6. Prior to 1990, before the privatization, why were users forced to buy Telmex shares?
Telmex was a private company for many years, until the 70`s President Echeverrìa had the State buy the majority of the shares. In fact, The stock was worth approximately 70 or 80 pesos, but was bought for 115 or 120. At that time there was not too much information control,, actually there was information was regulated, but this was the way in which the majority was bought. Despite the fact that a year and a half went by before the telephone was provided, users were forced to buy shares or bonds. That is why the shares were punished for so many years.
The government bought many of those packages of shares. Telmex was nationalized without a decree or anything else; the government simply bought the shares; it also owned preferential shares it turned into common shares.
Telmex was nationalized but stayed in the Stock Exchange; it continued to give shares for the records, and there continued to be a market for them in the United States; arbitrages continued, it was the most important stock in the Stock Exchange, where there were more arbitrages. (no se puede hacer nada con este párrafo pues es lo que dice el original)
There was a purchase-sale arbitrage with the United States; there were also many buyers here who bought the shares, even outside the offices, , and ads in the newspapers.
This happened in the first half of the 70s. Then Telmex was managed as a mixed company, with management, with a significant private ownership until it was decided to privatize it; almost half the company was outstanding in the markets.
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