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Technology Stocks : Altaba Inc. (formerly Yahoo) -- Ignore unavailable to you. Want to Upgrade?

To: Oeconomicus who wrote (9048)	4/2/1998 11:08:00 PM
From: Bill Harmond	Respond to of 27307

RD, Well said! I'd like to add that there is never any money "in" the stock market. New money leaves the market just as fast as it comes in...to the seller minus a tad for payments to the intermediaries and a bit for the SEC. It's just a confidence game. Like you said, the gross capitalization of the equity market is determined at the margin by the last reported sale in each issue, so the stock market is just a scoreboard of confidence. There's no money there. If you asked all the current holders of Yahoo shares what we paid for them, I doubt it would add up much over $1 billion.

To: Oeconomicus who wrote (9048)	4/3/1998 2:33:00 AM
From: craig crawford	Read Replies (1) \| Respond to of 27307

Yes RD, a fine job of explaining why a certain amount of $ put into the market can push up prices in multiples. It was the end of the day and I was too tired to draft some long response like you did.

To: Oeconomicus who wrote (9048)	4/3/1998 9:25:00 PM
From: Michael Collings	Read Replies (1) \| Respond to of 27307

Bob thanks for that very clear explanation..... it's great having a math major here. So how do you figure the multiplier effect? Obviously some stocks go down, some go up, and some stay the same on any given day. 10 million in Yahoo might drive it up a point but 10 million in KO might not move it at all. Is there any universal number or calculation that is used? Or even an average number ie. if 1 billion comes into the market in new money, you would expect to see market cap increase by 20 billion. Thanks