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Technology Stocks : Dell Technologies Inc.
DELL 122.70+0.2%3:59 PM EST

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To: Sig who wrote (170167)7/13/2002 4:37:44 PM
From: Sig  Read Replies (1) of 176387
 
I have one solution the SEC could implement , this being similar to the FDIC which charges the banks a fee to guarantee deposits.
The SEC sets up a trust fund to guarantee that shareholders in new issues get at least 50% back on their original investment.
For example, they could charge a company 25 cents/ share for each new share. If the IPO is for $10, the brokers may sell it for $20 on the first day- so 25 cents is "peanuts" It would also constrain companies from issuing far more shares than needed or their income can support.
If the company assets ever dropped to $5/sh, they would have to liquidate and return the $5 to shareholders.
This would also give the SEC the money needed to do better job.
( Should be able to find one or 2 Congressmen willing to vote on this, the others will be out of town until after the Elections).
Sig
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