How a Corporate Breakup Boosted Stock Prices

In the 1960s and early 1970s, big was beautiful. Corporate America saw a trend toward conglomerates. An investment in a diversified company was considered a good bet. If one of the conglomerate's businesses took a downturn, perhaps the others could carry it. A more recent trend has been for companies to focus on one industry. Investors are more likely to seek out companies that have a “pure play.”