--- Grey Thomas <[EMAIL PROTECTED]> wrote: > What "system" are we talking about?
The stock market, or some subset such as US markets. > But generally the important question is "how much money is in the > (sub)system"? Literally money? What matters for the price of a stock is the present and expected net assets and earnings of a firm, not just the liquid assets. In an IPO, money enters, but is then converted into capital goods and other non-liquid assets, and the money leaves as payments for labor, rent, and equipment. In the end, the money is just a circulating medium, and what matters is assets of whatever form. Think of money as a flow, not a stock of cash. Fred Foldvary ===== [EMAIL PROTECTED]
