Word: marketed
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Dates: during 1980-1989
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...heaviest blow to the market came Friday afternoon. In a three-paragraph statement, UAL said a labor-management group headed by Chairman Stephen Wolf had failed to get enough financing to acquire United. Several banks had apparently balked at the deal, which was to be partly financed through junk bonds. The takeover group said it would submit a revised bid "in the near term," but the announcement stunned investors who had come to view the United deal as the latest sure thing in the 1980s buyout binge. Said John Downey, a trader at the Chicago Board Options Exchange: "The airline...
Some safeguards installed in the market after the 1987 crash may have helped cushion last week's fall. In Chicago the Mercantile Exchange twice halted trading in S&P 500 futures contracts, which represent the stocks in the Standard & Poor's 500 index. The automatic cutoffs, or "circuit breakers," slowed the contracts' drop. In 1987 parallel free falls in New York and Chicago, which are linked by computerized trading programs, had aggravated the collapse. But last week some Chicago traders claimed that the stoppages in futures trading restricted the ability of some investors to hedge their losses, forcing them...
Many investors, especially short-term speculators, were badly shaken. The biggest losers were Wall Street arbitragers, who make money by buying the stock of takeover targets and selling it at a higher price when the deals go through. The high anxiety about the junk-bond market sent the stocks of takeover targets plunging across the board. "The arbs got their heads handed to them," said Anson Beard, the chief trader for Morgan Stanley. "Very few anticipated that the UAL buyout could fail." Small investors suffered less because they have been less active in the market since the 1987 crash...
...market drop echoed around the world. In Tokyo, Noriko Hama, a senior staffer at the Mitsubishi Research Institute, warned that "it could be very hard to stop" the Wall Street plunge from sending ripples through foreign stock exchanges. Tokyo's volatile Nikkei index fell 445.02 points last Thursday, its sharpest drop since June. The index rebounded 320.97 points on Friday to close at 35,116.02, down 93.33 for the week...
...many investors, the most disturbing aspect of the Wall Street slide was its breathless speed. "We have a history of market bubbles and panics," says Allen Sinai, chief economist for the Boston Company Economic Advisors. "But because of the advance in communications, corrections that used to take days, weeks or months now take minutes. Any positive or negative events get communicated in seconds." Sinai added that while "a drop of 190 points is shocking and a source of great anxiety and nervousness, it doesn't suggest that the sky is going to fall. The lesson of 1987 is that financial...