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Technology Stocks : ADC Telecommunications -- Ignore unavailable to you. Want to Upgrade?

To: bronco2 who wrote (1099)	10/2/2000 3:46:05 PM
From: Bosco	Respond to of 1944

Hi Eric - I think the opposite is true. Briefing.com is probably trying to explain ADCT strength in the midst of a Naz rout by saying some of the index funds increase ADCT weighting due to the acquisition. I don't quite know how S&P 500 works, but I thought it was by capitalization. However, there are many flavour of the index, so it is possible that some of the more actively managed [I know this is an oxymoron!] index funds may juice up some holdings if and when they feel the positions may increase in weight. Another possibility is that changing of other members of the index may affect the overall scheme of things. It is unlikely to recipients of the newly minted shares can sell the stock right away. Just a guess though best, Bosco

To: bronco2 who wrote (1099)	10/2/2000 3:49:25 PM
From: BWAC	Read Replies (1) \| Respond to of 1944

Yeah, I can try to explain that. The S&P indexes are market capitalization weighted. ADCT is increasing its market cap by the shares being issued, thus to hold X% in the index weighting the funds must purchase a little more. Which brings up the foolishness of index funds. They HAVE to buy and sell certain things WITHOUT REGARD to price or valuation.