Intel Corporation (INTC) Message Board

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Technology Stocks : Intel Corporation (INTC)

INTC 34.83

+3.6%

3:47 PM EST

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To: nihil who wrote (77630)	4/2/1999 9:20:00 AM
From: Robert Douglas	Read Replies (3) of 186894

<<The people who produce the wealth represented by capitalization are the stockholders who bid up the prices of the stock, not the corporations that actually make and sell things with the capital raised from founders' copntributions, IPO's and SPO's. >> While it is certainly true that wealth can be created for the individual shareholder whose "piece of paper" rises in value, the real wealth to an economy, must depend on the value of goods and services produced by that company. This real wealth will one day be reflected in the value of the stock. You and I can create imaginary wealth by trading my dog Fido back and forth at ever increasing prices. But since Fido is basically an unproductive asset, eventually the game will end and this illusory wealth will vanish. How much of these Intenet stocks is illusory wealth? Time will tell. -Robert

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