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: Perry Ganz who wrote (1510)	2/23/2002 12:59:45 AM
From: oconnellc	Read Replies (1) \| Respond to of 2737

<<When the index was first published on Feb. 5, 1971, its base value was 100. An index of 2,000 indicates that the total market value of stocks in the index is 20 times greater than it was back then. The base value is adjusted when stocks are added to or subtracted from the index.>> If this is true, then the absolute value of the index seems kind of meaningless. Without knowing the base value, the absolute value doesn't seem to say a lot. Right now, the absolute value of the index is ~1750 or so. At one point in 2000, the index was ~5000. At first guess, that seems to say that the the index has dropped two thirds of its value. However, if the base value is twice as high as it was then, then the index has really dropped five-sixths of its value (a loss of 84% compared to a loss of 66%). I will look to see if I can find info on the changes to the base value. Chris