Word: marketing
(lookup in dictionary)
(lookup stats)
Dates: during 1950-1959
Sort By: most recent first
(reverse)
When the 1929 crash came, the closed-end shareholders were forced to dump their shares in a sinking market at prices that had no relation to their real value. Their companies went down to disaster-while the mutual funds rode out the storm. The debacle of the closed-end trusts was helped by all sorts of financial jiggery-pokery; in some companies, officers unloaded their own holdings of shaky stocks on the trusts...
...growth stocks. ¶ The growth funds, which are concerned not with dividends but with long-term capital gains (M.I.T.'s own growth fund). ¶ The balanced funds (Philadelphia's Wellington Fund), which keep their money in both stocks and bonds and shift the balance as the market changes. ¶ The income funds, liked by elderly or retired investors, which concentrate on high-yielding stocks (Manhattan's National Securities...
Says M.I.T.'s Robinson: "Within their range, mutual funds can fit the need of almost any investor." They can also find a host of critics. Many critics charge that the funds, along with other institutional buyers, have needled the roaring bull market to artificial highs, that their constant buying, chiefly of blue chips, has helped create the present shortage of stocks. The funds' answer: they hold only 3.4% of all stock on the New York Stock Exchange, and do not hoard it; they turn their shares over faster than the exchange as a whole...
More important is the charge that, in a falling market, millions of panicky, inexperienced shareholders would redeem their shares, forcing the funds to liquidate huge blocks of stock and collapse the market. But Robinson cites the record to show that just the opposite has always occurred: more fund investors turn in their shares in a rising market, fewer in a falling market, thus making the funds a balancing force. This may be the shareholder's form of profit-taking, but it is more likely a sign of his confidence in the funds; when the market is uncertain, he feels...
Once the trustees have taken a vote, the job of buying or selling stock is turned over to longtime Market Trader Almore Thompson, who works through more than 200 brokerage houses. In order not to upset the market in a stock that has captured M.I.T.'s interest, Thompson often executes orders over a period of several weeks or disperses them widely. M.I.T. never puts more than 5% of its assets into one company, or more than 25% into one industry. Since it buys for the long pull, it is not bothered by short-term fluctuations. "When the market turns...