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Technology Stocks : PALM - The rebirth of Palm Inc.
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To: Greg S. who wrote (171)3/1/2000 12:41:00 PM
From: kcmike  Read Replies (2) of 6784
 
No, I do not think that there will be an $80 Arb. That was merely an example. But that IS exactly what will happen if that occurs. Of course people will sell COMS if PALM tumbles, and buy COMS if PALM soars.

The point is, if the arbitrage is very large, not matter what the stocks do, PALM will get shorted and COMS bought. Can anybody else explain this better than me? I am NOT a market expert OR a teacher ... have just seen this happen before.

Thanks
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