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

To: Wyätt Gwyön who wrote (125855)	12/5/2002 10:54:54 AM
From: carranza2	Read Replies (1) \| Respond to of 152472

allow me to resort to a critique of pure reason: Nice kant, mucho. I'm enjoying the debate tremendously. Thanks to you, Clark, and the others who have participated. It's just a matter of time, in my opinion, before the FASB requires that options be expensed. It is clearly the correct thing to do. Options were valuable in the bubble market, when earnings didn't count for high tech companies with a brilliant ground-breaking future, like Pets.com. In a bear market, however, their downside is apparent. I'd be very surprised if more than 10% of options granted by tech. companies during the bubble--say, prior to March, 2000--were not underwater. Tax bills for those who exercised options on shares that now sell below the exercise price have got to be huge and painful. I think it is these lessons that will make options less popular as a part of anyone's compensation package, regardless of how they are treated from an accounting standpoint. The market's invisible hand may well provide the cure which is needed.