Investor FAQ

Press Release - Qualcomm Announces a Two-for-One Stock Split and Dividend Increase

  • With regard to a stock split, what do the terms "Record Date", "Distribution Date" and "Ex-Dividend Date" mean?
    1. "Record Date" refers to the date on which all holders of Qualcomm stock are identified to determine who will receive the declared dividend of additional Qualcomm shares. The Record Date for this transaction is July 23, 2004.

    2. "Distribution Date" refers to the date that additional shares are distributed to stockholders of record. The Distribution Date for this transaction is August 13, 2004.

    3. "Ex-Dividend Date" refers to the date on which the distribution has been completed and the quoted price of Qualcomm stock reflects the proposed stock split. The Ex-Dividend Date for this transaction is August 16, 2004.
  • What if I own Qualcomm shares on July 23, 2004?
    If you own Qualcomm shares as of July 23, 2004, you are the "record owner" of those shares and will be entitled to receive one additional Qualcomm share for every one Qualcomm share that you own (the result being you will have two shares for each share you owned prior to the split).
  • What if I purchase Qualcomm shares after July 23, 2004 and before August 14, 2004?
    If you purchase Qualcomm shares after July 23, 2004 and before August 14, 2004, you are considered the "beneficial owner" of those shares and will automatically receive one additional Qualcomm share for every one Qualcomm share that you purchased. Your broker can explain this further, as well as assist you with the transaction.
  • What if I sell Qualcomm shares after July 23, 2004 and before August 14, 2004?
    If you were the owner of those Qualcomm shares as of July 23, 2004, you are considered the "record owner" and are entitled to receive one Qualcomm share for every one Qualcomm share that you own. HOWEVER, if you sell those shares after July 23, 2004 and before August 14, 2004 you are no longer entitled to keep the additional Qualcomm shares. Because you were considered the "record owner" of the Qualcomm shares on July 23, 2004, you may still receive these additional shares. In order to deliver the additional shares to their rightful owner, you may receive a "due bill" for the additional shares. This "due bill", which is often incorporated in the broker's confirmation of sale notice, states that, upon receipt of your additional Qualcomm shares, you must deliver them to the broker who conducted the sale so that they can be forwarded to the buyer. Your broker can explain and assist you with the transaction.
  • What will happen to the outstanding securities (such as puts, calls and Long-term Equity Anticipation Securities), in my brokerage account?
    Any outstanding securities in your brokerage account as of August 13, 2004 will automatically be adjusted by your broker according to the 2:1 stock split. For detailed information regarding your specific account, please contact your broker.
  • What will happen to the existing Good 'Till Canceled (GTC) or Limit order(s) for my Qualcomm shares that I have outstanding with my broker?
    Please contact your broker directly for information on how your outstanding order(s) will be handled.
  • What are the tax consequences to Qualcomm stockholders that receive additional Qualcomm shares?
    This type of transaction is not considered a taxable event, thus the additional shares received will have no tax consequence (see below).
  • Will the basis for my original Qualcomm shares change due to the stock split?
    Yes. The cost basis per share of your Qualcomm stock, used to calculate your tax liability, will be reduced by one-half (see below). NOTE: Since you will have twice as many shares, the total cost basis is unchanged.
  • What will the cost basis be for the additional Qualcomm shares that I receive?
    The cost basis per share, used to calculate your tax liability, will be one half the cost basis for your "original" Qualcomm stock.

    EXAMPLE: On August 13, 2004 you own 300 Qualcomm shares - 100 shares with a basis of $50, and 200 shares with a basis of $40. On August 14, 2004, you would own an additional 300 Qualcomm shares - 100 shares with a basis of $25, and 200 shares with a basis of $20.

    Shares Cost Basis at Purchase TOTAL Cost Basis
    BEFORE the Split 100 X $50 = $5,000
    200 X $40 = $8,000
    AFTER the Split 200 X $25 = $5,000
    400 X $20 = $8,000
  • How will I receive my additional Qualcomm shares if I currently hold Qualcomm stock certificates?
    If you currently hold Qualcomm stock in certificate form you are considered the "stockholder of record." The stock dividend shares are being distributed to you through a new program called Direct Registration Services, or DRS. This means that instead of issuing a physical stock certificate, Qualcomm's transfer agent, Computershare Investor Services LLC, will issue a "book-entry advice" which indicates that your shares are being held by the transfer agent in an account that will be created for you. After receipt of the advice, you will have the following options:

    1. Leave shares in your DRS account.
    2. Sell shares through Computershare.
    3. Request that Computershare issue a physical stock certificate to you.
    4. Electronically transfer the shares to a broker.

    If you do not receive your advice by August 20, 2004, please contact Computershare at 312-588-4157.
  • How will I receive my additional Qualcomm shares if I currently hold Qualcomm stock in my brokerage account?
    If you currently hold Qualcomm stock in a brokerage account, also known as holding shares in "street name", your broker is the "stockholder of record." Additional shares will be delivered to your broker and your brokerage account will be credited with those shares.
  • What if I want to change the way I hold my Qualcomm stock after I have received them?
    1. If you currently hold Qualcomm stock in certificate form and want your additional shares to be held in a brokerage account (in "street name"), after receipt of the advice, complete the "Transaction Request Form" which contains instructions for transferring shares to your broker. To accurately facilitate this transaction, please contact your broker for specific instructions.

    2. If you currently hold Qualcomm shares in a brokerage account and would like your Qualcomm shares issued in certificate form, or to transfer them to a DRS account at Computershare, you will need to contact your broker after August 13, 2004.
  • What if after the split I end up with fractional shares?
    You will not end up with fractional shares since you will receive one additional share for every one share that you own.
  • I personally hold Qualcomm stock certificate(s) and recently moved. Do I need to do anything?
    If you personally hold Qualcomm stock in certificate form and have recently moved, you should immediately contact Computershare at 312-588-4157 to update your address.