PS: I did want to say that you are correct in pointing out that I should have been more specific with my terminology. My point was that this down market does affect many companies, not GSPN in particular. It�s an incestuous cycle -- stocks decline hurting companies� balance sheets that in turn makes stocks decline. Take Intel for example, from the 8/01 10-Q: �Equity market risk . From time to time the company may enter into designated fair value hedging transactions using equity options and collars to hedge the equity price risk of marketable securities in its portfolio of strategic equity investments. The gain or loss from the change in fair value of these equity derivatives as well as the offsetting change in hedged fair value of the related strategic equity securities are recognized currently in gains on equity investments, net. The company may or may not enter into transactions to reduce or eliminate the market risks on its investments in strategic equity derivatives, including warrants. Prior to the adoption of SFAS 133, warrants were not considered to be derivative instruments for accounting purposes. The company also uses equity derivatives not designated as hedging instruments to offset the change in fair value of certain strategic marketable equity instruments classified as trading assets.�
Obviously they are trying to hedge, but you can�t say they aren�t exposed!