Bleeding Edge of Technology
Article Abstract:
The lead underwriters of new issue stocks are suffering loss of credibility when their stocks suffer major reversals. Many investors are blaming the underwriters for issuing the stocks at such high prices. Hambrecht & Quist (H&Q) are trying to aid some of the companies they sponsored to a turnaround. They believe now they made some mistakes in the frenzy of the market. Blame is also attached to rapacious venture capital investors who could not wait to unload their holdings for the sharp slide in new issues prices. Underwriting was off significantly in the final quarter of 1983. H&Q is now looking toward Swope for venture capital and new issues.
Publication Name: Barron's
Subject: Business, general
ISSN: 1077-8039
Year: 1984
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'Good Luck, Heroes'
Article Abstract:
Multi Vest Securities Incorporated is being charged with fraud by the SEC. The major problem arose with their behavior in selling bonds issued by the Washington Public Power Supply System (WPPSS). The bonds were sold at ten to twenty per cent over their fair market price under fraudulent conditions. Clients were never warned of the bond's imminent default. Misleading advertising was also used to lure customers.
Publication Name: Barron's
Subject: Business, general
ISSN: 1077-8039
Year: 1984
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