Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Leap Wireless International (LWIN) -- Ignore unavailable to you. Want to Upgrade?

To: Wyätt Gwyön who wrote (1507)	2/22/2002 9:14:54 PM
From: oconnellc	Read Replies (1) \| Respond to of 2737

Question... Say the NASDAQ is made up of 10 companies, each of which is worth $100Million, say that equates to a NASDAQ value of 1000... Now, say company number 10 begins to tank, while the other 9 remain at their market cap of $100Million. Eventually, company number 10 is worth $1. At this point, I assume that the value of the NASDAQ index is 900. Once company 10 becomes worth less then $1, it gets delisted. The NASDAQ index is now made up of 9 companies each worth $100Million. Wouldn't the value of the index be 1000 again? Since I have read the word 'average' at least once in this discussion, I would assume that the index would be 1000. In that case, comparing the index today with the index from 18 months ago is not an apples-apples comparison. I can see the board of governors (or whatever they have that runs the show) spending long hours, combing through the list of companies traded on the NASDAQ looking for turds to delist. Chris