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To: Tim Bagwell who wrote (6181)10/24/1997 1:47:00 AM
From: damniseedemons  Read Replies (1) | Respond to of 25960
 
>The market is, by definition, always right.

Tim, you may find this interesting:
wfu.edu



To: Tim Bagwell who wrote (6181)10/24/1997 2:15:00 AM
From: Elroy Jetson  Respond to of 25960
 
The "Market is Always Right" theory is based on the time honored principle that people with inside information will trade on news before it becomes news.

While "Insider Trading" laws somewhat restrict the actions of board members and officers of a company, it does not control the trading of the company's customers, suppliers, next-door neighbors and many others who know more about the company's prospects than analysts and the investing puublic. Many people, upon finding important information affecting future prospects, would be tempted to bet the farm on what they know will be a sure winner.