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Technology Stocks : America On-Line (AOL)
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To: Modano who wrote ()1/10/2000 11:12:00 AM
From: SLSUSMA  Read Replies (3) of 41369
 
Someone please check my reasoning:

In order to own 500 shares of the new company, I need about 333 shares of TWX. In order to own 500 shares of the new company, I need 500 shares of AOL.

AOL costs $72 and change now.

TWX costs about $90 now.

Price of TWX = $90*333 = $30k

Price of AOL = $72*500 = $36k

I save $6k by selling my 500 shares of AOL and buying 333 shares of TWX, right?

Does this make sense to anyone?
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