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Technology Stocks : America On-Line: will it survive ...? -- Ignore unavailable to you. Want to Upgrade?

To: JC Reddy who wrote (12803)	12/22/1998 6:41:00 PM
From: stock_bull69	Respond to of 13594

Not true! SCH has had several days where the stock has climbed 5-10% in one day since being added to the S&P 500 and its stock price is less than half that of AOL!

To: JC Reddy who wrote (12803)	12/22/1998 6:45:00 PM
From: RocketMan	Read Replies (1) \| Respond to of 13594

Less volatality is exactly the problem here. Ah ... come again? Give me low volatility and slow but steady stock price appreciation any day to high volatility! Of course, I am not a day trader, who are the only ones who benefit from volatility. Anyway, AOL has inherent volatility and high appreciation from its sector. That might be slowed down by the S&P but not stopped.

To: JC Reddy who wrote (12803)	12/22/1998 6:48:00 PM
From: Roy F	Read Replies (1) \| Respond to of 13594

My understanding is that an index fund is required to own all the stocks in the index. There may be a weighting based on the size of the company, but, to be an index fund, the manager must own all the stocks in the index (this may vary according to the concept of the individual fund). Once the initial position is purchased, new funds would be allocated according to the established weighting. This, it would appear, would have the effect of reducing the float, as these shares will not be traded, only held (unless the weighting needs to be adjusted). In this regard, it would seem that the volatility would increase due to the smaller number of tradable shares. Regards, Roy