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Technology Stocks : DELL Bear Thread -- Ignore unavailable to you. Want to Upgrade?


To: nihil who wrote (1725)8/29/1998 1:14:00 AM
From: lin luo  Read Replies (1) | Respond to of 2578
 
When one sells stock which is held on margin, the margin loan (sometimes more than half of the proceeds) disappears.

Not everyone buying on margin, especially the funds, institutions and wealthy individuals. Again, where does margin come from? We are not talking about commodity futures margin.

A river running into the sand disappears.

You mean the water is gone?

An investor who takes the money left after he is sold out and buries it under the floor of his hut reduces the money supply even further.

You are talking about the poor people, which is not important in the markets.

Stock-market collapses usually destroy huge amounts of money and scare even more underground.

Not for a very liquidable market. That is the whole and very original purpose to have a market.