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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?

To: marginmike who wrote (4082)	8/4/2000 2:35:46 PM
From: macavity	Respond to of 19219

Mike I am a bit lost at what you mean. New issues basically always take the money away that would have gone into buying the other go-go stocks. They can only take money out of the system. All the money managers need to buy equity. The more money that goes into new issues the less there is to be funnelled into the established indices/stocks. In fact people might even sell their old shares to buy the new ones - either at IPO date or when the lockup expires. TotalCashInMarket = NumOfShares x PriceOfShares if there is no new cash then the price has to go down if the number of shares in the market increases whether these shares are added at IPO or lockup is irrelevant if you add more shares to the system you put pressure on prices(everywhere). It is like one big rights issue on the whole market. - macavity