Options And Warrants
stock Options
An option is a legal contract
that gives you the rijit to buy or
sell a given number of shares of
Stock (usually 100) at a speci
fied price within a certain period
of time (usually nine months or
less). An option becomes worth
less if it expires prior to its exer
cise or sale.
• Investors may purchase either
call options, which convey the
right to buy a specified quantity
of stock, or put options, which
convey the right to sell a speci
fied quantity of stock.
; The advantages of buying call
or put options can be summar
ized, as follows;
! • Leverage: A small percentage
jnove in the price of the underly-
^g stock you have optioned may
result in a relatively large per
centage gain.
• Reduced Cost: The option
buyer can participate in the
movement of a stock for a frac
tion of the cost of actually buy
ing an equivalent number of
shares.
• Limited Risk: Risk is limited
to the amount originally invest
ed in the option, regardless of
moves in the underljdng stock.
Options can also help protect
capital. Puts can be purchased
to protect profits in stocks
which investors own but do not
presenUy want to sell. If an in
vestor feels that a stock's pros
pects are presently weak but fa
vorable over the long term, the
purchase of a put limits any
The Financial
Comer
mth
Marcus Butts
possible loss during its life
without eliminating the chance
to benefit from a stock price
rise. The investor consequently
receives downside protection
with an opportunity for appreci
ation.
Selling call options on owned
stocks is preferred to as
"covered writing" and should be
considered by investors who
want to maximize the return on
their stocks.
The potential benefits of cov
ered writing are: an increased
return on the current portfolio;
immediate cash income beyond
regular dividends; and reduced
downside risk in owning com
mon stock.
Index Options
Index options are call and
puts on indexes of stocks. The
options are traded on the New
York, American and Chicago
Board Options Exchanges,
among others. Broad-based In-
People On The Move
been employed by the N.C. Pro
bation and Parole Office in
Charlotte and during the past
two years he has been Probation
Officer in the Intensive Proba
tion program.
Waddell is married to Nelbra
Walden, a computer analyst, and
they live in Charlotte.
tatlve with the U.S. Social Se
curity Administration.
Waddell Sworn
In U.S. Office
David Lee Waddell has been ap
pointed as a United States Pro
bation Officer in the Western
District of North Carolina and
is assigned to the Charlotte Of
fice.
He was sworn in by the Honor
able Robert D. Potter, Chief U.S.
District Judge, in a ceremony in
the U.S. District Court at Char
lotte on August 15, 1988. He will
be performing investigation and
supervision for the U.S. Court in
the Charlotte office, which pres
ently serves four counties.
Waddell is the son of Mr. and
Mrs. J. Marshall Waddell of
Durham and is a graduate of
Hillside High School. He attend
ed North Carolina Central Uni
versity at Durham in 1977. He
graduated with a Bachelor of
Arts Degree in Political Science.
After graduation from college,
Waddell worked approximately
three years as a Public Safety Of-
flc'er for the Durham Po)lce De
partment. Since 1980 he has
Felicia Pine Is
Trade Expert
Felicia R. Pine has worked as
an international trade special
ist with the North Carolina De
partment of Commerce since
November 1985, assisting the
exporting efforts of companies
in the state.
Pine provides technical assis
tance and identifies foreign buy
ers and markets. Before joining
Governor Martin's administra
tion, Pine was an owner of a
construction cleaning company
in Charlotte.
She has worked as a manage
ment consultant with a large
consultant firm in Chicago and
as a service and claims represen-
Dr. Kendall
Named Dir.
At Winthrop
Dr. Robbie M. Kendall has re
cently been named the new di
rector of the Center of Excel
lence in Early Childhood
Education at Winthrop College.
The announcement was made by
Winthrop President Martha
Klme Piper.
Dr. Kendall assumed her new
duties at Winthrop on July 1.
She previously served as assist
ant professor of education at
Tennessee State University and
as coordinator of special educa
tion and rehabilitative services
for the university's Center of Ex
cellence.
Dr. Kendall earned her B.S.,
master of education and special
ist of education degrees at Wayne
State University. She earned her
Ph.D. from the University of
Michigan.
Charlotte Trade Expo Expected To Bring
Carolinas Businesses To Black Vendors
By HERB WHITE
Post Staff Writer
Corporations and minority
vendors will have an opportuni
ty to strike up business rela
tionships in Charlotte next
month at the Carolinas Minority
Supplier Development Councils
Trade Expo.
The event, to be held Sept. 29-
29 at the Charlotte Convention
Center and the Charlotte Marri
ott City Center, is expected to
bring in about 140 companies,
said Malcolm Graham, CMSDC
executive director.
The program, called Win/Win
'88 affords corporations and
vendors the opportunity to "get
together and exchange ideas," he
said.
"For so long, minority vendors
haven't been in the mainstream
of corporation vending. It's a
perfect setup to do so as well as
do your own program. It’s a key
marketing tool."
Local corporations spent at
least $427 million with minority
firms last year, CMSDC records
show, which is only 30 percent
of the real amount. Graham said
corporations, for various rea
sons, don't report annual spend
ing to CMSDC.
Graham said the corporate
community, ranging from small
concerns to giants like Duke
Power, IBM and AT&T have been
some of the Councils' biggest
supporters, increasing the num
ber of minority firms they do
"Both minority vendors and
corporations see the need in an
organization to better market
products," Graham said.
"Corporations have more diver
sified field of vendors to choose
from."
dexes cover a wide range of com
panies and industries, whereas
narrow-based indexes consist
of stocks in one industry or sec
tor of the economy. Index op
tions allow investors to trade in
a particular market or industry
group without having to buy all
the stocks individually. For in
stance, someone who bought oil
stocks which were about to fall
could buy a put on the oil index
instead of selling short shares
in half a dozen oil companies. (*)
Warrants
Warrants are convertible se
curities that do not pay current
income but allow their holder to
obtain an issuing company’s
common stock for a pre
determined price. They usually
must be converted within a
specified time, sometimes sev
eral years or more. ,
Since warrants are usually
cheaper than the common stock
for which they can be ex
changed, they can be purchased
to control large amounts of
common stock.
They are similar to listed stock
options in that their value is de
rived from price movements in
the underlying common stock.
If you have any questions
about options or warrants,
please write to Marcus Butts, c/
o The Charlotte Post, P. O. Box
30144, Charlotte. N.C. 28230.
(•) Barrons Dictionary of Fi
nancial Terms
Thursday. August 25, 1988 - THE CHARLOTTE POST - Page 3A
I I I I I I I I I I I 1 II I I I I I M
I I I I I I I I I I I I I I I I I I I I I I Ml I U JrfJJ
Local Stocks Of Interest[-P44^TI rhk
The
Charlotte
Post's
8/22
8/16
52 week
Voltunes
Divld
ends
Sym
Stock Name
Exc
Close
Close
Chg
High
Low
Close
AVG
PE
Amt$
Yld%
BLS
NY
39..00
40.00
-1.00
43.88
35.75
2958
3555
11.41
39.00
G.05
CCBF
ore
33.88
33.75
0.13
35.50
32.(X)
31
0
9.47
34.(X)
4.02
CAO
Carolina FrelglU
NY
21.25
22.00
-0,75
30.63
18.00
92
247
43.88
22.50
2.51
COKE
Ol'C
30.CX)
30.50
-0.50
34.00
20.25
240
370
-0-
31.50
2.93
DUK
Duke I^)wt•^
NY
-13.38
43.38
0.(X)
49.00
42.25
917
15229
9.79
42.7.5
6.8:1
!'1)0
i'aiiilly Dollar
NY
M.13
I3.(X)
1.13
14.50
8.r>0
4 18
(;2'i
14.79
1 1..50
2.27
I'lJ)
I''lcl(U rr.sl (kin
NY
22.H3
24.25
l.(i2
24.0.3
14.25
25.3
495
0
18..50
:i.oi
I'TJNC
orr
22.75
0.2!)
23.li3
23,00
1925
0
21.1.3
0
l-'VV
Warliovl.t
NY
38.(i3
39.2!)
().i;2
40,7!)
3.3..38
4!)0
(;k;
‘ l.‘ V.
.38,00
;i.!)2
|•'U1.NB
oTc:
10.88
I l.(X)
0.12
13.!X)
10.38
2!K)
478
3!>.48
12.(X)
.!)!>
IBM
IBM
NY
110.88
I 15.75
-4.87
129.50
103.25
1.19m
l.ini
12.77
1 10.88
3.97
JP
NY
35.25
36.38
-1.13
36.38
25.75
1000
992
14.99
30.63
3.63
LNCE
OTC
18.00
18.13
-0.13
20.00
16.75
121
216
14.75
17.88
.9*1
NCB
NCNB
NY
27,00
27.63
-0.63
29,13
17.50
1935
8681
12.39
21.13
3.41
NUE
NY
43.50
44.50
-1.00
47.00
36.50
60
684
15.07
37.75
.92
PNY
NY
21.75
22.25
-0.50
24.50
19.13
204
100
7.53
21.63
6.80
RJR
NY
50.13
50.50
-0.37
53.50
44.00
3009
3584
10.08
47.50
4.39
RSTO
Roses Stores
OTC
8.25
8.00
-0.25
12.25
7.75
2
19
12.89
8.50
.48
RDK
AM
21.00
20.38
0.62
22.88
15.75
48
55
11,54
19.63
2.71
S
NY
35.00
35.50
-0.50
39.88
32.25
3799
4417
8.74
35.50
5.71
SONO
OTC
29.25
28.75
0.50
33.50
19.50
155
247
16.81
28.25
.62
SMI
NY
32.25
31.75
0.50
38.75
27.50
72
359
9.60
33.50
3.10
SNW
AM
7.63
7.63
0.00
9.13
6.13
50
12
-0-
6.25
-0-
U
us Air
NY
34.75
36.25
-1.50
28.00
28.00
379
1306
9,05
33.63
,34
Interest Rate Trends
Type Rate
Term
8/17/88
8/10/88
7/20/88
5/18/8f
Prime Rate
10.00
9.50
9.50
9.00
Dean Witter CD
lyr
8,40
8.20
8.00
7.70
Dean Wlt:*rCD
5yr
9.25
9.15
9.00
9.00
T-Bllls
3 mo
7,24
7,22
6.90
6.28
T-Bills
i yr
8.25
8.16
7.71
7.33
T-Bonds
30 yr
9.42
9.35
9.23
9.29
GNMA (10 yr Avg life)
10.41
10.34
10,23
-0-
Financial
Updates
Minority
Tourism
Conference
By JANICE M. MAGONA
NNPA Correspondent
The National Association of
Black and Minority Chambers of
Commerce (NABMCC), aiming to
increase the visibility of Black
business in this growing market,
recently announced that it is
gearing up for the Third Annual
Minority Conference of Tourism,
in New Orleans, Louisiana
between September 21-25.
NABMCC represents 71 cham
bers of commerce with more
than 150,000 members. It was
established to promote the
growth and development of mi
nority entrepreneurship in the
travel, convention and tourism
industry.
Speaking on behalf of the
group, Oscar J. Coffey Jr., presi
dent and Chief Executive Officer,
said this conference will be a
major event In which Black en
trepreneurs would not want to
miss the opportunity to partici
pate. He said NABMCC antici
pates attracting approximately
500 diversified business owners
from across the country.
According to U.S. Travel and
Tourism Administration, the
tourism industry reached $260
billion in 1986. Payroll income
generated by tourism amounted
to $58 billion and tax revenue
from tourism was more than $33
billion. Blacks and other minor
ities accounted for over $25 bil
lion of the $260 billion.
David L. Edgell, Director of the
Office of Policy and Planning,
U.S. Travel and Tourism Admin
istration said that tourism has
been growing rapidly in the past
several years and the prospects
for future growth are impressive.
"Tourism, as one of the fast
growing segments of the U.S.
economy, can be a development
catalyst for widening and diver
sifying the economic base of mi
nority communities. As the
1990's approach. Black and mi
nority community leaders
should concentrate even more
effort on business development
In tourism to take advantage of
the opportunities this industry
offers," he stated.
Edgell urged Black and minori
ty Chambers of Commerce to
continue to be in the "forefront"
of developing inner cities and
new communities.
Graham
business with.
"It's not a handout," he said.
"These corportations really
want to make an effort to do
business with minority ven
dors."
Minority representation is im
portant, Graham said, stressing
that trade expos are a good first
step in getting small businesses
bigger and better accounts.
'The efifort is there as far as
the corporations are con
cerned," he said. "What we need
is more participation from ven
dors with the council."
The number of vendors and
corporations joining the
CMSDC has increased since last
year, the result of an organized
recruiting drive by the Councils.
Fact vs. Fiction
Before you advertise, make sure the circulation fig
ures are telling you the truth.
Ask if they’re verified by the Audit Bureau of Cir
culations.
ABC is the largest and most experienced circula
tion auditing organization in North America and in
the viiorld, providing independent, trustworthy facts
and figures for more than 5,000 member adver
tisers, advertising agencies and publishers.
We’re proud to say our circulation is regularly au
dited by ABC specialists. We would be glad to send
you all the facts.
Facts. Not fiction.
Cfjarlotte
If ABC Says It,
You Can Bank On It.
— Support Our Advertisers =
SHOP THE FOSTil
WeVe Moved
Formerly of Hair Plus in Belk Uptown
are now located at The Royal Treatment
Hair Salon.
4'^
Chris Baxter
L
James Speed Wende Reid
1331 LaSaUe St.
392-8388
*Plans for Downtown Salon are still being proposed
♦ ACCIDENT & INJURY CENTER^
X BEATTIES FORD RD. ♦
^ Northwest Charlotte J
: I
^ Chiropractic Physician ♦
X DR. DENNIS L. WATTS|
I :
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X .... 1
2501 Beatties Ford Rd.
Charlotte, N.C.
Call
393-3333
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