Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : EMC How high can it go? -- Ignore unavailable to you. Want to Upgrade?

To: molemania who wrote (12103)	2/9/2001 5:03:32 PM
From: GVTucker	Read Replies (1) \| Respond to of 17183

It wouldn't be a pure arbitrage, though, unless MCDT got acquired. A person shorting MCDT and going long MCDTA couldn't be assured of a profit because there would be no way that the two had to converge, even if theory would suggest it. As a comparison, look at RD and SC. There should be a theoretical arbitrage there, also, because both own a fixed percentage of the same company, and nothing else. Yet because there is no mechanism outside a pure acquisition to force the two prices together, there can sometimes be a large disparity.