Newspapers / North Carolina Wesleyan University … / Dec. 4, 1987, edition 1 / Page 2
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PAGE 2 — THE DECREE — DECEMBER 4,1987 OFFICIAL STUDENT NEWSPAPER OF NORTH CAROLINA WESLEYAN COLLEGE Co-Editor-ln-CTilef—Tom Rivers and Mike Tnibcy Staff Reporters—Melamc Bolling. Mark Crum.' Sharon Evans, Pam Hanrison, Dell Lewis, Wav nc Martin The Decree is located in the Student Union, N^nh Carolina Wesleyan College, Wesleyan College Station, Rocky Mount, NC 27801, Policy ii determined by the EdiUinal Board of 7he Decree Rcpublication of any matter herein without the express, eonseni of the Editorial Board ii striitly forbidden. The Decree is composed and printed The Spring if ope Enterprise, ptibljshed A? not necessarily refleet those of North Caro^ lina Wesleyan College. TO fcANlt Xou K iVitv\tY'Ct\te7uH Find good outlets for easing tension There’s only two more weeks to go until the Christ mas holidays. And in those two weeks there will be tre mendous amounts of work to be given to our Professors. With all this work to do and the pressure to do it right, we all will need some kind of outlet. In the past a lot of school property has been destroyed in the process of letting off steam. Not only is this wrong but unfortunately everyone ends up paying for it in the long run. There are many better al ternatives than physical de struction of property. One of them is doing something physical such as playing bas ketball, football, running, etc. Even though it may be too cold to go out doors, be crea tive and think of something that can take your mind off the books. And if you’re going to hit the bottle, like some people already have, please use this in moderation. You must know when to say when. You’ll not only please your neighbors by saving them the hassle of dealing with you, but you’ll also be better off in the long run where your grades are concerned. Stay loose, but stay cool. Merry Christmas From the staff of /> Wl'LTxlP Their stocks fare better Students survive crash CoUege money managers say they’re still trying to dig out from under the debris of the precipitous “Black Monday” stock market crash of October 19, but some students seemed to have done pretty well, at least on paper. In an investment game designed to teach students how to manage stock holdings, for example, Babson College (in Ma.) students’ “portfo lio” dropped “only” 5.7 percent in October while the real stock market plunged nearly 30 percent. Professor Bob Kleiman reports. Business departments often let their students manage real or imag ined stock portfolios, learning to “buy” or “sell” stocks to maxamize “profits.” Inevitably, some of the student investment clubs did worse than oth ers in the crash — during which The Dow Jones Industrial Averages fell a record 508 points in one day — and in the wild swings of the market in subsequent weeks. At the University of Nebraska, for instance, business students lost a real $43,000 from a portfolio worth $300,000 before Black Monday. Yale’s student investment club lost about $100,000 in the crash. And campus business managers didn’t do any better. Many colleges own portfolios that include stock holdings, and use the profits to pay for capital improve ments and to provide for student fi nancial aid. Most campus portfolio managers, however, noted colleges typically are conservative investors, and that there the crash consequently may not hurt them in the long run: The University of Pennsylvania lost $40-50 million during the crash, a 15 percent drop. The loss could have been worse, but the university — sensing the stock market would go through a “correctional phase” — had sold a significant percentage of its stock holdings prior to Black Monday. Penn State lost less than 10 per cent of its $130 million endowment, and officials there also say the pinch should not affect daily operations. “We will still be able to fund all programs,’’said senior vice president for financial operations Steve Gar- ban. The University of Southern California’s $160 million stock hold ings dropped a 13 percent, or $20.8 million, on Black Monday. Duke pos^oned issuing tax-ex- en^)t bonds that would help finance several capital improvement pro grams, figuring the bonds would be hard to sell now. ‘The volatile stock market could scare bond investors,” said Maik Reeder, and E.F. Hutton broker in Durham. Faculty members nearing retire ment will bear the brunt of the stock market’s volatility, and critics of higher education’s largest pension companies said the pension manag ers are too rigid in their planning. The Teachers Insurance Annuity Association and CoUege Retirement Equities Fund (TIAA-CREF) de layed establishing other investments for faculty members, denying them a port in the stock market storm. CREF funds lost 18 percent of their value during October as the company explored new and more flexible investment vehicles. College fundraisers say the market’s violent swings have dimin ished prospects for year-end giving and capital improvement campaigns. The University of Arizona, for ex ample, has delayed construction of football stadium skyboxes because the shaky market has raised concerns about financing the project. Students interested in working as brokers will face stiff competition for jobs and may have to work in related fields until the stock market stabi lizes, a University of Iowa job place ment officer said. “Until the stock market recoups, the hiring that investment firms do will be limited and highly selective,” Nancy Noth said. “It should make students take a strong look at what they’re doing right now.” Babson students, though, are happy about “The Wall Street Game,” the investment game they’ve been playing since early September. “The product is quite good, par ticularly for intro courses. It’s realis tic.” Kleiman said. The game, marketed and devel oped by Babson alumnus and former stockbroker Tim DeMello, allows students to buy, sell and trade stocks in the American, OTC and New York stock exchanges. Although no real money changes hands the students are given mock $100,000 accounts to “invest” Students call a toll-free telephone number at DeMello’s office to ar range immediate access to the New York based exchanges. “It’s direct duplication of what brokers do,” said DeMello. “The students can get to manage portfolios and the universities can provide hands-on education without incurring liabilities,” DeMello ex plained. Other schools use closing prices from The Wall Street Journal to de termine how well a student manages a portfolio, but closing prices don’t indicate the value of a stock when it is purchased or sold, he added. “They can do anything that’s done on Wall Street,” DeMello said of Babson students. Although Babson is the only col lege in the nation currently using “The Wall Street Game,” DeMello says several other schools have signed up for the spring semester and more will use the game next fall.
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