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To: Pirah Naman who wrote (47792)	10/11/2001 3:01:30 PM
From: Seeker of Truth	Read Replies (1) \| Respond to of 54805

Thanks loads, Pirah. That's a very clear answer. Subtract the cash received from issuing new stock, subtract the capital expenditures, but add the depreciation. Makes perfect sense.

To: Pirah Naman who wrote (47792)	10/11/2001 3:29:44 PM
From: TigerPaw	Read Replies (1) \| Respond to of 54805

Wisdom from the most recent Nobel Laureates in Economics A timely example might further illustrate the idea that asymmetric information can generate adverse selection. At first, firms in a new sector – such as today's IT sector – might seem identical to an uninformed bystander, while some "insiders" may have better information about the future profitability of such firms. Firms with lower than average profitability will therefore be overvalued and more inclined to finance new projects by issuing their own shares than high-profitability firms which are undervalued by the market. As a result, low-profitability firms tend to grow more rapidly and the stock market will initially be dominated by "lemons". When uninformed investors eventually discover their mistake, share prices fall – the IT bubble bursts. nobel.se TP