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Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: ViperChick Secret Agent 006.9 who wrote (34530)	2/1/1998 10:38:00 PM
From: Greg R	Read Replies (1) \| Respond to of 58727

Lisa - A stock's price, or in this case the DOW is NOT allowed to move outside of the white area. The trading computers will issue sufficient buy or sell commands to keep the price within the boundaries and if they don't the company will either buy back their shares to take advantage of the low price or fire the president etc. On the other extreme, they will often issue more shares to take adavantage an excessively high price to raise capital. Normally, a price will not be allowed to get anywhere near extremes of the boundaries, but if it does, happy days are here for the Inpathique investor because we KNOW the price will correct and usually in a very sharp and fast way. Just look at the DOW example in the two cases where it actually touched the Boundary. The speed with which it retreated from the Boundary was like it had touched a red hot stove.