Word: sec
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Dates: during 1960-1969
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Illusory Value. The SEC investigators were disturbed most that the market's safeguards for small investors seem inadequate and that its devices for moderating market swings often sharpen them instead...
...highest priority" need for reform, said the SEC group, centers in the "over-the-counter" market in unlisted issues, where the investigators accused some brokers and order clerks of "indifference, incompetence and venality." Prices on this market are published by the privately owned National Quotation Bureau, Inc. in daily "pink sheets" that brokers and bankers see but small investors generally...
While praising the "conscientious" bureau, the SEC report said: "In case after case, broker-dealers have abused the system by inserting fictitious quotations in connection with worthless securities to give an illusory value." One broker-dealer firm, for example, arranged to list fictitious quotes for the shares of Diversified Funding, Inc., while trying to push those shares to its own customers...
...commission markups vary greatly: on one selected day in January 1962, this variance alone caused Bank of America common stock to range in price from $61 to $64.25 and Pacific Power & Light to range from $56.25 to $60, depending on where the investor tried to buy the stock. The SEC group wants to put the National Quotation Bureau under SEC control, open its reports to the general public and let investors know the wholesale prices that dealers are paying...
...Immunity. Turning to the haven of the small investor, the SEC group charged that the odd-lot market is controlled by a "duopoly" of two Wall Street wholesalers, Carlisle & Jacquelin and DeCoppett & Doremus. In 1951, said the SEC, the two got together and fixed the extra charges that small investors have to pay above and beyond the regular commission for buying odd lots-1210 per share on stock priced up to $40 and 250 per share on costlier stock...