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Non-Tech : Disney(DIS) & Coca-cola(KO)

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To: Dh who wrote (19)2/8/1997 7:45:00 PM
From: Patsy Collins   of 71
 
You are mistaken and naive to believe that KO is 34% of the S&P 500.

Just think! Is Intel in the 500? yes, it's cap is 140 B, so is Microsoft at 131 B, and Merck at 113, and GE at 174, and on & on...

Doesn't it looks weird that KO is 34% of the S&P 500. THINK!
How can the other 499 have a cap at an average of .5 B.
Why, even mid-caps like C-Cube Microsystem, (not in the 500) has a cap of 1.3 B.

Common sense should tell you that the 500, which is about 75% of the entire US stock market (give or take 5%) should NOT be so 'dominately represented' by 1 stock. Alternatively, the other 499 companies cannot possibly be collectively only about 3 times larger than KO.

You should think after reading or hearing from such as erroneous source, in regards to the 500's cap.

The actual market cap for the 500 is around 5 trillion as of the end of the third quarter 1996. This makes the average 500 cap at around 10 billion dollars. In this light, KO is only 2.88% of the 500.

Please be careful in your investing and good luck.
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