Back when AT&T Corp. was the national telephone monopoly, and even after its breakup in 1984, Americans often bought youngsters one share in the company as a birthday or holiday gift.

It was an investment in optimism, based on the belief that even a minuscule stake in the "reach out and touch someone" icon would always increase in value and generate dividends. For years, AT&T was the most widely held stock, and AT&T nurtured the relationship by giving every shareholder free calling cards and other tokens.

Even though today's AT&T is not your father's AT&T because of multiple spinoffs and restructurings and telecommunications turmoil, there still are 300,000 people who own fewer than five shares of its stock, according to the company.

Now in another sign of AT&T's transformation, the company is about to cut its ties to those tiny investors. Unless they increase their small holdings soon, they won't own a part of the business anymore.

The shares will be cashed out to the small holders as a result of AT&T's highly unusual decision to pull off a a 1-for-5 reverse stock split immediately after it completes the upcoming spinoff of its cable TV division, AT&T Broadband, which will be merged with Comcast Corp.

A reverse split, which boosts a company's stock price by decreasing the total number of outstanding shares, usually is a last-ditch tactic used by companies facing stock market delisting because their shares are selling for less than $1.

This reverse split is partially for aesthetic reasons.

AT&T, which has lost nearly $15 billion over the last 12 months, has seen its stock price mired in the low teens most of that time. With the broadband division gone, the remaining AT&T will be worth less, likely dropping its shares into the $5 range.

Extremely proud of its image, AT&T wants its stock price five times higher, even though the company's overall value will be unaffected.

Also, with the number of AT&T shares floated on the stock market cut by a factor of five, the move will save money for investors who pay per-share brokerage commissions on stock purchases and sales, AT&T spokeswoman Eileen Connolly said.

AT&T won shareholder approval for the reverse stock split in July.

The AT&T-Comcast deal has been approved by shareholders of both companies and is awaiting final regulatory approval, which is expected to happen by mid-November. The reverse stock split will come immediately afterward.