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Technology Stocks : Intel Corporation (INTC)
INTC 43.80+0.7%3:39 PM EST

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To: John F. Dowd who wrote (167294)7/2/2002 11:38:04 AM
From: kapkan4u  Read Replies (1) of 186894
 
<Not evaporate it gets reinvested elsewhere.>

The paper money is created when prices are bid up in a bull market. The converse is true in a bear market. For example one cent in a share price of Intel corresponds to $67M of market cap, but it can be controlled by a trade of 100 shares or $1. So $1 bid difference on a trade of 100 shares up or down can push the INTC market cap $67M up or down. This is the basic mechanism that creates or destroys the paper assets.

Kap
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