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

To: Mark The Trader who wrote (50119)	3/17/2001 12:31:13 AM
From: Wyätt Gwyön	Respond to of 77397

You know that S & P funds have to track the S & P so they cannot liquidate unless the weightings change. That in itself will probably keep the stock above $ 10. They don't need to liquidate. If Cisco's price goes down faster than the S&P, then its weighting in the S&P Index goes down perforce. The value of Cisco holdings (and hence their weighting) in the portfolios of index funds are adjusted automatically thanks only to price action. And using your incorrect notion as grounds for a $10 price floor does not make sense. Cisco has already lost more than 75% from its peak without getting kicked out of the index. Over 400 billion dollars. Why would another 70 billion be impossible? Again, Cisco may never go down to $10/6/2.50, but I don't think the reason for not going to those levels has ANYTHING to do with index funds!