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 : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Techie who wrote (47118)	6/10/1998 10:54:00 PM
From: Geoff Nunn	Read Replies (2) \| Respond to of 176387

The relevance is that the price of Dell is fixed by large traders: read: institutions or wealthy insiders. In general, prices of widely traded stocks (like DELL) represent a consensus of opinion of informationally motivated traders. As a rule these are either institutions or insiders. If the price were too high they would dump shares or perhaps sell short. They will buy if they believe the stock is underpriced, bidding up the price. In equilibrium the price reflects a consensus of opinion --i.e., a middle ground between the views of the optimists and the pessimists --as to the intrinsic value of the stock. Of course, consensuses may ultimately be proven wrong, even when they reflect the views of "smart money" - only time will tell. You can ignore the liquidity motivated traders ( whose only objective is either to get out of cash or into more cash) and the small traders. Their actions whether buying or selling tend to be offsetting. It is the informationally motivated investors who determine the price of the stock. JMO Geoff