Word: stocked
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Dates: during 1960-1969
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...events make Wall Street squirm as much as a public investigation of its affairs. Last week, as the Securities and Exchange Commission opened a wide-ranging inquiry into the fees charged to stock investors, it began to look like a warm-under-the-collar summer for the New York and American Stock Exchanges. For the first time since such rates were devised in 1792, the markets must publicly defend a system of minimum commissions that the SEC contends is capricious and unfair...
Even before the Washington hearings began, the exchanges had given a bit. In separate but almost simultaneous votes, they agreed to accept "volume discounts" of an unspecified amount on large stock transactions. They also recommended outlawing the controversial practice of "give ups"-by which a large stock trader (usually a mutual fund) directs the broker executing the order to split his commission with another brokerage firm. Often such fee splitting is a reward for unconnected services such as selling mutual-fund shares; the Government maintains that the custom undermines the whole case for fixed commissions. "Confused." As lead-off witness...
Asked why the commission on the sale of 100 shares valued at $80 a share was about two and a half times the fee on 100 shares of $17 stock, Bishop insisted that the former deal "involves significantly greater service for the customer." But when Rotberg inquired why the commission often varies on two orders involving identical amounts, Bishop ascribed the difference to more work by brokers when the number of shares traded is larger. Flourishing a chart of fees, Rotberg asked: "Why does the percentage of commission go down depending on the price of the security?" Replied Bishop...
Though last week's hearings barely scratched the surface of Wall Street's rate structure, broker witnesses shed some light on how much give ups cost them. Van Vechten Burger, managing partner of Manhattan's Pershing & Co., testified that his firm routinely handles stock orders from mutual funds for only 25% of the fee set by the Big Board, passes on 75% to other exchange members. Last year, he said, Pershing thus surrendered some $6.9 million of its $9.7 million take from mutual-fund and other institutional trading. Michael J. Heaney, a floor partner at the American...
...acres of land on which he envisions building a supersonic jet airport to serve the entire West Coast. Last week Hughes turned his attention eastward. Through his Hughes Tool Co., he offered to buy 2,000,000 shares of American Broadcasting Companies, Inc. or a 39% share of ABC stock that would cost him a cool...