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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?


To: Jon Koplik who wrote (77805)7/25/2000 9:15:39 PM
From: Art Bechhoefer  Read Replies (2) | Respond to of 152472
 
Long term options will reflect the price of the combined QUALCOMM and "Spinco" until such time as the spin off occurs. It is not clear to me how this spin off will be treated because the company is trying to make it tax free. An option will be worth more prior to the spin off. If one exercises the option at that point, he or she will end up with shares in the parent and the spin off. One may wish to sell the existing option and buy another one after the spin off occurs. The one thing that appears certain is that QUALCOMM once again has taken an action that is in the best interest of its existing shareholders. You won't find many companies that go to this extreme.



To: Jon Koplik who wrote (77805)7/25/2000 11:44:43 PM
From: freeus  Respond to of 152472
 
That was VERY clear: thank you.
So a dividend, though an extra, does not change ownership of a "piece" of the company.
However splitting shares, or splitting off parts of the actual company, do change ownership of a "piece" of the company.
It actually makes sense to me!