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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?


To: The Duke of URLĀ© who wrote (142915)9/6/2001 7:29:27 AM
From: Road Walker  Respond to of 186894
 
Duke,

re: If there is a price protection scheme, that would be dealt with as a reserve or reduction in the AMOUNT of what is "sold", not whether or not a sale occurred.

There is a price protection scheme on the inventory at the distributor. Intel still considers this their property, they have not sent an invoice, it is merchandise that has shipped, but not been "sold". So if there is a price decline in a particular part in a distributors inventory, it is exactly the same as if there is a price decline in the same part in Intel's inventory. Once the product is sold from the distributor, it is invoiced at the current price. So there is no accounting +/- involved.

At least that's the way I would guess that it works.

John