The Pricing Of When-Issued Securities

The observed overpricing of when-issued securities appears to violate the law of one price in financial economics. Usually, when-issued shares sell at a premium over the original shares during the short time when both are traded. An analysis was conducted to determine whether the observed premium occurs because of: 1. a nonsynchronous trading problem, 2. the intensity of trading, 3. the exchange on which the shares are traded, 4. whether the shares are traded pre- or post-negotiable commissions, or 5. the nature of the demand for when-issued relative to the price setting of the specialist. The data consisted of daily trading volume and high, low, and closing prices for 140 splitting stocks in the CRSP period, July 1962 to December 1985. The results show that: 1. most orders for when-issued securities are buys, 2. these orders typically take place at the specialist’s ask price, and 3. accounting for this trading mechanism explains the positive premium on when-issued securities.
wss forex

Lamoureux, Christopher G.
Wansley, James W.

Full text: [The Financial Review] May 1989

forex signals

The Analytics Of The Intervaling Effect On Skewness And Ku

An analysis was conducted to determine how the skewness and kurtosis of securities’ returns are affected by the length of the differencing interval over which returns are measured. Hawawini’s (1980) analysis of this intervaling effect on log returns was shown to be incorrect, and the correct effects were derived. While Hawawini only considered log returns, this study derived the intervaling effect on the skewness and kurtosis of simple returns. The results demonstrate that the length of the differencing interval has very different effects on log and simple returns. In both cases, the effects on the returns’ skewness and kurtosis are substantial and also quite tractable. These results also allow for a reconciliation of some of the contradictory results published earlier on the intervaling effect.
amibroker forex

Lau, Hon-Shiang
Wingender, John R.

Full text: [The Financial Review] May 1989

forex signals

The Analytics of the Intervaling Effect on Skewness and Kurtosis of Stock Returns

An analysis was conducted to determine how the skewness and kurtosis of securities’ returns are affected by the length of the differencing interval over which returns are measured. Hawawini’s (1980) analysis of this intervaling effect on log returns was shown to be incorrect, and the correct effects were derived. While Hawawini only considered log returns, this study derived the intervaling effect on the skewness and kurtosis of simple returns. The results demonstrate that the length of the differencing interval has very different effects on log and simple returns. In both cases, the effects on the returns’ skewness and kurtosis are substantial and also quite tractable. These results also allow for a reconciliation of some of the contradictory results published earlier on the intervaling effect.
foolproof forex

Lau, Hon-Shiang
Wingender, John R.

Full text: [The Financial Review] May 1989

forex signals

Recent Canadian Experience On The Profitability Of Insider

The stock trading performance of different classes of insiders (senior officers, company directors, bank directors, and beneficial owners) was studied for the sample period 1980-1982. An analysis was conducted of the insider trading activities of firms listed on the Toronto Stock Exchange. The results show that directors and bank directors were compensated by more than the risk-adjusted rates of return from stock purchases during a stock market upturn. The results for bank directors were consistent with the findings of Baesel and Stein (1979). In Canada, there was a change in the laws on insider trading after the late 1960s. In the 1980s, stiffer penalties in the form of fines and prison terms were introduced. In spite of the stiffer penalties, abnormal gains by insiders persisted.
td forex

Lee, Moon H.
Bishara, Halim

Full text: [The Financial Review] May 1989

forex signals

Recent Canadian Experience on the Profitability of Insider Trades

The stock trading performance of different classes of insiders (senior officers, company directors, bank directors, and beneficial owners) was studied for the sample period 1980-1982. An analysis was conducted of the insider trading activities of firms listed on the Toronto Stock Exchange. The results show that directors and bank directors were compensated by more than the risk-adjusted rates of return from stock purchases during a stock market upturn. The results for bank directors were consistent with the findings of Baesel and Stein (1979). In Canada, there was a change in the laws on insider trading after the late 1960s. In the 1980s, stiffer penalties in the form of fines and prison terms were introduced. In spite of the stiffer penalties, abnormal gains by insiders persisted.
db forex

Lee, Moon H.
Bishara, Halim

Full text: [The Financial Review] May 1989

forex signals

Evidence Of The Nonstationarity Of The Variance Rate Of Ret

A study was conducted to test for the stationarity of the variance rate of return of 150 New York Stock Exchange (NYSE)-listed common stocks. The sample consisted of NYSE-listed common stocks from June 15, 1981, through August 21, 1981, and October 4, 1982, through December 14, 1982. Two estimators of the variance rate were used. One estimator used returns data, and the other incorporated the range of prices over the period. The results show that the variance rate of return was not stationary for most of the stocks studied. There was a median change of 100% over a period of 1 1/2 years. The degree of change decreased as the interval between estimates was shortened, as did the extent to which the variance rates of different stocks changed in the same direction. The size and direction of the change were not strongly related to the trading frequency of the stock.
dbs forex

Callaway, Richard E.

Full text: [The Financial Review] May 1989

forex signals

Evidence of the Nonstationarity of the Variance Rate of Return of New York Stock Exchange Listed Common Stock

A study was conducted to test for the stationarity of the variance rate of return of 150 New York Stock Exchange (NYSE)-listed common stocks. The sample consisted of NYSE-listed common stocks from June 15, 1981, through August 21, 1981, and October 4, 1982, through December 14, 1982. Two estimators of the variance rate were used. One estimator used returns data, and the other incorporated the range of prices over the period. The results show that the variance rate of return was not stationary for most of the stocks studied. There was a median change of 100% over a period of 1 1/2 years. The degree of change decreased as the interval between estimates was shortened, as did the extent to which the variance rates of different stocks changed in the same direction. The size and direction of the change were not strongly related to the trading frequency of the stock.
forex newsletters

Callaway, Richard E.

Full text: [The Financial Review] May 1989

forex signals

A General Stationary Stochastic Regression Model For Estima

A beta regression model was proposed in which the coefficients follow a general class of stationary stochastic processes. The procedure identified the processes and estimated the parameters of the model simultaneously from the information in the return series. The returns of each of the Dow Jones 30 securities were analyzed over 60-month estimation periods. The betas of 5 of the securities were nonstationary and did not seem to follow a particular form of nonstationarity. The conclusions of many earlier analyses may be suspect because they were based on procedures tailored to the adoption of a specific form of beta nonstationarity. Therefore, they were based on an erroneous a priori assumption regarding such form. The ordinary least squares model also was found to be quite robust, providing reliable beta and intercept estimates not materially different from the more complex procedure with 25 of the return series.
gfx forex

D’Souza, Rudolph E.
Brooks, LeRoy D.
Oberhelman, H. Dennis

Full text: [The Financial Review] May 1989

forex signals

A General Stationary Stochastic Regression Model for Estimating and Predicting Beta

A beta regression model was proposed in which the coefficients follow a general class of stationary stochastic processes. The procedure identified the processes and estimated the parameters of the model simultaneously from the information in the return series. The returns of each of the Dow Jones 30 securities were analyzed over 60-month estimation periods. The betas of 5 of the securities were nonstationary and did not seem to follow a particular form of nonstationarity. The conclusions of many earlier analyses may be suspect because they were based on procedures tailored to the adoption of a specific form of beta nonstationarity. Therefore, they were based on an erroneous a priori assumption regarding such form. The ordinary least squares model also was found to be quite robust, providing reliable beta and intercept estimates not materially different from the more complex procedure with 25 of the return series.
forex convert

D’Souza, Rudolph E.
Brooks, LeRoy D.
Oberhelman, H. Dennis

Full text: [The Financial Review] May 1989

forex signals

Fourth Quarter Boosts Staodyn’s Outlook

A fourth-quarter turnaround for Staodynamics Inc. of Longmont is helping to nurse the ailing medical products manufacturer back to health, after suffering losses in each of its first three quarters for fiscal 1988. And the cure arrived just in time. “We were worried that we’d get an offer to buy us out, a tender offer we did not want, and that someone could buy the company for $6 million to $8 million,” said W. Bayne Gibson, Staodyn’s chief executive officer. “We were going gang-busters a year ago. Then, after 11 quarters of gains, suddenly we had three quarters of losses and our stock went down from $4.25 to $2.50. We laid low for a bit.” (excerpt)
forex spot rates

McEachern, Sharon

Full text: [The Denver Business Journal] May 01, 1989

forex signals

Cash-Flow Crunch Threatens Boulder-Based Synergetics

Synergetics International Inc. of Boulder, a maker of environmental monitoring devices, is fighting a cash crunch that may threaten the company’s future. The company, which employs approximately 47 people, was unable to meet its payroll obligations in full last March, and officials conceded the company is struggling to make timely payments to creditors. Adding to the company’s woes is the qualified report of Synergetics’ condition by independent auditor Arthur Young & Co. in the company’s 1988 annual report. “The company’s recurring losses from operations raise substantial doubt about its ability to continue as a going concern,” said Arthur Young’s report, dated March 17. (excerpt)
forex clearing

Sample, James O.

Full text: [The Denver Business Journal] May 01, 1989

forex signals

Engel Sets Up New Start for American Guaranty

As expected, timber magnate Bruce Engel is moving some of his non-timber holdings into the corporate arms of American Guaranty Financial Corp. Engel, chief executive officer of lumber giant WTD Industries Inc., sold a Florida manufacturer of video and communications accessories to American Guaranty in early April. Engel effectively controls American Guaranty with just over 10 percent of the company’s stock and a post as chairman of the board. There has been speculation in the past that he planned to use American Guaranty as a corporate shell for many of his diverse investments, which range from radio stations to real estate development companies. (excerpt)
how to scalp forex

Manning, Jeff

Full text: [The Business Journal] May 01, 1989

forex signals

Restructuring Opportunities for Commercial Banks

Commercial banks are restructuring because of a number of structural changes in the formerly stable financial services industry. Such changes include: 1. deregulation, 2. increasing capital requirements, 3. disintermediation, 4. globalization, and 5. economic volatility. These changes have led to overcapacity, declining margins, and lower stock prices. There are 3 methods of restructuring. The first involves such changes in bank ownership as acquisitions, divestment, securitization, and sale-leaseback. The 2nd restructuring option involves changes in management, such as spin-offs. The equity structure can be changed in various ways, such as: 1. using stock options as a form of management compensation, 2. forming employee stock ownership plans, 3. substituting senior nonvoting instruments for common stock, or 4. reducing equity levels in cases of excess capitalization.
nfp forex

Rizzi, Joseph V.

Full text: [The Bankers Magazine] May/Jun 1989

forex signals

Legal Analysis Of Current Legislative Regulatory, And Judic

Hall Estate versus Commissioner (1989) established for estate tax purposes the value of the equity interest in Hallmark Cards Inc. that was held by the deceased, Hallmark’s founder and chairman of the board. The Internal Revenue Service contended that there was an understatement in the value of the deceased’s interest in Hallmark stock. The estate argued that the value of the stock for federal estate tax purposes was fixed at its “adjusted book value” by the various restrictions and options. The huge differences in the valuations of the government and the estate were attributable to the fundamental differences in approach with regard to certain transfer restrictions and in choices of appropriate comparable companies. The court concluded that the adjusted book value was appropriate and found many aspects of the government’s methodology to be flawed. The case is an excellent guide to a successful taxpayer valuation.
otc forex

Anonymous

Full text: [Tax Management Estates, Gifts and Trusts Journal] May/Jun 1989

forex signals

In Determining Estate Tax Value, Tax Court Refuses to Ignore Transfer Restrictions and Prices Set in Buy-Sell and Option Agreement

Hall Estate versus Commissioner (1989) established for estate tax purposes the value of the equity interest in Hallmark Cards Inc. that was held by the deceased, Hallmark’s founder and chairman of the board. The Internal Revenue Service contended that there was an understatement in the value of the deceased’s interest in Hallmark stock. The estate argued that the value of the stock for federal estate tax purposes was fixed at its “adjusted book value” by the various restrictions and options. The huge differences in the valuations of the government and the estate were attributable to the fundamental differences in approach with regard to certain transfer restrictions and in choices of appropriate comparable companies. The court concluded that the adjusted book value was appropriate and found many aspects of the government’s methodology to be flawed. The case is an excellent guide to a successful taxpayer valuation.
best forex companies

Anonymous

Full text: [Tax Management Estates, Gifts and Trusts Journal] May/Jun 1989

forex signals

The Deterrent to Dubious Corporate Behavior: Profitability,

A study examined stock market returns as a deterrent to dubious corporate behavior in the production of defective automobiles. Using the Wall Street Journal, 147 major recalls were identified in 4 periods – 1967-1968, 1972-1973, 1977-1978, and 1982-1983. The market’s responses to recalls were found to vary across time and companies. The deterrent effect of the stock market reaction was no greater than the deterrent provided by the direct costs of recall. For a large majority of the combinations examined, the production of defective autos appeared to be a profitable activity. Also, the consideration of managerial cognitive limitations substantially weakened the deterrent effect of the market reaction. There was little basis for thinking the market punished companies for recalls. The results suggest that the stock market was not a dependable deterrent to the production of defective autos. Shareholder losses did not dependably deter dubious practices in production.
gtf forex

Bromiley, Philip
Marcus, Alfred

Full text: [Strategic Management Journal] May/Jun 1989

forex signals

Nooney Realty Trust Had Loss of $405,954 in 1988

Substantial increases in real estate taxes and high vacancy rates caused by an oversupply of office space have hindered the performance of Nooney Co.’s real estate investment trust. The Nooney Realty Trust, formed June 14, 1984, incurred a loss from operations of $405,954, or 47 cents a share, for the year ended Dec. 31, 1988, according to the trust’s annual report. Despite the loss, total distributions to shareholders paid during 1988 were $415,980, or 48 cents a share. Nooney Realty Trust is a real estate investment trust (REIT) similar to a mutual fund that invests in real estate. Shares are traded on the NASDAQ National Market System. The trust allows small investors a chance to invest in commercial real estate, a long-term investment, with the liquidity of shorter-term investment options. (excerpt)
gts forex

Dwyer, Joe III

Full text: [St. Louis Business Journal] May 01, 1989

forex signals

G&K cleaning up in laundry business

[Thomas Postek] said there’s no way of knowing what would happen, but notes that “the record in this regard is not encouraging. . . . Our hope is that the next recession will be moderate enough to enable G&K and others in this industry to keep earnings moving ahead even if the gains are below past or targeted expansion rates. G&K appears to have flexibility to . . . (achieve) our hoped-for outcome.” [Robert Maples], [Larry Rader] and Postek all strongly endorse buying the stock, but while all three characterize G&K’s stock price as “reasonable,” they also allow that it isn’t cheap. More important, G&K is a company whose history seems to have been split in half – before and after 1983. That fiscal year spanned the depths of the last recession, depressing G&K’s net income from $2.4 million to a scant $576,000, on revenues that increased from $42 million to $47 million.
efx forex

Anthony Carideo
Staff Writer

Full text: [Star Tribune] May 1, 1989

forex signals

WPP Bids $730 Million for Ogilvy

With advertising operations in almost 50 countries, WPP serves a blue-chip list of clients that includes Citicorp, Kodak, Kraft General Foods, Nestle and Pepsico. Ogilvy Group, with comparably far-flung operations, serves companies such as American Express, Polaroid, Mattel, Beecham and Unilever. The offer, made late Friday in a letter sent by facsimile machine from Martin Sorrell, chairman of WPP, to Kenneth Roman, chairman of Ogilvy, was made public by Roman yesterday. The offer by WPP follows months of turmoil in Ogilvy’s stock price, after takeover rumors in which WPP has figured prominently. Since January 9, Ogilvy shares have risen 16.4 percent, from $27.50 to a close on Friday of $32.
historic forex

Full text: [San Francisco Chronicle (pre-1997 Fulltext)] May 1, 1989

forex signals

BUSINESS INSIDER

Since taking big stakes last year in Oakland’s American President Cos. and Chicago-based Santa Fe Southern Pacific, Itel’s motives have been the subject of widespread speculation. But it would be a mistake to assume the Chicago transportation leasing company intends to buy either company. That’s the impression left following lunch with President Rod Dammeyer, who describes both as merely investments that should provide substantial returns as their stock prices escalate. Itel’s role at American President, where the company has a $90-million, 18-percent stake, is far more passive than at Santa Fe, where its 17 percent position is valued at $550 million. No Itel officials serve on American President’s board, while Dammeyer and Itel Chairman Sam Zell are directors of Santa Fe. Itel’s relationship with American President is “”friendly,” Dammeyer says; but he terms it “”constructive” with Santa Fe. Itel’s profit potential at Santa Fe is huge: Its cost on its investment, which was acquired from Henley Group, is about $19 per share. Analysts estimate a broken-up Santa Fe is worth in the high 30s, and Dammeyer says Itel “”is in a postion to influence what happens” as quickly as possible.
dawn forex

Herb Greenberg

Full text: [San Francisco Chronicle (pre-1997 Fulltext)] May 1, 1989

forex signals