Ted and Alice were in the process of negotiating a divorce agreement after $7$ years of marriage. They own STOCK ABC with a basis of $$6,000,000$ and a fair market value of $$3,800,000.$ They also own common stock $$ STOCK XYZ $-$ with a basis of $$2,100,000$ and a fair market value of $$3,800,000.$ Two assets we see here $$ each valued at $$3\mathrm{.}8$ million! Both bonds and stock owned for five years!

Both want the total $$value$$ of $$7\mathrm{.}6$ million to be divided evenly. Alice is trying to decide whether it is better to receive the ABC stock or the XYZ stock. She has no plans for selling the stock, whichever she receives. She$$s a long$-$term investor $$ whether up or down she likes to hold them.

On the other hand, Ted will likely sell $$ immediately $-$ the asset he receives. As an aside, he mentioned that he also made significant capital gains that year, from other transactions, to generate a lot of cash. These other assets are, solely, his $($good prenup agreement!$)$

What do you advise Alice to take $$ the ABC stock or the XYZ common stock? And, why? Ted says, $$it is her choice $$ that$$s the way our marriage has always been...that$$s why I want out!$$