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 : Oracle Corporation (ORCL) -- Ignore unavailable to you. Want to Upgrade?

To: Mo Chips who wrote (4501)	12/16/1997 10:38:00 AM
From: nanu swamy	Read Replies (2) \| Respond to of 19080

>> You mean the Fed is buying stocks on the NYSE??? Hey Mo, The price of a stock is directly related to the supply/demand situation. If there is more money pumped into the financial markets i.e the Fed pumps money into big financial institutions - there is more money/fluidity in the system to trade the "fixed" quantity of stock. So the stock price has a tendancy to go up... (but may not due to other conditions) The Fed also has the power to pull money away from financial institutions and produce an opposite effect. Another way of explaining it is - Why do you think Home Mortgage Interest Rates are so low (6%) now?? Becoz financial institutions have excess money and to lend it out they need to reduce interest rates or else nobody would be interested in it.. Thanks, nanu