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Technology Stocks : America On-Line (AOL) -- Ignore unavailable to you. Want to Upgrade?

To: Brian K Crawford who wrote (5416)	2/22/1999 1:30:00 PM
From: Steve Robinett	Respond to of 41369

Brian, In reference to why AOL will benefit from boomer saving, you state, I believe a huge chunk of the future inflows will come thru S+P 500 type index funds. The index is cap weighted. Success at the company level will cause greater representation in the index. Automatically cause greater representation. An index fund owns a company in proportion to its weight in the index. If an individual stock goes up, obviously both the index and the fund adjust automatically. If you mean that new money going into index funds will have to be used to buy stocks in an index, sure but so what. That just means that if the company does well, all sorts of entities--individual investors, funds, whatever--will buy it. That sort of thing happens, companies do well, people buy them. Best, --Steve