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From: | "tennyson@caverock.net.nz" <tennyson@caverock.net.nz> |
Date: | Wed, 22 Aug 2001 23:52:19 +0000 |
> > > No one has yet mentioned the issue of leverage. Consider a $10,000 > position. @ $10.00 share = 1000 shares. $3.00 =3,333 shares. If > the share price increases 10 cents, which price scenario favours the > trader? > > Again there is no (theoretical) difference. Any event that will cause 3,333 $3 shares to rise 10c will cause 1,000 $10 shares to rise 30c. The Trader is no better or worse off. SNOOPY --------------------------------- Message sent by Snoopy e-mail tennyson@caverock.net.nz on Pegasus Mail version 2.55 ---------------------------------- "Q: If you call a dog tail a leg, how many legs does a dog have?" "A: Four. Calling a tail a leg doesn't make it a leg." ---------------------------------------------------------------------------- http://www.sharechat.co.nz/ New Zealand's home for market investors ---------------------------------------------------------------------------- To remove yourself from this list, please use the form at http://www.sharechat.co.nz/forum.shtml.
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