Word: investors
(lookup in dictionary)
(lookup stats)
Dates: during 1970-1979
Sort By: most recent first
(reverse)
Setting Up SIPC. A securities-industry task force and the Securities and Exchange Commission last week presented separate bills to Congress. Both bills would establish a Securities Investor Protection Corp. (abbreviated SIPC and pronounced sipic) that would insure each investor's account for as much as $50,-000. SIPC would be empowered to raise an initial fund of $75 million, and eventually $150 million, from brokers. In a pinch, it could also borrow up to $1 billion from the Treasury to pay off customers of insolvent brokers; it would repay the loans by assessing solvent brokers...
...plan would benefit mostly the one active investor in every ten who buys stock on margin. Whether they realize it or not, margin buyers agree to let their brokers use their stock as collateral on bank loans, which must be repaid before the stock can be sold and the cash returned to the customer. The insurance plan would also bring greater peace of mind to investors who leave cash and fully paid securities in their accounts. Brokers are supposed to keep customers' cash and paid-up stocks separate from their own assets, but Phillip Loomis, general counsel...
...point you failed to mention in your excellent article on the stock market [May 25] was the effect of the high surcharge on commissions for the small investor. By discouraging the little man who would like to share sincerely in American industrial progress, the marketeers will soon find themselves facing institutions only. Then we will see a battle of the giants interested only in outsmarting each other. Trade-offs on huge blocks of shares may be common, and eventually brokers will disappear...
...practice that the SEC might do well to curb. Budge spoke out strongly in favor of proposed legislation to create a federal insurance corporation for brokerages along the lines of the Federal Deposit Insurance Corporation for banks. Congress seems eager to set up something of the sort to prevent investors from getting stung if their brokerage houses go over the brink. Thus, for all the pain it has caused, the long bear market may lead to new rules to protect the investor, and establish a stronger and better-run brokerage business...
Some of the episodes are already familiar: the mutiny led by Editor Clay Blair and Wall Street Investor Marvin Kantor against Culligan, which ended with all three walking the plank; the fling at "sophisticated muckraking," which ended in the Post's losing a $460,000 libel suit and some of its good reputation; the advent of Ackerman, who arrived like the U.S. Cavalry, complete with his own bugle call-"I am 36 years old, and I am very rich. I hope to make the Curtis Publishing Co. rich again...