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


To: Elroy who wrote (122033)7/24/2002 9:51:33 AM
From: Wyätt Gwyön  Read Replies (1) | Respond to of 152472
 
Deep in the money options should count 100% toward dilution, at the money something like 50% and way out of the money close to zero dilution. If anyone knows whether my understanding is correct or not, I would appreciate it.

my (imperfect) understanding is that when cos do a fully diluted calculation of EPS, they include the options that are in the money only. i am not sure of the particulars, but i am pretty sure cos do not immediately dilute EPS the minute they grant options. i am also unsure if they dilute options that are not vested, even if they are in the money. sounds like a pretty high Fudge Factor, if you ask me.