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Technology Stocks : Semi Equipment Analysis

SOXX 309.40

+1.0%

Dec 5 4:00 PM EST

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To: Sarmad Y. Hermiz who wrote (11831)	9/26/2003 12:09:15 AM
From: robert b furman	Read Replies (1) of 95530

Hi Sarmad, I may be wrong here, But when you buy a stock from a broker on margin,it doesn't mean somebody sold it. It means the holder of your margined certificates levergaed the paper certificate a second time. They give it to a bank as collateral for a loan,which they offset with your cash when you buy it. It is collateralized and it is leveraged.JMHO If they don't have the stock they go to the MM,and he shorts it and creates additional float.Addition through subtraction. Ultimately at a top it collapses because the purchasing power cannot keep up with the created float.Ultimately the price falls on its own weight and the person making money is the MM. Know many millionaires who just made it shorting this last bear market - me either. The money made was at the exchange. How else do you think NYSE pay Gasso 139.5 million? It has to come from somewhere!! It is a good ole boy club personified. I'm not mad about it - just trying to understand it! Bob P.S. Futures up nice now.GG

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