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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 78.03+0.8%Nov 14 9:30 AM EST
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To: jach who wrote (25838)5/18/1999 4:56:00 AM
From: Freeflight  Read Replies (2) of 77399
 
i don't think index fund administrators are buying a real portion of the firms in their index.
note greenspan's approval comments two months ago of these new trading vehicles that
have no real equity in anything...i.e. derivatives etc.

i just traced fidelity spartan market index fund; and they just turned it over to bankers
trust to manage last month. if you research bankers trust they spot the monies to pay out
from cash reserves. the money paid in reflects phatom equity % of actual stocks, but
they don't actually buy that % in real terms. So what the hell do they do with the index
monies paid in then?

i then checked the nasdaq site for the QQQ index stock. it is a real index stock like
fidelity spartan, and the QQQ administrator in NYC does NOT buy the actual % of real
company stock.

You know what this means! If financial instruments all go to hell in a handcart someone
has to liquidate index fund money with no hard equity in anything but the funds which are
at the disposal to the administrative bank to give loans to 3rd world countries or
whatever else they really do with the monies.

Beware: there are disclaimers all over these index stocks which warn buyers that they
don't represent equity in any real firms which make up the index and thus have no voting
rights or bankruptcy claims etc.
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