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Path: utzoo!linus!security!genrad!grkermit!masscomp!clyde!floyd!whuxle!jug
From: jug@whuxle.UUCP
Newsgroups: net.invest
Subject: Re: Stock Rip Off?
Message-ID: <230@whuxle.UUCP>
Date: Tue, 24-Jan-84 09:19:59 EST
Article-I.D.: whuxle.230
Posted: Tue Jan 24 09:19:59 1984
Date-Received: Fri, 27-Jan-84 06:55:48 EST
Organization: Bell Labs, Whippany
Lines: 27

You have discovered the problem of the average of a bunch of numbers
to draw conclusions about their distribution. The computation you should
make goes more along the following lines:

Let's use the composite closing prices of Friday, January 20, 1984.

Name              Close    No. of Shares     Value
----------------------------------------------------
"Old" AT&T      $ 65.625       100        $ 6,562.50
===================================================
"New" AT&T      $ 17.75        100        $ 1,750.00
Ameritech         68.125        10            681.25
Bell Atlantic     73.5          10            735.00
Bell South        93.5          10            935.00
Nynex             63.875        10            638.75
Pacific Telesis   61.75         10            617.50 
Southwestern Bell 65.125        10            651.25
US West           63.5          10            635.00
----------------------------------------------------
Total post-divested shares     170        $ 6,643.75
****************************************************


As you see, this is not a "rip-off" if you do the calculations properly.

J. U. Grauman
whuxg!jug