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

To: Bob Frasca who wrote (8691)	1/11/2000 5:24:00 PM
From: GVTucker	Read Replies (1) \| Respond to of 17183

Bob, last post on this subject, if you want to take it further I'll gladly go to PM. I imagine we're boring the rest of the thread to death. 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 That is NOT the truth, it is just plain wrong. A money manager allocates capital based upon a % of his overall portfolio. THIS IS A DOLLAR AMOUNT. It is then converted to a number of share based upon the value per share. The share price is NEVER considered when evaluating where to weight a portfolio, and this weighting is ALWAYS done with $, not shares. I saw it when I was working the sell side, I was it when I was working the buy side for someone else, I see it now when I structure my own portfolios. It would be stupid to structure a portfolio otherwise, and a stupid portfolio manager doesn't last long. 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. A specialist is given privileges that no one else gets. In exchange for this privilege, a specialist is indeed responsible for insuring an orderly market yes, but he is also responsible for providing liquidity when there is an absense of buyers or sellers. Providing liquidity is an obligation of the specialist. Check out the exact words of the NYSE: "Finally, if buy orders temporarily outpace sell orders in a stock - or if sell orders outpace buy orders - the specialist is required to use his firm's own capital to minimize the imbalance. " The specialist is REQUIRED to provide liquidity in the event of imbalances. This obligation is in addition to the obligation to maintain an orderly market. A full synopsis on the specialist's role is here: nyse.com