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

To: hueyone who wrote (130119)	7/10/2003 7:04:06 PM
From: Art Bechhoefer	Read Replies (1) \| Respond to of 152472

I don't want to take too much space on this thread to discuss what was already discussed earlier, either here or on the moderated thread. What I was proposing was that options are often granted subject to a number of restrictions, such as not being able to be exercised for several years, providing that the employee is still working for the company. If the option can't be exercised, then it can't be anything more than a deferred expense. The closer one gets to the exercise threshold, the more intrinsic value the option assumes. Once the option can be exercised, it should be fully expensed. Maybe I'm missing something here, but the only way I can understand expensing an option immediately is if it is considered an IOU. It really isn't an IOU unless there's a good chance it will be cashed. Art