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To: Donna Carey who wrote (679)	1/1/1999 11:52:00 AM
From: Jon Stept	Respond to of 41369

Hi Donna, Re: Mutual Fund buying proof... I see you are curious as I am about proven information on how Fidelity, and I suspect all, Dow funds add a new entry. I venture a guess, and let me know what you think. I don't think any of them will buy AOL until after the first second of 1999 because until then the new entry is not an actual component of the Dow. The funds would not add because until then there would be liability issues about having a stock that is not part of the Dow in their fund. In their prospectus they probably state that they can make purchases of other types of instruments like cash and bonds to strategically maximize their profits when transferring around massive amounts of money. But I don't imagine any exceptions are made for adding major portions of their portfolio to other stocks. Imagine, they buy AOL before the 1st second of the new year, bad AOL news hits , (please no! :) ), the stock tanks and they are stuck. Angry mutual fund holder ask, "what were you doing with AOL when it was not a component of the Dow?". Mutual fund says, "Well it was going to be". To me, that appears to be a liability. What do you think? Jon :)

To: Donna Carey who wrote (679)	1/1/1999 1:14:00 PM
From: vc21	Respond to of 41369

Donna, See post 705. I read somewhere that Vanguard does not purchase until a stock has become part of an index. That is what led me to believe they have not purchased yet. I could be wrong. Regards, Vic