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

To: John F. Dowd who wrote (167294)	7/2/2002 10:20:00 AM
From: GVTucker	Read Replies (2) \| Respond to of 186894

Nope, it evaporates. Imagine that one person had all of Intel two years ago. She was worth $500 billion. Another person acquired that person's Intel stake for $500 billion in cash. Total net worth at the time--$1 trillion. ($500 billion cash and $500 billion of Intel) The $500 billion in proceeds was indeed invested elsewhere. But the Intel stock? Now it's worth $100 billion. Total net worth now--$100 billion in Intel plus $500 billion plus whatever profits were generated from that $500 billion in cash. Guaranteed that those profits are probably zero, if not less. Total net worth--$600 billion. What happened to the other $400 billion? It disappeared.

To: John F. Dowd who wrote (167294)	7/2/2002 11:38:04 AM
From: kapkan4u	Read Replies (1) \| Respond to of 186894

<Not evaporate it gets reinvested elsewhere.> The paper money is created when prices are bid up in a bull market. The converse is true in a bear market. For example one cent in a share price of Intel corresponds to $67M of market cap, but it can be controlled by a trade of 100 shares or $1. So $1 bid difference on a trade of 100 shares up or down can push the INTC market cap $67M up or down. This is the basic mechanism that creates or destroys the paper assets. Kap