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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: Monty Lenard who wrote (45589)	12/31/2000 12:11:44 PM
From: James F. Hopkins	Respond to of 77400

Well I found some error in my "weight by share" index..however in some cases a market cap weighted index is used to jack up the price of some not so liquid stocks, " float of shares, is much smaller than the outstanding " ie the Market cap is based on the outstanding and calls for indexers to buy X amount, but company keeps the float so thin that it's price rockets as indexers try to buy shares. It's not some accident either that they use this as Leverage and can borrow 50% against all the shares and options as if they were really worth it, then grab the money and run. ------------- So there is still a big fault in an index that's not weighted by float and the crooks know how to exploit it. So we need a system that marks the market cap via the actual "float" and not outstanding so indexers are not forced to buy shares that are not there, but waiting to be dumped. Jim