Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Path: utzoo!watmath!clyde!burl!ulysses!mhuxl!houxm!hogpc!btb From: btb@hogpc.UUCP (B.BURGER) Newsgroups: net.invest Subject: Old & New AT&T Stock Message-ID: <328@hogpc.UUCP> Date: Tue, 31-Jan-84 22:29:10 EST Article-I.D.: hogpc.328 Posted: Tue Jan 31 22:29:10 1984 Date-Received: Tue, 7-Feb-84 07:24:19 EST Lines: 22 All the calculating of whether "old AT&T" stock is worth more or less than the sum of its parts is silly. In general, the whole will equal exactly the sum of the parts. If the old sold for more than the new, then everyone holding the old would try to sell and buy the new instead, driving the price back to equilibrium -- and vice versa (follow that?) Of course, the market isn't perfectly efficient, so at any given instant either the old or the new is a slightly better buy -- but they should tend to be equal. The suggestion that the sum of the new should exceed the old because "you can pick whatever pieces you want" with the new is silly. While an individual can pick and choose, investors as a group hold the same number of shares in each piece (with the exception of AT&Twi, which has 10 times as many shares outstanding). Just remember that for every seller there is a buyer. Please think about this before flaming, and you won't. --Bruce Burger AT&T-Information Systems Lincroft, NJ