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

To: engineer who wrote (27023)	4/14/1999 7:45:00 PM
From: Caxton Rhodes	Read Replies (1) \| Respond to of 152472

stock dividend just means it's not taxable. Caxton

To: engineer who wrote (27023)	4/14/1999 7:52:00 PM
From: T L Comiskey	Respond to of 152472

e...."Is it normal to declare this a "stock dividend"? ...Yes...normal....Tim

To: engineer who wrote (27023)	4/14/1999 8:01:00 PM
From: Morgan Drake	Respond to of 152472

Does a 100% stock dividend have the same impact on options contract holders as does a 2:1 split? Specifically, are the contract shares doubled and the strike price halved?

To: engineer who wrote (27023)	4/14/1999 11:32:00 PM
From: JGoren	Read Replies (2) \| Respond to of 152472

The only difference between a stock split and a stock dividend has to do with par value of the common stock. When the stock is "split", e.g., 2 for 1, the par value is cut in half and the paid-in capital on the balance sheet does not change even though double the number of shares are now issued and outstanding. Qualcomm's common has a par value of $0.0001 or 1/100th of a cent, and I believe that 300 million shares were stated as authorized in the latest annual report. With a stock dividend, new shares are issued, and one hundredth of a penny per share will be added to paid-in capital; the par value of each share received will be $0.0001. A 100% stock dividend is non-taxable, since it is equivalent to a stock split for economic purposes. A 2:1 leaves the company with approximately 160 million authorized but not issued and outstanding. I didn't look at the total number of shares that need to be reserved for the exercise of warrants, employee stock options, etc., but a 3:1 would have left the company with few shares left to issue. I just realized that I have not received my annual report, so it is difficult to check this online. Unless more shares were authorized at the annual meeting, the company won't have enough shares to have a another 2:1 split or stock dividend. Someone out there with a hard copy of the proxy statement and the annual report can check this and correct me if I am wrong or have done my math incorrectly. There is no comparison to the spin-off stock dividend that occurred with Leap.