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Technology Stocks : COMS & the Ghost of USRX w/ other STUFF
COMS 0.00130-23.5%Nov 7 11:47 AM EST

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To: Jerrold Davis who wrote (139)6/11/1997 8:36:00 PM
From: Todd N   of 22053
 
I posed the same question a few weeks ago on another COMS thread. I got no answer but I did some investigation on my own. I contacted S&P, but they were no help.

Because the S&P 500 is Market Cap-weighted, IMHO the index funds would be forced to sell (or not buy for a while, depending on money inflows into the fund) a little of the other 499 issues and double up on COMS to bring the fund into the proper ratio. I don't know how much of 3Com is owned by index funds, but they will have to increase their number of shares by a factor to match the capitalization change. Though not official until tomorrow, I suspect that the fund managers have been accumulating shares the past few weeks in anticipation of the merger, though they may have more to go.

Nonetheless, it certainly won't hurt!
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