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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting

QCOM 172.29

-2.2%

3:59 PM EST

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To: carranza2 who wrote (59014)	1/25/2007 12:27:57 PM
From: JGoren	Read Replies (3) of 196980

Many years ago I was a securities lawyer. As another reply says, the problem is not the holding shareholder but the shareholder who sells. The Company and insiders have an obligation to disclose material information under Rule 10b-5. That is why there are dark periods by convention. That is why when insider sell, they often do it pursuant to a pre-arranged schedule so they cannot be accused of benefitting from inside information or failure to disclose. If there is a material event that is revealed in the midst of the program, it doesn't matter. The Company is simply avoiding any appearance of impropriety and eliminating the possibility that someone who sold stock could argue the Company knew of positive information but didn't disclose it. It's tricky sometimes when the information must be disclosed. With mergers and acquisitions, from the time there is a decision that the Company would like to buy, entering of negotiations, completion of negotiations and the terms of the deal, there is a lot of time and there can be dispute as to when the deal should have been disclosed. That is why extreme caution dictates leaning over backwards not to buy. I think criticism is unwarranted and Qcom should be congratulated for its approach. The sale of puts method is interesting, because it has a time component in which information may be disclosed and there is still a component of voluntariness by the buyer of the put. In some ways that reduces the risk of disclosure problems, I would think.

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