European Stars And Stripes (Newspaper) - April 12, 1987, Darmstadt, Hesse Page 20 the stars and stripes sunday april 18,1987 investor s guide business news q. To order Losa on Rommel flon when 1 bought shares of Tad Rohnl re a wently i did not id in Roach broker. Instead pm by dwelt unit to to Ibe. A h so a pmed my Wei us a nude Onishe Day the Shure Price in a an la Lime Bugh. The Price dropped Sharp the Ixl Day. Would i Hare to pen Teller Dvis cd id buy through my broker so Doyle i anti late hid bettor control pm the timing of my Purchase a. H really would t have made any difference. When you invest in a Mutual fund you buy shares at the Price established Oiler your order reaches the fund whether you Send i yourself or through a broker this Forward pricing proce Dure was put into effect by these purities and Exchange commis Sion in 1969. All Mutual funds Are required to me it and to Price their shares at 4 ., Eastern Lime each business Day. Some Doil More often. Assuming your Purchase order reached the Mutual fund in and Vance of the pricing you bought at the Price established Al 4 If your order arrived after that you got the next Day s Price. If you placed your order through a broker the brokerage firm would have been Able to wire your Purchase to the Mutual fund thurby saving Lime lost in the mail. But the Forward pricing procedure would still have been used now the bad news. You did save any Money by sending your Purchase order and Check direct Lylo the underwriter the outfit distributing the fund s shares. When a Mutual fund has a Load charge All buyers of the fund shares must pay that commission. That s a provision of the invest ment company act the principal Federal legislation covering Mutual funds. You cannot Duck that charge by bypassing brokers. You paid a commission whether you Snow it or not q. 1 reinvest the dividends on my Knittl fund Barc. The dividends it paid quarterly and 1 notice thai Ibe statements 1 Imhee Lisl the name of the broker through whom i nuke my original Purchase. My dividends of course Are use to Purchase additional fund Sham does any of that Money go to the broker a. That depends on the particular Mutual fund. The vast majority of Mutual funds allow shareholders to reinvest dividends at asset value without any commission charge but an increasing number of Load Mutual funds charge offering Price asset value plus commis Sion on reinvestment. When that s the Case the broker who made the original Sale gets a piece of the commission. Also Mutual funds with 12b-l plans and or redemption fees sen Money along to brokers who have sold fund shares. That Money comes out of the fund assets and reduces the value of every share Holder s investment. To learn if your Mutual fun passes any of your reinvestment Money on 10 a broker you la have to study your fund s prospectus. Stock Market becomes hostage to Money Market fluctuations new York Cap Wall Street which maintained its Independence Dur ing its first Quarter rally has became in the second quartet an almost slavish Fol lower of the foreign Exchange and credit markets riling and falling along with the Dollar and Treasury Bonds. The Dow Jones average of 30 Industrial stocks began last week by climbing above 2.400 for the first time. Then in plunged More than 44 Points Rose More than ii dropped another 33 and finished fractionally lower with ill fluctuations each Day attributed to changes inthe Dollar and Bonds. The average ended the week Down 51.56 Points at 2,338.78. The new York Stock Exchange composite Index had a decline of 4.48 for the week closing at 165.72, while the Market value Index at the american Stock Exchange was Down 2,38 to 338.08. Volume on the big Board averaged 177.93 million shares a Day against 191.13 million the week before. As the Dollar fell last week so did Treasury Bonds and As they dropped the Stock Market followed suit the Stock Market has become hos Tage to the other Market said Newton d. Tinder a senior vice president with Stock pulse by in Ltd pm ts1�t7 group inc. But this trend was a marked reversal of the divergent paths taken by the two markets during the first Quarter in the last few months Bonds have done nothing and Stock have taken off said Ralph j. Acampora a Siock Market analyst with Kidder Peabody & co refer ring to the fact that the Dow Jones Industrial average soared 475 Points from january to March while Bond prices were stymied by an Uncertain Economy and the possibility of interest rate hikes. Acampora said the Stock Market was not ignoring the problems in the credit markets or the decline of the Dollar Dur ing its rally but with the currency s sleep drop in the past few weeks it All came to the it is the possibility of the Federal Reserve Board raising interest rates As a Way to help the Dollar to raise interest Rales the fed would withdraw reserves from the banking sys tem and with fewer dollars available there is less liquidity or Cash available la investors. Taking away that Money is taking away the very same liquidity that s driven the Stock Market so handsomely in the first Quarter said Hugh Johnson a aim t Conan to Mil Tam by vet Suskuk Truitt total Oshiar Oona Pimm sow mob att r taint by Dunt vol Clou Eoanu p e my h t 1,00 440 of 5.758,900 31 301 11.0 3,211.500 us 3.45 10.0 of 2.612.100 86 bit 100 4.4 2,331.000 119 6.75 210 13 zj18.400 149 7.11 t�,0 3.0ijm.too to 47.0 0. J.i4b.oo 41h l.mxt.0 4.5 1.15 21.0 5.1 Eft a do of cd in Wogl Baiani Alu a " a cd a Tamimi of km670,400 2h i 0,11 34.0 607.300 44634,000 4h 401,500 14 w2.400 t1� s4s.wo 37340600 24 in Plum one Brov Iso o.�1401.33 ibo 277,500 11 1 174,101 11 Stock Phuol 1.911.000 231,740,100 7 Mem it met not Clung la Eti Jhb c am a Chi Hutu Large a he chum on in w firm p e ru24 s 5 149 13.0 m upon cum in n e mip eyed t is t 1 2b 79.0 9.4 Iok 4 0.7 125.0 Bitite n so 25.11 359h 4 1120 32.0 0-1 39 t 4 o.w6md0.541 t 3bt 2.08 200 4.5 85k 3 a 1.0 1.6 lb9f, � 3k 1.m17u1.0124 3 154 19.0 1.4 7j t by 12t iad h�unl4iinytlnu in Flun we Onwin 81.0 1.63 27.0 of 0.10 45 0 1.11 .57 As 2.1 senior vice president with first Alban corp. In Albany , the reason the Stock Market is Ner Vous is it s got to have the fuel to run he said or there s an inkling thai liquidity will go away the Market reacts and investors also Are concerned about the Prospect of action by the fed because higher interest Rales would translate into higher costs for corporations and there fore lower profits. Some analysts expressed concern about the effect that a continued drop in the Dol Lar could have on Stock prices calling Wall Street volatile and Hude Garde Zagorski a Market strategist with Prudential Bache Securi u inc., said the dollar1 decline is being used As an excuse for profit taking. The Market needed a shakeout. And people find Good reasons for one she said. Now the most convenient reason is the however Shir did not dismiss investor concerns adding no one wants to seethe Dollar in a free fall the Reagan administration has sup ported the idea of a lower Dollar to help ease the massive . Trade said that during the Market s big run up investors were agreeing with that stand. Now with the Dollar continuing Tofall they re More concerned. Japan Trade surplus shows huge increase Tokyo up with Trade pressure from its allies at fever pitch Japan said Friday its global Trade surplus reached a record $89,77 billion in the 1986 fiscal year climbing by More than half Over the previous year. The surplus recorded in the year from april 1, 1986. To March 31, 1987, Well after the rising yen was to have begun trimming it could add to already stiff upward pressure on the yen which climbed to a new postwar High Friday. The finance ministry said the world wide Trade imbalance Rose to s89.77 Bil lion Over the ss2.6q billion posted i fiscal 19ss. The surplus with the United states climbed to a record j52.02 Bulion. Fund prices from Page 20 Tiffa l�8in, i. 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