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


To: rkral who wrote (119027)5/20/2002 6:52:59 PM
From: Peter J Hudson  Respond to of 152472
 
Ron,

<<I agree. However, the market price decrease due to dilution is impossible to measure when dilution is 2%/year and annual stock price volatility is 75%/year, as in the FY2001 for QCOM.>>

A truly efficient market would account for the dilution automatically, not only for options that have been exercised, but also for options that have been granted with varying probabilities of being exercised.

The dilution is significant and investors should be aware of it, but the whole issue has been blown out of proportion in the wake of Enron.