European Stars And Stripes (Newspaper) - September 25, 1988, Darmstadt, Hesse Page 20 the stars and stripes sunday september 25,1988 investor s guide by Bill Doyle q. I am turning Lay because our broker answers nether my phone Calls nor my letter. My husband and i set of gift o minors accounts for our three Chil Dren. Enclosed a the latest statement for one of thine accounts. You will so hit in reference id Bond it says your Security called More than 1 a month before the Date of the statement. Cite Yon ill Roe by this Doyle happened and Thoulin t we have been informed sooner a. Mosi Bondi have Call provi Sions giving companies that issued those securities the right to Call them in and pay Thorn Oft before maturity. A company will exercise a Call provi Sion and do just that when it has extra Cash on band or when in can Issue securities paying lower interest. The statement you sent along shows that. Among other securities held by the brokerage firm your daughter owned a s1,000 face value wind paying 11.625 percent annual interest and due to mature on Jan. 1, 2008. No doubt Hal Bond was issued some Lime ago when interest rates were higher than they arc now. These Days when interest rates arc lower Many companies arc Selling new Bonds at prevailing Tower rates and using the Money to Call in and redeem old Bonds. Let s say the company Hal is sued your daughter s Bond can sell new Bonds at 9.625 percent inter est. By raising Money Hal Way and calling your daughter s 11,000 Bond for Early redemption the company saves 120 annually. If your daughter s Bond was part of say a si00 million Bond Issue inc company cuts its interest expenses by $2 million a year. You can t fault a company for doing that but you can fault your broker and the brokerage firm for not alerting you to the Call. The Bond was paid off at s 1,000. That Money has Cefi sitting in the account earning nothing for your daughter since the Date the Bond was called. Meanwhile the broker age has had the use of the s 1,000. In your shoes i d Transfer those accounts to a different firm. O. The broker with whom we did business for � number or years left the Field logo into advertising and a new Man was assigned to our accounts. Bui we did t learn about the change until the name of the new account executive appeared on the brokerage statements which we gel quarterly in t that unusual a. Not really. Broken come and go. There is quite a Bil of la mover in Hal business. And lots of brokers have gone into other lines of work since the october Slock crash. However your new broker or his firm should have notified you at the Lime the change was made As a matter of Good business prac Tice and common Courtesy q. I am custodian for my three children s sift to minors accounts. When 1 receive interest checks from Bonds or other securities held in one of their accounts 1 apportion inc Money among All three and re invest it in each account is this the proper Way to handle it7 a. No the securities and Cash in each account was established. You re fracturing the rules by moving Money from one custodial account to the other. Business news Hopes fading for Market restart new York f ap1-Ihones have faded broken note investors will be con Lam that the end to this random rallies Anne a -51 Hope brokers lately on Wall Street for arty clop mint plating the first change of presidents soon 10 restart the stalled Stock Nonit. Since 1980, with All inc question about the end of summer and its tra Difei a future economic policies thai implies torpor Haven t done in. And analysis say a of course As the mood of caution and inc a Cal several weeks hold some serious analysts say Here is Al obstacles to any revival of enthusiasm ways Ai Hrece that the Market will put for stocks. Offa surprised first of All there is the impending first the Slock Markof for its anniversary of Black monday on oct. 19, ability to catch the a Milestone unlikely to whet investors appetites Tor taking new risks in the Slock Market. We re going to be bombarded from All sides with re Hastings recapitulation and backward looking forecasts said Justin Mamis an analyst Al Cowen & co. Secondly there is the nov. 8 election the outcome of which is hard to predict or anticipate. No matter whom the voters choose especially when there is agreement that a trend is firmly Lishco in inc present Case a neut trading Range trend. But if some sudden surge of Energy is going to bit the Market Many analysts say it s hard to Sec where it s going to conc from. As Edward Nicoski at Piper Saltray & Hopwood inc. Put in in a recent commentary we d like to be Able to say tha Tallie reactions Bil is just around the Corner but neither the conviction nor the technical evidence is at hand. the activity in the Market during the past week certainly seemed to Bear out that assessment the Dow Jones average of 30 industrials edged Down 7.47 to 2,090.68. The new York Slock Exchange composite Index dropped .41 to 152.38 the Nash a composite Index for the Over the counter Market Rose 1.08 to 384.99, and the american Stock Exchange mar Yalu Index was up .89 at 299.1 k. Icon the big Board averaged 140.23 wion shares a Day Down from 165.38 mi1liorrlwoelt before. The Market Hast Denany Long slug Gish spells in the past. Butt be wild action that has occurred for much orth.1980s has obscured them in Many investor1 memory. Car sales up in a skewed statistics Detroit a sales of cars produced in inc United Stales Rose 6.7 per cent in mid september Over inc same period last year in what some analysis believe is inc beginning of sales statistics reflecting the True healthy state of the automating Industry. Statistics comparing sales this summer and last have been skewed inc analysis argue by last summer s better than aver age sales. The summer of 1987 was a season of Cut rate financing Cash Back offers and other sales incentives. We re going to get to a Point where we have a More direct comparison with the year ago period said Aulo analyst Douglas Laughlin of Bear steams & co. Of new York City. Domestic car makers reported Friday they sold 170,988 cars in the sept. 11-20 period this year compared with 160,235 during the same Lime last year. Each period had eight Selling Days. White comparisons in August showed a slip in sales some analysts pointed to inc skewing effect of the summer 1987 incentives and argued the . Car and truck Industry was still Strong. This in a More normalized trend Laughlin said of the figures released Friday. Sates of cars and trucks Rose 9.8 per cent during the mid september period this year compared with the same time last year going to 267,509 vehicles in 198b from 243,613 inc year before. Of the big three Chrysler corp s sales Rose most during the period go. R pm _ it j14 3_ Iff sear. I going up 12.7 percent to 24,412 in mid sep tember of ibis year compared Wilh 21,710 last year. General motors corp s sales showed a 7.1 percent increase to 85,354 cars in the Middle part of the month this year com pared Wilh 79,675 cars during the same period last Ford motor co. Reported a 3.4 percent Rise in car sales during the period in creasing to 48,840 from 47,228. 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