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Technology Stocks : EMC How high can it go? -- Ignore unavailable to you. Want to Upgrade?

To: GVTucker who wrote (8687)	1/11/2000 4:39:00 PM
From: Bob Frasca	Read Replies (1) \| Respond to of 17183

When you're an institution that needs to move $100mm of stock, liquidity is a big deal. And the stock's price is irrelevant to this liquidity. An institution wouldn't move $100mm worth of stock. An institution will move xxx number of shares that is worth roughly $100mm. It will be harder to sell those shares at $100 a piece than it will to sell twice as many shares at $50. That's the truth. I never said it was logical. Let's pretend for a moment that EMC and YHOO have exactly the same fundamentals in every way. The only difference between the two companies is the price of the stock. Which do you think will sell faster, 100 shares of EMC or 100 shares of YHOO? Obviously, all things being equal, EMC is cheaper therefore it will sell faster; consequently, it is more liquid than YHOO. My whole point throughout this discussion is that I think that you used the term "liquidity" incorrectly. The specialist isn't responsible for liquidity. He's simply responsible for making sure that the security trades in an orderly fashion.