( S ( CC But ) ( NP-SBJ ( NNS researchers ) ) ( VP ( VBP say ) ( SBAR ( S ( NP-SBJ ( NP ( DT the ) ( NN drug ) ) ( VP ( VBN called ) ( S ( NP-PRD ( NNP FK-506 ) ) ) ) ) ( VP ( MD could ) ( VP ( VB revolutionize ) ( NP ( DT the ) ( NN transplantation ) ( NN field ) ) ( PP-MNR ( PP ( IN by ) ( S-NOM ( VP ( VBG reducing ) ( NP ( JJ harmful ) ( JJ side ) ( NNS effects ) ) ) ) ) ( CC and ) ( PP ( IN by ) ( S-NOM ( VP ( VBG lowering ) ( NP ( NN rejection ) ( NNS rates ) ) ) ) ) ) ) ) ) ) ) )

But researchers say the drug called FK-506 could revolutionize the transplantation field by reducing harmful side effects and by lowering rejection rates


( S ( NP-SBJ ( NN Rejection ) ) ( VP ( VBZ has ) ( VP ( VBN been ) ( NP-PRD ( DT the ) ( JJ major ) ( NN obstacle ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( QP ( RB approximately ) ( CD 30,000 ) ) ( NN organ ) ( NNS transplants ) ) ( VP ( VBN performed ) ( ADVP-LOC ( RB world-wide ) ) ( NP-TMP ( DT each ) ( NN year ) ) ) ) ) ) ) )

Rejection has been the major obstacle in the approximately 30,000 organ transplants performed world-wide each year


( S ( NP-SBJ-2 ( NNS Researchers ) ) ( VP ( VBD began ) ( S ( VP ( VBG using ) ( NP ( DT the ) ( NN drug ) ) ) ) ( PP-TMP ( IN in ) ( NP ( NNP February ) ) ) ( PP-CLR-3 ( IN on ) ( NP ( NP ( NNS patients ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBD had ) ( VP ( VBN received ) ( NP ( NN kidney ) ( NN liver ) ( NN heart ) ( CC and ) ( NN pancreas ) ( NNS transplants ) ) ) ) ) ) ) ) ) )

Researchers began using the drug in February on patients who had received kidney liver heart and pancreas transplants


( S ( NP-SBJ-1 ( QP ( RB Only ) ( CD two ) ( IN of ) ( CD 111 ) ) ( NNS transplants ) ) ( VP ( VBP have ) ( VP ( VBN been ) ( VP ( VBN rejected ) ) ) ) )

Only two of 111 transplants have been rejected


( S ( NP-SBJ-1 ( NP ( DT The ) ( NN drug ) ) ( VP ( VBN discovered ) ( PP-TMP ( IN in ) ( NP ( CD 1984 ) ) ) ) ) ( VP ( VBZ is ) ( VP ( VBN metabolized ) ( PP-CLR ( IN from ) ( NP ( NP ( NN soil ) ( NN fungus ) ) ( VP ( VBN found ) ( PP-TMP ( IN in ) ( NP ( NNP Japan ) ) ) ) ) ) ) ) )

The drug discovered in 1984 is metabolized from soil fungus found in Japan


( S ( NP-SBJ ( DT The ) ( NNP Pittsburgh ) ( NNS patients ) ) ( VP ( VBP are ) ( NP-PRD ( NP ( DT the ) ( JJ first ) ( NNS humans ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB be ) ( VP ( VBN given ) ( NP ( NP ( DT the ) ( NN drug ) ) ( SBAR ( WHNP-3 ( WDT which ) ) ( S ( VP ( VBZ is ) ( VP ( VBN made ) ( PP ( IN by ) ( NP-LGS ( NNP Fujisawa ) ( NNP Pharmaceutical ) ( NNP Co ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

The Pittsburgh patients are the first humans to be given the drug which is made by Fujisawa Pharmaceutical Co


( SINV ( S-TPC-1 ( NP-SBJ ( PRP We ) ) ( VP ( VBP 're ) ( VP ( JJ shocked ) ( PP ( IN by ) ( NP ( PRP it ) ) ) ) ) ( SBAR ( IN because ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ 's ) ( VP ( VBN worked ) ( ADVP ( RB so ) ( RB fast ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Dr. ) ( NNP Thomas ) ( NNP E. ) ( NNP Starzl ) ) ( NP ( NP ( NN director ) ) ( PP ( IN of ) ( NP ( DT the ) ( NAC ( NNP University ) ( PP ( IN of ) ( NP ( NNP Pittsburgh ) ) ) ) ( NNP Transplantation ) ( NNP Program ) ) ) ) ) ( PP-LOC ( IN at ) ( NP ( DT a ) ( NN news ) ( NN conference ) ) ) ( ADVP-LOC ( RB here ) ) ( NP-TMP ( NN yesterday ) ) )

We 're shocked by it because it 's worked so fast said Dr. Thomas E. Starzl director of the University of Pittsburgh Transplantation Program at a news conference here yesterday


( SINV ( S-TPC-1 ( NP-SBJ ( PRP We ) ) ( VP ( VBP consider ) ( S ( NP-SBJ ( PRP it ) ) ( NP-PRD ( NP ( DT a ) ( JJ life-saving ) ( NN drug ) ) ( PP ( IN like ) ( NP ( NP ( CD one ) ) ( PP ( IN for ) ( NP ( NNP AIDS ) ) ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Dr. ) ( NNP John ) ( NNP Fung ) ) ( NP ( NP ( DT an ) ( NN immunologist ) ) ( PP-LOC ( IN at ) ( NP ( NP ( DT the ) ( NNP University ) ) ( PP ( IN of ) ( NP ( NNP Pittsburgh ) ) ) ) ) ) ) )

We consider it a life-saving drug like one for AIDS said Dr. John Fung an immunologist at the University of Pittsburgh


( S ( NP-SBJ ( NNS Researchers ) ) ( VP ( VBP say ) ( SBAR ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP believe ) ( SBAR ( S ( NP-SBJ ( NNP FK-506 ) ) ( VP ( VBZ is ) ( ADJP-PRD ( ADJP ( QP ( CD 100 ) ( NNS times ) ) ( RBR more ) ( JJ effective ) ) ( PP ( IN than ) ( NP ( NP ( DT the ) ( JJ traditional ) ( JJ anti-rejection ) ( NN drug ) ) ( NP ( NN cyclosporine ) ) ( VP ( VBN made ) ( PP ( IN by ) ( NP-LGS ( JJ Swiss ) ( JJ pharmaceutical ) ( NN giant ) ( NNP Sandoz ) ( NNP Ltd ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Researchers say they believe FK-506 is 100 times more effective than the traditional anti-rejection drug cyclosporine made by Swiss pharmaceutical giant Sandoz Ltd


( S ( NP-SBJ-1 ( PRP They ) ) ( VP ( VBP are ) ( ADVP ( RB also ) ) ( VP ( VBN encouraged ) ( PP ( IN by ) ( NP-LGS ( NP ( DT the ) ( ADJP ( RB relatively ) ( JJ mild ) ) ( JJ side ) ( NNS effects ) ) ( PP ( IN of ) ( NP ( NNP FK-506 ) ) ) ( PP ( VBN compared ) ( PP ( IN with ) ( NP ( NP ( NN cyclosporine ) ) ( SBAR ( WHNP-507 ( WDT which ) ) ( S ( VP ( MD can ) ( VP ( VB cause ) ( NP ( NP ( JJ renal ) ( NN failure ) ) ( NP ( NN morbidity ) ) ( NP ( NN nausea ) ) ( CC and ) ( NP ( JJ other ) ( NNS problems ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

They are also encouraged by the relatively mild side effects of FK-506 compared with cyclosporine which can cause renal failure morbidity nausea and other problems


( S ( S-1 ( NP-SBJ ( NP ( DT The ) ( JJ side ) ( NNS effects ) ) ( PRN ( PP ( IN of ) ( NP ( NN cyclosporine ) ) ) ) ) ( VP ( VBP have ) ( VP ( VBN made ) ( S ( NP-SBJ ( NP ( DT the ) ( NN penalty ) ) ( PP ( IN for ) ( NP ( PRP$ its ) ( NN success ) ) ) ) ( ADJP-PRD ( RB rather ) ( JJ high ) ) ) ) ) ) ( NP-SBJ ( NNP Dr. ) ( NNP Starzl ) ) ( VP ( VBD said ) ) )

The side effects of cyclosporine have made the penalty for its success rather high Dr. Starzl said


( S ( NP-SBJ ( NNP Dr. ) ( NNP Fung ) ) ( VP ( VBD said ) ( SBAR ( SBAR ( IN that ) ( S ( NP-SBJ ( NNP FK-506 ) ) ( VP ( MD would ) ( RB not ) ( VP ( VB be ) ( ADJP-PRD ( JJ available ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN market ) ) ) ( PP-TMP ( IN for ) ( NP ( QP ( IN at ) ( JJS least ) ( DT a ) ) ( NN year ) ) ) ) ) ) ) ( CC and ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( NNP FDA ) ( NN approval ) ( NN process ) ) ( ADVP-TMP ( RB usually ) ) ( VP ( VBZ takes ) ( NP ( NP ( CD three ) ( NNS years ) ) ( TO to ) ( NP ( CD five ) ( NNS years ) ) ) ) ) ) ) ) )

Dr. Fung said that FK-506 would not be available in the market for at least a year and that the FDA approval process usually takes three years to five years


( S ( NP-SBJ ( EX There ) ) ( VP ( VBP are ) ( NP-PRD ( DT no ) ( JJ firm ) ( NNS plans ) ( S ( VP ( TO to ) ( VP ( VB expand ) ( NP ( DT the ) ( JJ experimental ) ( NN program ) ) ( PP-DIR-CLR ( IN beyond ) ( NP ( NP ( NP ( DT the ) ( NNP University ) ) ( PP ( IN of ) ( NP ( NNP Pittsburgh ) ) ) ) ( SBAR ( WHNP-1 ( WP$ whose ) ( NN hospital ) ) ( S ( VP ( VBZ performs ) ( NP ( NP ( DT the ) ( JJS most ) ( NNS transplants ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN world ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

There are no firm plans to expand the experimental program beyond the University of Pittsburgh whose hospital performs the most transplants in the world


( S ( S ( NP-SBJ ( NNS Researchers ) ) ( VP ( MD could ) ( RB n't ) ( VP ( VB estimate ) ( NP ( NP ( DT the ) ( NN cost ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN drug ) ) ) ( SBAR ( WHADVP-1 ( WRB when ) ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ reaches ) ( NP ( DT the ) ( NN market ) ) ) ) ) ) ) ) ) ( CC but ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NNP FK-506 ) ) ( VP ( MD will ) ( VP ( VP ( VB enable ) ( S ( NP-SBJ ( NNS patients ) ) ( VP ( TO to ) ( VP ( VB cut ) ( NP ( NN hospital ) ( NNS stays ) ) ( PP-EXT ( IN by ) ( NP ( CD 50 ) ( NN % ) ) ) ) ) ) ) ( CC and ) ( VP ( VB reduce ) ( NP ( NP ( DT the ) ( NN number ) ) ( PP ( IN of ) ( NP ( NP ( NN blood ) ( NNS tests ) ) ( VP ( VBN used ) ( S-CLR ( VP ( TO to ) ( VP ( VB monitor ) ( NP ( NP ( DT the ) ( NN dosage ) ) ( PP ( IN of ) ( NP ( NP ( JJ cyclosporine ) ) ( CC and ) ( NP ( JJ other ) ( NNS drugs ) ) ) ) ) ) ) ) ( PP-LOC ( IN among ) ( NP ( NN transplant ) ( NNS recipients ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Researchers could n't estimate the cost of the drug when it reaches the market but they said FK-506 will enable patients to cut hospital stays by 50 % and reduce the number of blood tests used to monitor the dosage of cyclosporine and other drugs among transplant recipients


( S ( NP-SBJ ( NNP Dr. ) ( NNP Starzl ) ) ( VP ( VBD said ) ( SBAR ( SBAR ( S ( NP-SBJ-1 ( DT the ) ( NN research ) ) ( VP ( VBZ has ) ( VP ( VBN been ) ( ADVP ( RB largely ) ) ( VP ( VBN financed ) ( PP ( PP ( IN by ) ( NP-LGS ( NP ( DT the ) ( NNP National ) ( NNP Institute ) ) ( PP ( IN of ) ( NP ( NNP Health ) ) ) ) ) ( CC and ) ( PP ( IN by ) ( NP-LGS ( NN university ) ( NNS funds ) ) ) ) ) ) ) ) ) ( CC and ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NNP Fujisawa ) ) ( VP ( VBD did ) ( RB n't ) ( VP ( VB give ) ( NP ( DT the ) ( NN hospital ) ) ( NP ( DT any ) ( NNS grants ) ) ) ) ) ) ) ) )

Dr. Starzl said the research has been largely financed by the National Institute of Health and by university funds and that Fujisawa did n't give the hospital any grants


( S ( NP-SBJ ( PRP He ) ) ( VP ( VBD said ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( NN research ) ( NN team ) ) ( VP ( VBD had ) ( NP ( NP ( DT no ) ( JJ financial ) ( NN stake ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN drug ) ) ) ) ) ) ) ) )

He said that the research team had no financial stake in the drug


( S ( S-TPC-2 ( S ( NP-SBJ ( PRP We ) ) ( VP ( VBP 've ) ( VP ( VBN known ) ( PP-TMP ( IN for ) ( NP ( CD six ) ( NNS months ) ) ) ( NP ( NP ( DT the ) ( NN effect ) ) ( PP ( IN of ) ( NP ( DT this ) ( NN drug ) ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NP ( PRP$ our ) ( NN advice ) ) ( PP ( TO to ) ( NP ( PRP$ our ) ( NNS people ) ) ) ) ( VP ( VBZ has ) ( VP ( VBN been ) ( S-PRD ( RB not ) ( VP ( TO to ) ( VP ( VB buy ) ( NP ( NP ( DT the ) ( NN company ) ( POS 's ) ) ( NN stock ) ) ) ) ) ) ) ) ) ( NP-SBJ-1 ( NNP Dr. ) ( NNP Starzl ) ) ( VP ( VBD said ) ( S-ADV ( VP ( VBG adding ) ( SBAR ( IN that ) ( S ( S-NOM-SBJ ( VP ( VBG profiting ) ( PP-CLR ( IN from ) ( NP ( NNP FK-506 ) ) ) ) ) ( VP ( MD would ) ( RB n't ) ( VP ( VB be ) ( ADJP-PRD ( JJ ethical ) ) ) ) ) ) ) ) ) )

We 've known for six months the effect of this drug and our advice to our people has been not to buy the company 's stock Dr. Starzl said adding that profiting from FK-506 would n't be ethical


( S ( NP-SBJ ( DT The ) ( NNP Tennessee ) ( NNP Valley ) ( NNP Authority ) ) ( VP ( VBD issued ) ( NP ( NP ( QP ( CD 4 ) ( CD billion ) ) ) ( PP ( IN in ) ( NP ( NNS bonds ) ) ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NP ( DT the ) ( JJ federal ) ( NN utility ) ( POS 's ) ) ( JJ first ) ( JJ public ) ( NN debt ) ( NN offering ) ) ( PP-TMP ( IN in ) ( NP ( CD 15 ) ( NNS years ) ) ) ) ) ) )

The Tennessee Valley Authority issued 4 billion in bonds in the federal utility 's first public debt offering in 15 years


( S ( NP-SBJ-1 ( NP ( NNS Proceeds ) ) ( PP ( IN from ) ( NP ( NP ( DT the ) ( NNS bonds ) ) ( PP ( IN with ) ( NP ( NP ( NN coupon ) ( NNS rates ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( ADJP ( CD 8 ) ( NN % ) ) ( NN range ) ) ) ) ) ) ) ) ( VP ( MD will ) ( VP ( VB be ) ( VP ( VBN used ) ( S-CLR ( VP ( TO to ) ( VP ( VB replace ) ( NP ( NNS bonds ) ) ( PP-CLR ( IN with ) ( NP ( NP ( DT an ) ( JJ average ) ( NN interest ) ( NN rate ) ) ( PP ( IN of ) ( NP ( CD 13.1 ) ( NN % ) ) ) ) ) ) ) ) ) ) ) )

Proceeds from the bonds with coupon rates in the 8 % range will be used to replace bonds with an average interest rate of 13.1 %


( S ( NP-SBJ ( DT The ) ( NNP TVA ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( DT the ) ( VBG refinancing ) ) ( VP ( MD should ) ( VP ( VB save ) ( NP ( NP ( QP ( CD 75 ) ( CD million ) ) ) ( NP-ADV ( DT a ) ( NN year ) ) ( PP ( IN in ) ( NP ( NN interest ) ( NNS payments ) ) ) ) ) ) ) ) ) )

The TVA said the refinancing should save 75 million a year in interest payments


( S ( NP-SBJ ( DT The ) ( NN refinancing ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( NN part ) ) ( PP ( IN of ) ( NP ( NP ( NP ( DT the ) ( NNP TVA ) ( POS 's ) ) ( NN strategy ) ) ( PP ( IN of ) ( S-NOM ( VP ( VBG dealing ) ( PP-CLR ( IN with ) ( NP ( SBAR-NOM ( WHNP-2 ( WP what ) ) ( S ( VP ( VBZ has ) ( VP ( VBN been ) ( NP-PRD ( DT an ) ( JJ intractable ) ( NN problem ) ) ) ) ) ) ( NP ( NP ( PRP$ its ) ( JJ staggering ) ( ADJP ( QP ( CD 18.5 ) ( CD billion ) ) ) ( NN debt ) ) ( SBAR ( WHNP-3 ( WHNP ( JJS most ) ) ( WHPP ( IN of ) ( WHNP ( WDT which ) ) ) ) ( S ( VP ( VBZ is ) ( VP ( VBN owed ) ( PP-DTV ( TO to ) ( NP ( NP ( DT the ) ( NNP Treasury ) ( NNP Department ) ( POS 's ) ) ( NNP Federal ) ( NNP Financing ) ( NNP Bank ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

The refinancing is part of the TVA 's strategy of dealing with what has been an intractable problem its staggering 18.5 billion debt most of which is owed to the Treasury Department 's Federal Financing Bank


( S ( NP-SBJ-1 ( DT The ) ( NNP TVA ) ) ( ADVP-TMP ( RB currently ) ) ( VP ( VBZ plans ) ( S ( VP ( TO to ) ( VP ( VB issue ) ( NP ( NP ( DT a ) ( NN total ) ) ( PP ( IN of ) ( NP ( QP ( CD 6.7 ) ( CD billion ) ) ) ) ( PP ( IN in ) ( NP ( NNS bonds ) ) ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB refinance ) ( NP ( PRP$ its ) ( JJ high-interest ) ( NN debt ) ) ) ) ) ) ) ) ) )

The TVA currently plans to issue a total of 6.7 billion in bonds to refinance its high-interest debt


( SINV ( S-TPC-2 ( NP-SBJ ( DT The ) ( ADJP ( QP ( CD 4 ) ( CD billion ) ) ) ( NN bond ) ( NN issue ) ) ( ADVP ( RB also ) ) ( VP ( MD will ) ( VP ( VB help ) ( S ( NP-SBJ-1 ( DT the ) ( NNP TVA ) ) ( VP ( VB meet ) ( NP ( NP ( PRP$ its ) ( NN goal ) ) ( PP ( IN of ) ( S-NOM ( VP ( RB not ) ( VBG raising ) ( NP ( NNS rates ) ) ( PP-TMP ( IN for ) ( NP ( DT another ) ( NN year ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP William ) ( NNP F. ) ( NNP Malec ) ) ( NP ( NP ( DT the ) ( NN agency ) ( POS 's ) ) ( JJ chief ) ( JJ financial ) ( NN officer ) ) ) )

The 4 billion bond issue also will help the TVA meet its goal of not raising rates for another year said William F. Malec the agency 's chief financial officer


( S ( NP-SBJ ( DT The ) ( NN bond ) ( NN issue ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( NP ( NNP TVA ) ( POS 's ) ) ( JJ first ) ( JJ public ) ( NN offering ) ) ( SBAR-TMP ( IN since ) ( S ( NP-SBJ-1 ( DT the ) ( NNP Financing ) ( NNP Bank ) ) ( VP ( VBD was ) ( VP ( VBN created ) ( PP-TMP ( IN in ) ( NP ( CD 1974 ) ) ) ( S-PRP ( ADVP ( RB primarily ) ) ( VP ( TO to ) ( VP ( VB finance ) ( NP ( DT the ) ( NNP TVA ) ) ) ) ) ) ) ) ) ) ) )

The bond issue is TVA 's first public offering since the Financing Bank was created in 1974 primarily to finance the TVA


( S ( CC But ) ( NP-SBJ ( DT the ) ( NN offering ) ) ( ADVP ( RB almost ) ) ( VP ( VBD did ) ( RB n't ) ( VP ( VB happen ) ) ) )

But the offering almost did n't happen


( S ( NP-SBJ-2 ( DT The ) ( NNP TVA ) ) ( PP ( IN in ) ( NP ( NN fact ) ) ) ( VP ( VBD decided ) ( S ( VP ( TO to ) ( VP ( VB proceed ) ( PP-CLR ( IN with ) ( NP ( DT the ) ( NN bond ) ( NN offering ) ) ) ) ) ) ( PP-TMP ( VBG following ) ( NP ( NP ( DT an ) ( NN agreement ) ) ( NP-TMP ( JJ last ) ( NN week ) ) ( PP ( IN with ) ( NP ( NP ( DT the ) ( NNP Financing ) ( NNP Bank ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ allows ) ( S ( NP-SBJ ( NNP TVA ) ) ( VP ( TO to ) ( VP ( VB keep ) ( VP ( VBG borrowing ) ( NP-MNR ( JJ short ) ( NN term ) ) ( PP-CLR ( IN from ) ( NP ( DT the ) ( NN bank ) ) ) ( PP-TMP ( IN for ) ( NP ( CD two ) ( NNS years ) ) ) ( SBAR-TMP ( IN after ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ goes ) ( PP-DIR ( TO to ) ( NP ( DT the ) ( JJ public ) ( NN market ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

The TVA in fact decided to proceed with the bond offering following an agreement last week with the Financing Bank which allows TVA to keep borrowing short term from the bank for two years after it goes to the public market


( S ( NP-SBJ ( DT The ) ( NNP Treasury ) ) ( VP ( VBD contended ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NNP TVA ) ) ( VP ( MD could ) ( RB n't ) ( VP ( VB borrow ) ( PP-CLR ( IN from ) ( NP ( DT both ) ( NP ( PRP it ) ) ( CC and ) ( NP ( DT the ) ( JJ public ) ( NN debt ) ( NN market ) ) ) ) ) ) ) ) ) )

The Treasury contended that TVA could n't borrow from both it and the public debt market


( S ( NP-SBJ ( NP ( DT The ) ( QP ( CD 4 ) ( CD billion ) ) ) ( PP ( IN in ) ( NP ( NNS bonds ) ) ) ) ( VP ( VBP break ) ( PRT ( RP down ) ) ( UCP ( SBAR-MNR ( IN as ) ( S ( VP ( VBZ follows ) ) ) ) ( NP-ADV ( NP ( NP ( QP ( CD 1 ) ( CD billion ) ) ) ( PP ( IN in ) ( NP ( JJ five-year ) ( NNS bonds ) ) ) ( PP ( IN with ) ( NP ( NP ( NP ( DT a ) ( NN coupon ) ( NN rate ) ) ( PP ( IN of ) ( NP ( CD 8.25 ) ( NN % ) ) ) ) ( CC and ) ( NP ( NP ( DT a ) ( NN yield ) ) ( PP ( TO to ) ( NP ( NN maturity ) ) ) ( PP ( IN of ) ( NP ( CD 8.33 ) ( NN % ) ) ) ) ) ) ) ( NP ( NP ( QP ( CD 1 ) ( CD billion ) ) ) ( PP ( IN in ) ( NP ( JJ 10-year ) ( NNS bonds ) ) ) ( PP ( IN with ) ( NP ( NP ( NP ( DT a ) ( NN coupon ) ( NN rate ) ) ( PP ( IN of ) ( NP ( CD 8.375 ) ( NN % ) ) ) ) ( CC and ) ( NP ( NP ( DT a ) ( NN yield ) ) ( PP ( TO to ) ( NP ( NN maturity ) ) ) ( PP ( IN of ) ( NP ( CD 8.42 ) ( NN % ) ) ) ) ) ) ) ( NP ( NP ( QP ( CD 2 ) ( CD billion ) ) ) ( PP ( IN in ) ( NP ( JJ 30-year ) ( NNS bonds ) ) ) ( PP ( IN with ) ( NP ( NP ( JJ five-year ) ( NN call ) ( NN protection ) ) ( NP ( NP ( DT a ) ( NN coupon ) ( NN rate ) ) ( PP ( IN of ) ( NP ( CD 8.75 ) ( NN % ) ) ) ) ( CC and ) ( NP ( NP ( DT a ) ( NN yield ) ) ( PP ( TO to ) ( NP ( NN maturity ) ) ) ( PP ( IN of ) ( NP ( CD 9.06 ) ( NN % ) ) ) ) ) ) ) ) ) ) )

The 4 billion in bonds break down as follows 1 billion in five-year bonds with a coupon rate of 8.25 % and a yield to maturity of 8.33 % 1 billion in 10-year bonds with a coupon rate of 8.375 % and a yield to maturity of 8.42 % 2 billion in 30-year bonds with five-year call protection a coupon rate of 8.75 % and a yield to maturity of 9.06 %


( SINV ( VP-TPC-1 ( VBG Managing ) ( NP ( DT the ) ( NN bond ) ( NN issue ) ) ) ( VP ( VBZ is ) ) ( NP-SBJ ( NP ( DT a ) ( NN group ) ) ( PP ( IN of ) ( NP ( NN investment ) ( NNS banks ) ) ) ( VP ( VP ( VBN headed ) ( PP ( IN by ) ( NP-LGS ( NNP First ) ( NNP Boston ) ( NNP Corp. ) ) ) ) ( CC and ) ( VP ( VBN co-managed ) ( PP ( IN by ) ( NP-LGS ( NP ( NNP Goldman ) ( NNP Sachs ) ( CC & ) ( NNP Co. ) ) ( NP ( NNP Merrill ) ( NNP Lynch ) ( NNP Capital ) ( NNP Markets ) ) ( NP ( NNP Morgan ) ( NNP Stanley ) ( CC & ) ( NNP Co. ) ) ( CC and ) ( NP ( NNP Salomon ) ( NNP Brothers ) ( NNP Inc ) ) ) ) ) ) ) )

Managing the bond issue is a group of investment banks headed by First Boston Corp. and co-managed by Goldman Sachs & Co. Merrill Lynch Capital Markets Morgan Stanley & Co. and Salomon Brothers Inc


( S ( S ( NP-SBJ ( NNP Times ) ) ( VP ( MD may ) ( VP ( VB be ) ( ADJP-PRD ( JJ tough ) ) ( PP-LOC ( IN on ) ( NP ( NNP Wall ) ( NNP Street ) ) ) ( PP ( IN for ) ( NP ( DT some ) ) ) ) ) ) ( CC but ) ( S ( NP-SBJ ( DT a ) ( JJ few ) ( NNS bosses ) ) ( VP ( VBP are ) ( VP ( VBG making ) ( NP ( NP ( NP ( RB as ) ( JJ much ) ) ( PP ( IN as ) ( ADVP ( RB ever ) ) ) ) ( CC or ) ( NP ( JJR more ) ) ) ) ) ) )

Times may be tough on Wall Street for some but a few bosses are making as much as ever or more


( S ( PP-LOC ( IN At ) ( NP ( NNP Bear ) ( NNP Stearns ) ( NNP Cos. ) ) ) ( PP ( IN for ) ( NP ( NN example ) ) ) ( NP-SBJ ( NP ( DT the ) ( CD 15 ) ( JJ executive ) ( NNS officers ) ) ( VP ( VBN led ) ( PP ( IN by ) ( NP-LGS ( NNP Chairman ) ( NNP Alan ) ( NNP Ace ) ( NNP Greenberg ) ) ) ) ) ( VP ( VBD got ) ( NP ( NP ( DT a ) ( NN pay ) ( NN increase ) ) ( PP ( TO to ) ( NP ( NP ( QP ( CD 35.9 ) ( CD million ) ) ) ( PP ( IN for ) ( NP ( NP ( DT the ) ( JJ 14-month ) ( NN period ) ) ( VP ( VBN ended ) ( NP-TMP ( NNP June ) ( CD 30 ) ) ) ) ) ) ) ( PP ( IN from ) ( NP ( NP ( QP ( CD 22.9 ) ( CD million ) ) ) ( PP ( IN for ) ( NP ( NP ( DT the ) ( CD 12 ) ( NNS months ) ) ( VP ( VBN ended ) ( NP-TMP ( NNP April ) ( CD 30 ) ( CD 1988 ) ) ) ) ) ) ) ) ) )

At Bear Stearns Cos. for example the 15 executive officers led by Chairman Alan Ace Greenberg got a pay increase to 35.9 million for the 14-month period ended June 30 from 22.9 million for the 12 months ended April 30 1988


( S ( NP-SBJ ( DT The ) ( NNS figures ) ) ( VP ( VBP do ) ( RB n't ) ( VP ( VB include ) ( NP ( NP ( JJ substantial ) ( NNS dividends ) ) ( PP ( IN on ) ( NP ( NP ( NNS holdings ) ) ( PP ( IN of ) ( NP ( NNP Bear ) ( NNP Stearns ) ( NN stock ) ) ) ) ) ) ) ) )

The figures do n't include substantial dividends on holdings of Bear Stearns stock


( S ( NP-SBJ-1 ( NP ( NNP Mr. ) ( NNP Greenberg ) ) ( NP ( PRP himself ) ) ) ( VP ( VBD was ) ( VP ( VBN paid ) ( NP ( NP ( QP ( CD 4.5 ) ( CD million ) ) ) ) ( PP-TMP ( IN before ) ( NP ( NP ( DT an ) ( JJ estimated ) ( QP ( CD 1.5 ) ( CD million ) ) ) ( PP-LOC ( IN in ) ( NP ( NNS dividends ) ) ) ) ) ( ADVP-2 ( RB up ) ( PP ( IN from ) ( NP ( QP ( CD 2.4 ) ( CD million ) ) ) ( NP-TMP ( NP ( DT the ) ( NN year ) ) ( ADVP-TMP ( RB before ) ) ) ) ) ) ) )

Mr. Greenberg himself was paid 4.5 million before an estimated 1.5 million in dividends up from 2.4 million the year before


( S ( NP-SBJ-1 ( DT The ) ( NN increase ) ) ( VP ( VBZ is ) ( VP ( VBN noted ) ( PP-LOC ( IN in ) ( NP ( NP ( NP ( DT the ) ( NN brokerage ) ( NN firm ) ( POS 's ) ) ( JJS latest ) ( JJ proxy ) ( NN statement ) ) ( VP ( VBN filed ) ( PP-CLR ( IN with ) ( NP ( DT the ) ( NNP Securities ) ( CC and ) ( NNP Exchange ) ( NNP Commission ) ) ) ) ) ) ) ) )

The increase is noted in the brokerage firm 's latest proxy statement filed with the Securities and Exchange Commission


( S ( SBAR-PRP ( IN Because ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ operates ) ( PP-CLR ( IN on ) ( NP ( DT a ) ( JJ fiscal ) ( NN year ) ) ) ) ) ) ( NP-SBJ ( NP ( NNP Bear ) ( NNP Stearns ) ( POS 's ) ) ( JJ yearly ) ( NNS filings ) ) ( VP ( VBP are ) ( ADJP-PRD ( JJ available ) ) ( ADVP-TMP ( ADVP ( RB much ) ( RBR earlier ) ) ( PP ( IN than ) ( NP ( NP ( DT those ) ) ( PP ( IN of ) ( NP ( JJ other ) ( NNS firms ) ) ) ) ) ) ) )

Because it operates on a fiscal year Bear Stearns 's yearly filings are available much earlier than those of other firms


( S ( NP-SBJ ( DT The ) ( JJS latest ) ( NN period ) ) ( VP ( VBZ includes ) ( NP ( NP ( CD 14 ) ( NNS months ) ) ( CONJP ( RB instead ) ( IN of ) ) ( NP ( CD 12 ) ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ ( NNP Bear ) ( NNP Stearns ) ) ( VP ( VBD changed ) ( PP-CLR ( TO to ) ( NP ( NP ( DT a ) ( JJ fiscal ) ( NN year ) ) ( VP ( VBG ending ) ( PP-TMP ( IN in ) ( NP ( NNP June ) ( CONJP ( RB instead ) ( IN of ) ) ( NNP April ) ) ) ) ) ) ) ) ) ) )

The latest period includes 14 months instead of 12 because Bear Stearns changed to a fiscal year ending in June instead of April


( S ( ADVP-TMP ( RB Meanwhile ) ) ( NP-SBJ ( NP ( NNP Bear ) ( NNP Stearns ) ( POS 's ) ) ( CD 650 ) ( NN stock ) ( CC and ) ( NN bond ) ( NNS salesmen ) ) ( VP ( VBD saw ) ( NP ( JJR thinner ) ( NNS paychecks ) ) ( PP-TMP ( IN over ) ( NP ( DT the ) ( NN past ) ( NN year ) ) ) ( SBAR-ADV ( WHNP-1 ( WDT which ) ) ( S ( NP-SBJ ( DT the ) ( NN company ) ) ( VP ( VBZ says ) ( SBAR ( S ( VP ( VBD reflected ) ( NP ( NP ( JJR lower ) ( NN commission ) ( NN revenue ) ) ( VP ( VBN caused ) ( PP ( IN by ) ( NP-LGS ( NP ( DT a ) ( NN decline ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NN investor ) ( NN activity ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NNS markets ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Meanwhile Bear Stearns 's 650 stock and bond salesmen saw thinner paychecks over the past year which the company says reflected lower commission revenue caused by a decline in investor activity in the markets


( S ( ADVP ( RB However ) ) ( NP-SBJ ( NNP Bear ) ( NNP Stearns ) ) ( PP-TMP ( IN on ) ( NP ( NNP Monday ) ) ) ( VP ( VBD reported ) ( NP ( NP ( JJ improved ) ( NNS earnings ) ) ( PP ( IN for ) ( NP ( NP ( PRP$ its ) ( JJ first ) ( NN quarter ) ) ( VP ( VBN ended ) ( NP-TMP ( NNP Sept. ) ( CD 29 ) ) ) ) ) ) ( PP-PRP ( ADVP ( RB partly ) ) ( IN because ) ( IN of ) ( NP ( NP ( DT a ) ( ADVP ( CD 31 ) ( NN % ) ) ( NN increase ) ) ( PP-LOC ( IN in ) ( NP ( NNS commissions ) ) ) ( PP-TMP ( IN during ) ( NP ( DT the ) ( NN quarter ) ) ) ) ) ) )

However Bear Stearns on Monday reported improved earnings for its first quarter ended Sept. 29 partly because of a 31 % increase in commissions during the quarter


( S ( NP-SBJ ( NP ( NNP William ) ( NNP J. ) ( NNP Montgoris ) ) ( NP ( JJ chief ) ( JJ financial ) ( NN officer ) ) ) ( VP ( VBD defended ) ( NP ( NP ( DT the ) ( JJ lofty ) ( NNS salaries ) ) ( PP-LOC ( IN at ) ( NP ( NNP Bear ) ( NNP Stearns ) ) ) ) ) )

William J. Montgoris chief financial officer defended the lofty salaries at Bear Stearns


( S ( S-TPC-1 ( S ( NP-SBJ ( NP ( DT All ) ) ( PP ( IN of ) ( NP ( PRP us ) ) ) ) ( VP ( VBP are ) ( PP-PRD ( IN on ) ( NP ( NP ( DT a ) ( JJ base ) ( NN salary ) ) ( PP ( IN of ) ( NP ( CD 200,000 ) ) ) ) ) ( SBAR-ADV ( IN if ) ( S ( NP-SBJ ( DT the ) ( NN firm ) ) ( VP ( VBZ makes ) ( NP ( NN nothing ) ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( DT that ) ) ( VP ( VBZ 's ) ( ADJP-PRD ( RB pretty ) ( JJ low ) ) ( ADVP ( ADVP ( RB as ) ( RB far ) ) ( SBAR ( IN as ) ( S ( NP-SBJ ( NNP Wall ) ( NNP Street ) ) ( VP ( VBZ goes ) ) ) ) ) ) ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Montgoris ) ) ( VP ( VBD said ) ) )

All of us are on a base salary of 200,000 if the firm makes nothing and that 's pretty low as far as Wall Street goes Mr. Montgoris said


( S ( ADVP ( RB However ) ) ( NP-SBJ ( NNP Bear ) ( NNP Stearns ) ) ( VP ( VBZ has ) ( ADVP-TMP ( RB never ) ) ( VP ( VBD had ) ( NP ( DT an ) ( JJ unprofitable ) ( NN year ) ) ( PP-TMP ( IN since ) ( NP ( NP ( PRP$ its ) ( NN founding ) ) ( ADVP-TMP ( NP ( CD 65 ) ( NNS years ) ) ( RB ago ) ) ) ) ) ) )

However Bear Stearns has never had an unprofitable year since its founding 65 years ago


( S ( NP-SBJ-1 ( NP ( CD Four ) ( NNP Bear ) ( NNP Stearns ) ( NNS executives ) ) ( PP ( IN besides ) ( NP ( DT the ) ( JJ 62-year-old ) ( NNP Mr. ) ( NNP Greenberg ) ) ) ) ( VP ( VBD were ) ( VP ( VBN paid ) ( NP ( NP ( QP ( CD 3 ) ( CD million ) ) ( QP ( CC or ) ( JJR more ) ) ) ( PP-TMP ( IN before ) ( NP ( NNS dividends ) ) ) ) ( PP ( IN for ) ( NP ( NP ( DT the ) ( CD 14 ) ( NNS months ) ) ( VP ( VBN ended ) ( PP-TMP ( IN in ) ( NP ( NNP June ) ) ) ) ) ) ) ) )

Four Bear Stearns executives besides the 62-year-old Mr. Greenberg were paid 3 million or more before dividends for the 14 months ended in June


( S ( PP ( VBG According ) ( PP ( TO to ) ( NP ( DT the ) ( JJ proxy ) ( NN statement ) ) ) ) ( S ( NP-SBJ ( NP ( NNP James ) ( NNP E. ) ( NNP Cayne ) ) ( NP ( CD 55 ) ) ( NP ( NP ( NNP Bear ) ( NNP Stearns ) ( POS 's ) ) ( NN president ) ) ) ( VP ( VBD made ) ( NP ( QP ( CD 3.9 ) ( CD million ) ) ) ) ) ( S ( NP-SBJ ( NP ( DT an ) ( JJ executive ) ( NN vice ) ( NN president ) ) ( NP ( NNP Michael ) ( NNP L. ) ( NNP Tarnopol ) ) ( NP ( CD 53 ) ) ) ( VP ( VBD made ) ( NP ( QP ( RB nearly ) ( CD 3.4 ) ( CD million ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NP ( CD two ) ( JJ executive ) ( NN vice ) ( NNS presidents ) ) ( NP ( NP ( NP ( NNP Vincent ) ( NNP J. ) ( NNP Mattone ) ) ( NP ( CD 44 ) ) ) ( CC and ) ( NP ( NP ( NNP William ) ( NNP J. ) ( NNP Michaelcheck ) ) ( NP ( CD 42 ) ) ) ) ) ( VP ( VBN made ) ( NP ( NP ( QP ( RB about ) ( CD 3.3 ) ( CD million ) ) ) ( NP ( DT each ) ) ) ) ) )

According to the proxy statement James E. Cayne 55 Bear Stearns 's president made 3.9 million an executive vice president Michael L. Tarnopol 53 made nearly 3.4 million and two executive vice presidents Vincent J. Mattone 44 and William J. Michaelcheck 42 made about 3.3 million each


( S ( NP-SBJ ( NNP Mr. ) ( NNP Montgoris ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NN firm ) ) ( VP ( VBZ has ) ( NP ( NP ( DT a ) ( JJ straight ) ( JJ mathematical ) ( NN formula ) ) ( PP ( IN for ) ( S-NOM ( VP ( VBG determining ) ( NP ( NN compensation ) ) ) ) ) ( PP ( VBN based ) ( PP ( IN on ) ( NP ( NP ( DT the ) ( NN firm ) ( POS 's ) ) ( NNS earnings ) ) ) ) ) ) ) ) ) )

Mr. Montgoris said the firm has a straight mathematical formula for determining compensation based on the firm 's earnings


( S ( S-TPC-2 ( SBAR-SBJ ( RB Just ) ( IN because ) ( S ( NP-SBJ ( NP ( DT a ) ( JJ particular ) ( NN element ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN firm ) ) ) ) ( VP ( VBZ is ) ( ADVP-PRD ( RB down ) ) ( PP-1 ( JJ such ) ( IN as ) ( NP ( NN stockbrokerage ) ) ) ) ) ) ( VP ( VBZ does ) ( RB n't ) ( VP ( VB mean ) ( SBAR ( S ( NP-SBJ-3 ( DT the ) ( JJ executive ) ( NN committee ) ) ( VP ( MD should ) ( VP ( VB be ) ( VP ( VBN paid ) ( NP ( JJR less ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBD said ) ) )

Just because a particular element of the firm is down such as stockbrokerage does n't mean the executive committee should be paid less he said


( S ( NP-SBJ-2 ( DT The ) ( JJ following ) ( NNS issues ) ) ( VP ( VBD were ) ( ADVP-TMP ( RB recently ) ) ( VP ( VBN filed ) ( PP-CLR ( IN with ) ( NP ( DT the ) ( NNP Securities ) ( CC and ) ( NNP Exchange ) ( NNP Commission ) ) ) ) ) )

The following issues were recently filed with the Securities and Exchange Commission


( NP ( NP ( NNP Health ) ( NNP Care ) ( NNP Property ) ( NNP Investors ) ( NNP Inc. ) ) ( NP ( NP ( VBG offering ) ) ( PP ( IN of ) ( NP ( NP ( CD 2,250,000 ) ( NNS shares ) ) ( PP ( IN of ) ( NP ( JJ common ) ( NN stock ) ) ) ) ) ( PP ( IN via ) ( NP ( NP ( NNP Merrill ) ( NNP Lynch ) ( NNP Capital ) ( NNP Markets ) ) ( NP ( NNP Alex ) ( NNP Brown ) ( CC & ) ( NNP Sons ) ( NNP Inc. ) ) ( CC and ) ( NP ( NNP Dean ) ( NNP Witter ) ( NNP Reynolds ) ( NNP Inc ) ) ) ) ) )

Health Care Property Investors Inc. offering of 2,250,000 shares of common stock via Merrill Lynch Capital Markets Alex Brown & Sons Inc. and Dean Witter Reynolds Inc


( NP ( NP ( NNP Union ) ( NNP Pacific ) ( NNP Corp. ) ) ( NP ( NP ( NN shelf ) ( NN offering ) ) ( PP ( IN of ) ( NP ( NP ( QP ( IN up ) ( TO to ) ( CD 500 ) ( CD million ) ) ) ( NP ( NP ( NN debt ) ( NNS securities ) ) ( CC and ) ( NP ( NNS warrants ) ) ) ) ) ) )

Union Pacific Corp. shelf offering of up to 500 million debt securities and warrants


( NP ( NP ( NNP United ) ( NNP Technologies ) ( NNP Corp. ) ) ( NP ( NP ( NN shelf ) ( NN offering ) ) ( PP ( IN of ) ( NP ( NP ( QP ( IN up ) ( TO to ) ( CD 500 ) ( CD million ) ) ) ( NP ( JJ unsubordinated ) ( JJ non-convertible ) ( JJ unsecured ) ( NN debt ) ( NNS securities ) ) ) ) ) )

United Technologies Corp. shelf offering of up to 500 million unsubordinated non-convertible unsecured debt securities


( S ( NP-SBJ ( NNP National ) ( NNP Patent ) ( NNP Development ) ( NNP Corp. ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-1 ( PRP it ) ) ( VP ( VBZ plans ) ( S ( VP ( TO to ) ( VP ( VB purchase ) ( NP ( NP ( QP ( RB as ) ( JJ many ) ( IN as ) ( CD 200,000 ) ) ( JJ common ) ( NNS shares ) ) ( PP ( IN of ) ( NP ( PRP$ its ) ( JJ 81%-controlled ) ( NNP Interferon ) ( NNP Sciences ) ( NNP Inc. ) ( NN unit ) ) ) ) ( PP-LOC ( IN in ) ( NP ( JJ periodic ) ( JJ open-market ) ( NNS purchases ) ) ) ) ) ) ) ) ) ) )

National Patent Development Corp. said it plans to purchase as many as 200,000 common shares of its 81%-controlled Interferon Sciences Inc. unit in periodic open-market purchases


( S ( NP-SBJ ( DT The ) ( CD 200,000 ) ( NNS shares ) ) ( VP ( VBP are ) ( NP-PRD ( NP ( QP ( RB about ) ( CD 23 ) ) ( NN % ) ) ( PP ( IN of ) ( NP ( NP ( NP ( NNP Interferon ) ( POS 's ) ) ( JJ common ) ( NNS shares ) ) ( ADJP ( JJ outstanding ) ) ) ) ) ( PP ( VBG excluding ) ( NP ( NP ( NNP National ) ( NNP Patent ) ( POS 's ) ) ( NN stake ) ) ) ) )

The 200,000 shares are about 23 % of Interferon 's common shares outstanding excluding National Patent 's stake


( S ( S-ADV ( VP ( VBG Noting ) ( NP ( NP ( DT the ) ( JJ recent ) ( NNP Food ) ( CC and ) ( NNP Drug ) ( NNP Administration ) ( NN approval ) ) ( PP ( IN of ) ( NP ( NP ( NNP Interferon ) ( POS 's ) ) ( JJ genital ) ( NNS warts ) ( NN treatment ) ) ) ) ) ) ( NP-SBJ-1 ( NNP National ) ( NNP Patent ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ believes ) ( SBAR ( S ( NP-SBJ ( NP ( NNP Interferon ) ( POS 's ) ) ( NN stock ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ undervalued ) ) ) ) ) ) ) ) ) )

Noting the recent Food and Drug Administration approval of Interferon 's genital warts treatment National Patent said it believes Interferon 's stock is undervalued


( S ( S-TPC-1 ( NP-SBJ ( NP ( NNP Italy ) ( POS 's ) ) ( JJ wholesale ) ( NN price ) ( NN index ) ) ( VP ( VP ( VBD rose ) ( NP-EXT ( CD 0.4 ) ( NN % ) ) ( PP-TMP ( IN in ) ( NP ( NNP August ) ) ) ( PP-DIR ( IN from ) ( NP-TMP ( NNP July ) ) ) ) ( CC and ) ( VP ( VBD was ) ( ADVP-PRD ( RB up ) ( NP ( CD 6.1 ) ( NN % ) ) ( PP ( IN from ) ( ADVP ( NP ( DT a ) ( NN year ) ) ( RBR earlier ) ) ) ) ) ) ) ( NP-SBJ ( DT the ) ( NN state ) ( JJ statistical ) ( NN institute ) ) ( VP ( VBD reported ) ) )

Italy 's wholesale price index rose 0.4 % in August from July and was up 6.1 % from a year earlier the state statistical institute reported


( S ( NP-SBJ ( DT The ) ( NN index ) ) ( VP ( VBD registered ) ( NP ( CD 196.1 ) ) ( PP-TMP ( IN in ) ( NP ( NNP August ) ) ) ( PP ( VBN compared ) ( PP ( PP ( IN with ) ( NP ( NP ( CD 195.4 ) ) ( PP-TMP ( IN in ) ( NP ( NNP July ) ) ) ) ) ( CC and ) ( PP ( IN with ) ( NP ( NP ( CD 184.9 ) ) ( PP-TMP ( IN in ) ( NP ( NNP August ) ( CD 1988 ) ) ) ) ) ) ) ) )

The index registered 196.1 in August compared with 195.4 in July and with 184.9 in August 1988


( S ( NP-SBJ ( NP ( DT The ) ( JJ year-on-year ) ( NN rise ) ) ( PP-TMP ( IN in ) ( NP ( NNP August ) ) ) ) ( VP ( VBD was ) ( ADVP-PRD ( RB slightly ) ( RB down ) ( PP ( IN from ) ( NP ( NP ( DT the ) ( ADJP ( CD 6.4 ) ( NN % ) ) ( NN rate ) ) ( PP-TMP ( IN in ) ( NP ( NNP July ) ) ) ) ) ) ) )

The year-on-year rise in August was slightly down from the 6.4 % rate in July


( S ( NP-SBJ-1 ( DT The ) ( NN index ) ) ( VP ( VP ( VBZ has ) ( NP ( NP ( DT a ) ( NN base ) ) ( PP ( IN of ) ( NP ( CD 100 ) ) ) ( VP ( NN set ) ( PP-TMP ( IN in ) ( NP ( CD 1980 ) ) ) ) ) ) ( CC and ) ( VP ( VBZ is ) ( RB n't ) ( VP ( ADVP-MNR ( RB seasonally ) ) ( VBN adjusted ) ) ) ) )

The index has a base of 100 set in 1980 and is n't seasonally adjusted


( S ( PP-TMP ( IN After ) ( S-NOM ( VP ( VBG enduring ) ( NP ( NP ( CD three ) ( NNS days ) ) ( PP ( IN of ) ( NP ( JJ heavy ) ( NN selling ) ) ) ) ) ) ) ( NP-SBJ-1 ( DT the ) ( JJ beleaguered ) ( NNP Nasdaq ) ( JJ over-the-counter ) ( NN market ) ) ( ADVP ( RB finally ) ) ( VP ( VBD rebounded ) ( S-ADV ( VP ( VBG rising ) ( ADVP-MNR ( RB sharply ) ) ( PP-LOC ( IN in ) ( NP ( JJ hearty ) ( NN trading ) ) ) ) ) ) )

After enduring three days of heavy selling the beleaguered Nasdaq over-the-counter market finally rebounded rising sharply in hearty trading


( S ( NP-SBJ ( DT The ) ( NNP Nasdaq ) ( NNP Composite ) ( NNP Index ) ) ( VP ( VBD jumped ) ( NP-EXT ( NP ( CD 0.7 ) ( NN % ) ) ( CC or ) ( NP ( CD 3.35 ) ) ) ( PP-DIR ( TO to ) ( NP ( CD 463.28 ) ) ) ) )

The Nasdaq Composite Index jumped 0.7 % or 3.35 to 463.28


( S ( NP-SBJ ( PRP It ) ) ( VP ( VBD rose ) ( NP-EXT ( NP ( RBR more ) ) ( PP ( IN than ) ( NP ( NP ( DT the ) ( NNP New ) ( NNP York ) ( NNP Stock ) ( NNP Exchange ) ( NNP Composite ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBD improved ) ( NP-EXT ( CD 0.2 ) ( NN % ) ) ) ) ) ) ) ) ) )

It rose more than the New York Stock Exchange Composite which improved 0.2 %


( S ( PP-LOC ( IN Among ) ( NP ( JJR bigger ) ( NNS stocks ) ) ) ( NP-SBJ ( DT the ) ( NNP Nasdaq ) ( CD 100 ) ( NNP Index ) ) ( VP ( VBD rose ) ( NP-EXT ( NP ( CD 1 ) ( NN % ) ) ( CC or ) ( NP ( CD 4.56 ) ) ) ( PP-DIR ( TO to ) ( NP ( CD 453.05 ) ) ) ( SBAR-ADV ( IN while ) ( S ( NP-SBJ ( DT the ) ( NNP Dow ) ( NNP Jones ) ( NNP Industrial ) ( NNP Average ) ) ( VP ( VBD was ) ( ADVP-PRD ( RB up ) ( NP ( CD 0.2 ) ( NN % ) ) ) ) ) ) ) )

Among bigger stocks the Nasdaq 100 Index rose 1 % or 4.56 to 453.05 while the Dow Jones Industrial Average was up 0.2 %


( S ( NP-SBJ ( NP ( NNP Richard ) ( NNP Bruno ) ) ( NP ( NP ( NN head ) ) ( PP ( IN of ) ( NP ( NNP OTC ) ( NN trading ) ) ) ( PP-LOC ( IN at ) ( NP ( NNP PaineWebber ) ) ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-1 ( DT the ) ( NNP OTC ) ( NN market ) ) ( VP ( VBZ has ) ( NP ( NP ( DT a ) ( NN habit ) ) ( PP ( IN of ) ( S-NOM ( VP ( VBG lagging ) ( NP ( NP ( JJ big ) ( NNS moves ) ) ( PP-LOC ( IN on ) ( NP ( DT the ) ( NNP New ) ( NNP York ) ( NNP Stock ) ( NNP Exchange ) ) ) ) ) ) ) ) ) ) ) ) )

Richard Bruno head of OTC trading at PaineWebber said the OTC market has a habit of lagging big moves on the New York Stock Exchange


( S ( SBAR-ADV ( IN While ) ( S ( NP-SBJ ( DT the ) ( JJ industrial ) ( NN average ) ) ( VP ( VBD rallied ) ( PP-TMP ( IN on ) ( NP ( NNP Monday ) ) ) ( PP-TMP ( VBG following ) ( NP ( NP ( JJ last ) ( NNP Friday ) ( POS 's ) ) ( NN collapse ) ) ) ) ) ) ( NP-SBJ ( NP ( DT the ) ( NNP OTC ) ( NN market ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBD did ) ( RB n't ) ( VP ( VB suffer ) ( ADVP-MNR ( RB too ) ( RB badly ) ) ( PP-TMP ( IN during ) ( NP ( DT the ) ( NN correction ) ) ) ) ) ) ) ) ( VP ( VBD tumbled ) ) )

While the industrial average rallied on Monday following last Friday 's collapse the OTC market which did n't suffer too badly during the correction tumbled


( S ( S-TPC-2 ( NP-SBJ ( PRP$ Our ) ( NN market ) ) ( VP ( VBD got ) ( VP ( VB hit ) ( ADVP-MNR ( ADVP ( NP ( DT a ) ( NN lot ) ) ( RBR harder ) ) ) ( PP-TMP ( IN on ) ( NP ( NNP Monday ) ) ) ( PP-1 ( IN than ) ( NP ( DT the ) ( JJ listed ) ( NN market ) ) ) ) ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Bruno ) ) ( VP ( VBD said ) ) )

Our market got hit a lot harder on Monday than the listed market Mr. Bruno said


( S ( NP-SBJ ( PRP We ) ) ( VP ( VBP 're ) ( VP ( VP ( ADVP ( RB just ) ) ( VBG recovering ) ) ( CC and ) ( VP ( VBG getting ) ( ADVP-DIR ( RB back ) ( PP ( TO to ) ( NP ( NP ( NN business ) ) ( ADJP ( RB as ) ( JJ usual ) ) ) ) ) ) ) ) )

We 're just recovering and getting back to business as usual


( S ( NP-SBJ-1 ( PRP I ) ) ( VP ( VBP 'm ) ( VP ( VBN encouraged ) ( PP ( IN by ) ( NP-LGS ( DT the ) ( NN action ) ) ) ) ) )

I 'm encouraged by the action


( S ( NP-SBJ ( DT The ) ( NN trading ) ( NN pace ) ) ( VP ( VBD was ) ( ADJP-PRD ( JJ busy ) ) ( PP ( IN with ) ( S-NOM ( NP-SBJ ( NP ( CD 4,343 ) ( NNS issues ) ) ( CC and ) ( NP ( QP ( CD 147.6 ) ( CD million ) ) ( NNS shares ) ) ) ( VP ( VBG changing ) ( NP ( NNS hands ) ) ) ) ) ) )

The trading pace was busy with 4,343 issues and 147.6 million shares changing hands


( S ( NP-SBJ ( VBG Advancing ) ( NNS issues ) ) ( VP ( VBP beat ) ( NP ( VBG declining ) ( NNS ones ) ) ( ADVP ( CD 1,271 ) ( TO to ) ( CD 811 ) ) ) )

Advancing issues beat declining ones 1,271 to 811


( S ( NP-SBJ ( NP ( JJ Much ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN jockeying ) ) ( PP ( IN by ) ( NP ( NNP OTC ) ( NNS traders ) ( CC and ) ( NNS investors ) ) ) ) ) ) ( VP ( VBD centered ) ( PP-CLR ( IN on ) ( NP ( NP ( NNS shares ) ) ( PP ( IN of ) ( NP ( NP ( NNS companies ) ) ( SBAR ( WHNP-2 ( WDT that ) ) ( S ( VP ( MD might ) ( VP ( VB be ) ( VP ( ADVP-MNR ( RB financially ) ) ( VBN affected ) ( PP ( IN by ) ( NP-LGS ( NP ( NN damage ) ) ( PP ( IN from ) ( NP ( NP ( DT the ) ( JJ devastating ) ( NN earthquake ) ) ( PP-LOC ( IN in ) ( NP ( JJ northern ) ( NNP California ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Much of the jockeying by OTC traders and investors centered on shares of companies that might be financially affected by damage from the devastating earthquake in northern California


( S ( SBAR-TMP ( IN As ) ( S ( NP-SBJ ( NNS investors ) ) ( VP ( VBD speculated ) ( PP-CLR ( IN about ) ( NP ( DT the ) ( ADJP ( JJ long ) ( CC and ) ( JJ short-term ) ) ( NNS implications ) ) ) ) ) ) ( NP-SBJ-1 ( NP ( NNS shares ) ) ( PP ( IN of ) ( NP ( NP ( DT a ) ( NN number ) ) ( PP ( IN of ) ( NP ( NP ( NNS companies ) ) ( SBAR ( WHNP-2 ( WDT that ) ) ( S ( VP ( MD might ) ( VP ( CC either ) ( VP ( VB profit ) ) ( CC or ) ( VP ( VB face ) ( NP ( NNS problems ) ) ) ( PP-PRP ( IN because ) ( IN of ) ( NP ( DT the ) ( NN disaster ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBD were ) ( VP ( ADVP-MNR ( RB actively ) ) ( VBN traded ) ) ) )

As investors speculated about the long and short-term implications shares of a number of companies that might either profit or face problems because of the disaster were actively traded


( X ( S-ADV ( VP ( VBG Heading ) ( NP ( DT the ) ( NN list ) ) ) ) ( NP ( NP ( NN insurance ) ( NN construction ) ( CC and ) ( NN technology ) ( NNS companies ) ) ( VP ( VBN located ) ( PP-LOC-CLR ( IN in ) ( NP ( DT the ) ( NNP San ) ( NNP Francisco ) ( NNP Bay ) ( NNP Area ) ) ) ) ) )

Heading the list insurance construction and technology companies located in the San Francisco Bay Area


( S ( NP-SBJ ( JJ Insurance-related ) ( NNS stocks ) ) ( VP ( VBD were ) ( ADJP-PRD ( JJ mixed ) ) ( SBAR-ADV ( IN as ) ( S ( NP-SBJ-1 ( NNS investors ) ) ( VP ( VBD tried ) ( S ( VP ( TO to ) ( VP ( VB figure ) ( PRT ( RP out ) ) ( SBAR ( WHADVP ( WRB how ) ) ( S ( VP ( TO to ) ( VP ( VB assess ) ( NP ( NP ( DT the ) ( NN impact ) ) ( PP ( IN of ) ( NP ( DT the ) ( NX ( NX ( NN property ) ( NN damage ) ) ( CC and ) ( NX ( NNS deaths ) ) ) ) ) ( PP-LOC ( IN on ) ( NP ( DT those ) ( NNS concerns ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Insurance-related stocks were mixed as investors tried to figure out how to assess the impact of the property damage and deaths on those concerns


( S ( NP-SBJ ( NNS Traders ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NP ( JJ property-casualty ) ( NNS companies ) ) ( PP ( IN with ) ( NP ( DT the ) ( JJS heaviest ) ( NN exposure ) ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NNP San ) ( NNP Francisco ) ( NN area ) ) ) ) ( VP ( VBP include ) ( NP ( NP ( NP ( DT the ) ( NNP OTC ) ( POS 's ) ) ( NNP Safeco ) ) ( CC and ) ( NP ( NNP Ohio ) ( NNP Casualty ) ) ) ) ) ) ) )

Traders said property-casualty companies with the heaviest exposure in the San Francisco area include the OTC 's Safeco and Ohio Casualty


( S ( NP-SBJ ( NP ( NNP Frank ) ( NNP Gilmartin ) ) ( NP ( NP ( DT a ) ( NN trader ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBZ follows ) ( NP ( NN insurance ) ( NNS stocks ) ) ( PP-PRP ( IN for ) ( NP ( NNP Fox-Pitt ) ( NNP Kelton ) ) ) ) ) ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-2 ( PRP$ his ) ( NN strategy ) ) ( VP ( VBD was ) ( S-PRD ( VP ( TO to ) ( VP ( VB sell ) ( ADVP-TMP ( RB early ) ) ) ) ) ) ) ) ) )

Frank Gilmartin a trader who follows insurance stocks for Fox-Pitt Kelton said his strategy was to sell early


( S ( RB Then ) ( SBAR-ADV ( IN if ) ( S ( NP-SBJ ( DT the ) ( NNS stocks ) ) ( VP ( VBD fell ) ( ADVP-MNR ( RB sharply ) ) ) ) ) ( NP-SBJ-3 ( PRP he ) ) ( VP ( VBD planned ) ( S ( VP ( TO to ) ( VP ( VB begin ) ( S ( VP ( VBG buying ) ( NP ( PRP them ) ) ( ADVP-MNR ( RB aggressively ) ) ) ) ) ) ) ( PP ( IN on ) ( NP ( DT the ) ( NN theory ) ( SBAR ( IN that ) ( S ( NP-SBJ-5 ( NP ( DT the ) ( NNS companies ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBP insure ) ( PP-CLR ( IN against ) ( NP ( NP ( NN property ) ( NN damage ) ) ( CC and ) ( NP ( NNS accidents ) ) ) ) ) ) ) ) ( VP ( MD will ) ( VP ( VB have ) ( S ( VP ( TO to ) ( VP ( VB raise ) ( NP ( NNS rates ) ) ( ADVP-TMP ( RB eventually ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB compensate ) ( PP-CLR ( IN for ) ( NP ( NP ( DT the ) ( NNS claims ) ) ( SBAR ( S ( NP-SBJ ( PRP they ) ) ( VP ( MD will ) ( VP ( VB pay ) ( PP-DTV ( TO to ) ( NP ( NP ( NN earthquake ) ( NNS victims ) ) ( CC and ) ( NP ( NP ( NNS victims ) ) ( PP ( IN of ) ( NP ( NP ( JJ last ) ( NN month ) ( POS 's ) ) ( NNP Hurricane ) ( NNP Hugo ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Then if the stocks fell sharply he planned to begin buying them aggressively on the theory that the companies that insure against property damage and accidents will have to raise rates eventually to compensate for the claims they will pay to earthquake victims and victims of last month 's Hurricane Hugo


( S ( ADVP ( RB As ) ( RB well ) ) ( NP-SBJ ( NP ( NNS reinsurers ) ) ( CC and ) ( NP ( NN insurance ) ( NN brokerage ) ( NNS companies ) ) ) ( VP ( MD will ) ( VP ( VB have ) ( NP ( JJ improved ) ( NNS profits ) ) ) ) )

As well reinsurers and insurance brokerage companies will have improved profits


( S ( NP-SBJ ( JJ Many ) ( NNS investors ) ) ( VP ( VBD expected ) ( S ( NP-SBJ ( NP ( NN damage ) ) ( PP ( IN from ) ( NP ( DT the ) ( NN hurricane ) ) ) ) ( VP ( TO to ) ( VP ( VB be ) ( NP-PRD ( NP ( DT the ) ( NN catalyst ) ) ( PP ( IN for ) ( NP ( NP ( JJR higher ) ( NNS rates ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( NN industry ) ) ( SBAR ( WHNP-2 ( WDT which ) ) ( S ( VP ( VBZ has ) ( VP ( VBN been ) ( VP ( VBN depressed ) ( PP-PRP ( IN because ) ( IN of ) ( NP ( NP ( JJ low ) ( NNS rates ) ) ( VP ( VBG arising ) ( PP-DIR ( IN from ) ( NP ( JJ intense ) ( NN competition ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Many investors expected damage from the hurricane to be the catalyst for higher rates in the industry which has been depressed because of low rates arising from intense competition


( S ( CC But ) ( NP-SBJ ( NNP Mr. ) ( NNP Gilmartin ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NN hurricane ) ( NN damage ) ) ( VP ( VBD was ) ( RB n't ) ( ADJP-PRD ( JJ extensive ) ( RB enough ) ( S ( VP ( TO to ) ( VP ( VB prompt ) ( NP ( NN premium ) ( NNS boosts ) ) ) ) ) ) ) ) ) ) )

But Mr. Gilmartin said the hurricane damage was n't extensive enough to prompt premium boosts


( S ( S-TPC-1 ( NP-SBJ ( DT The ) ( NNS companies ) ) ( ADVP-TMP ( RB just ) ) ( VP ( VBD gave ) ( PRT ( RP back ) ) ( SBAR-NOM ( WHNP-2 ( WP what ) ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBD had ) ( VP ( VBN reserved ) ( PP-PRP ( IN for ) ) ) ) ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBD said ) ) )

The companies just gave back what they had reserved for he said


( S ( ADVP-TMP ( RB Now ) ) ( S ( NP-SBJ-1 ( PRP they ) ) ( VP ( MD 'll ) ( VP ( VB have ) ( S ( VP ( TO to ) ( VP ( VB increase ) ( NP ( PRP$ their ) ( NNS coffers ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB protect ) ( PP-PRP ( IN for ) ( NP ( DT the ) ( NN future ) ) ) ) ) ) ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( DT that ) ) ( VP ( VBZ means ) ( NP ( NN rate ) ( NNS increases ) ) ) ) )

Now they 'll have to increase their coffers to protect for the future and that means rate increases


( S ( NP-SBJ ( JJ Overall ) ( NNP OTC ) ( NN insurance ) ( NNS issues ) ) ( VP ( VBD were ) ( ADJP-PRD ( JJ mixed ) ) ) )

Overall OTC insurance issues were mixed


( S ( NP-SBJ ( NNP Safeco ) ) ( VP ( VBD fell ) ( NP-EXT ( CD 1\/8 ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 32 ) ( CD 5\/8 ) ) ) ) ( PP ( IN on ) ( NP ( CD 462,900 ) ( NNS shares ) ) ) ) )

Safeco fell 1\/8 to 32 5\/8 on 462,900 shares


( S ( NP-SBJ ( NNP Ohio ) ( NNP Casualty ) ) ( VP ( VBD rose ) ( NP-EXT ( CD 1\/4 ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 51 ) ( CD 3\/4 ) ) ) ) ( PP ( IN on ) ( NP ( CD 137,200 ) ( NNS shares ) ) ) ) )

Ohio Casualty rose 1\/4 to 51 3\/4 on 137,200 shares


( S ( NP-SBJ ( NNP St. ) ( NNP Paul ) ( NNP Cos. ) ) ( VP ( VBD jumped ) ( NP-EXT ( CD 2 ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 59 ) ( CD 3\/4 ) ) ) ) ( PP ( IN on ) ( NP ( CD 517,500 ) ( NNS shares ) ) ) ) )

St. Paul Cos. jumped 2 to 59 3\/4 on 517,500 shares


( S ( S ( NP-SBJ ( NNP Academy ) ( NNP Insurance ) ) ( VP ( VBD fell ) ( NP-EXT ( CD 1\/32 ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 1 ) ( CD 3\/16 ) ) ) ) ) ) ( CC but ) ( S ( NP-SBJ ( NN volume ) ) ( VP ( VBD totaled ) ( NP ( QP ( CD 1.2 ) ( CD million ) ) ( NNS shares ) ) ) ) )

Academy Insurance fell 1\/32 to 1 3\/16 but volume totaled 1.2 million shares


( S ( NP-SBJ ( DT The ) ( NNP Nasdaq ) ( NNP Insurance ) ( NNP Index ) ) ( VP ( VBD jumped ) ( NP-EXT ( CD 4.15 ) ) ( PP-DIR ( TO to ) ( NP ( CD 529.32 ) ) ) ( PP ( IN on ) ( NP ( DT the ) ( NN day ) ) ) ( SBAR-ADV ( IN while ) ( S ( NP-SBJ ( NP ( DT the ) ( NN barometer ) ) ( PP ( IN of ) ( NP ( JJ big ) ( NN insurance ) ( CC and ) ( NN banking ) ( NNS issues ) ) ) ) ( VP ( VBD climbed ) ( NP-EXT ( CD 1.72 ) ) ( PP-DIR ( TO to ) ( NP ( CD 455.29 ) ) ) ) ) ) ) )

The Nasdaq Insurance Index jumped 4.15 to 529.32 on the day while the barometer of big insurance and banking issues climbed 1.72 to 455.29


( S ( NP-SBJ ( NNS Investors ) ) ( VP ( VBP expect ) ( S ( NP-SBJ ( NP ( NNP SunGard ) ( NNP Data ) ( NNP Systems ) ) ( NP ( NP ( DT a ) ( NN company ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBZ provides ) ( NP ( NN disaster ) ( NN recovery ) ( NNS services ) ) ( PP-PRP ( IN for ) ( NP ( JJ computer-dependent ) ( NNS businesses ) ) ) ) ) ) ) ) ( VP ( TO to ) ( VP ( VB profit ) ( PP-CLR ( IN from ) ( NP ( DT the ) ( NN earthquake ) ) ) ) ) ) ) )

Investors expect SunGard Data Systems a company that provides disaster recovery services for computer-dependent businesses to profit from the earthquake


( S ( NP-SBJ ( NP ( NNP SunGard ) ( POS 's ) ) ( NN stock ) ) ( VP ( VBD rose ) ( NP-EXT ( QP ( CD 1 ) ( CD 3\/4 ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 21 ) ( CD 1\/4 ) ) ) ) ( PP ( IN on ) ( NP ( CD 194,000 ) ( NNS shares ) ) ) ) )

SunGard 's stock rose 1 3\/4 to 21 1\/4 on 194,000 shares


( S ( NP-SBJ-1 ( NP ( NNP Shares ) ) ( PP ( IN of ) ( NP ( NP ( NNP Kasler ) ) ( NP ( DT a ) ( NNP California ) ( NN road ) ( CC and ) ( NN bridge ) ( NN builder ) ) ) ) ) ( VP ( VBD were ) ( VP ( ADVP-MNR ( RB heavily ) ) ( VBN traded ) ( S-ADV ( VP ( VBG jumping ) ( NP-EXT ( QP ( CD 2 ) ( CD 1\/8 ) ) ) ( PP ( TO to ) ( NP ( QP ( CD 9 ) ( CD 7\/8 ) ) ) ) ( PP ( IN on ) ( NP ( QP ( CD 1.3 ) ( CD million ) ) ( NNS shares ) ) ) ) ) ) ) )

Shares of Kasler a California road and bridge builder were heavily traded jumping 2 1\/8 to 9 7\/8 on 1.3 million shares


( S ( NP-SBJ ( NNP Guy ) ( NNP F. ) ( NNP Atkinson ) ) ( VP ( VBD added ) ( NP ( CD 7\/8 ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 16 ) ( CD 7\/8 ) ) ) ) ( PP ( IN on ) ( NP ( CD 335,700 ) ( NNS shares ) ) ) ) )

Guy F. Atkinson added 7\/8 to 16 7\/8 on 335,700 shares


( S ( NP-SBJ ( NP ( DT The ) ( NN company ) ) ( VP ( VBN based ) ( PP-LOC-CLR ( IN in ) ( NP ( NNP San ) ( NNP Francisco ) ) ) ) ) ( VP ( VBZ provides ) ( NP ( JJ industrial ) ( NN infrastructure ) ( NN engineering ) ( CC and ) ( NN construction ) ( NNS services ) ) ) )

The company based in San Francisco provides industrial infrastructure engineering and construction services


( S ( NP-SBJ ( NNS Traders ) ) ( VP ( VBD were ) ( ADVP-TMP ( RB initially ) ) ( ADJP-PRD ( JJ nervous ) ) ( PP ( IN about ) ( NP ( NP ( NNS shares ) ) ( PP ( IN of ) ( NP ( NP ( NNS companies ) ) ( PP ( VBG including ) ( NP ( NP ( JJ many ) ( JJ leading ) ( NNP OTC ) ( NN computer ) ( NNS companies ) ) ( PP ( JJ such ) ( IN as ) ( NP ( NNP Apple ) ( NNP Computer ) ) ) ) ) ( PP ( IN with ) ( NP ( NP ( NNS offices ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( NN vicinity ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN area ) ) ( VP ( VBN damaged ) ( PP ( IN by ) ( NP-LGS ( DT the ) ( NN quake ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Traders were initially nervous about shares of companies including many leading OTC computer companies such as Apple Computer with offices in the vicinity of the area damaged by the quake


( S ( CC But ) ( NP-SBJ ( NP ( JJS most ) ) ( PP ( IN of ) ( NP ( DT those ) ( NNS stocks ) ) ) ) ( VP ( VBD fared ) ( ADVP-MNR ( RB well ) ) ) )

But most of those stocks fared well


( S ( S ( NP-SBJ ( NNP Apple ) ( NNP Computer ) ) ( VP ( VBD gained ) ( NP ( CD 1 ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 48 ) ( CD 1\/4 ) ) ) ) ) ) ( S ( NP-SBJ ( NNP Ashton-Tate ) ) ( VP ( VBD rose ) ( NP-EXT ( CD 3\/8 ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 10 ) ( CD 3\/8 ) ) ) ) ) ) )

Apple Computer gained 1 to 48 1\/4 Ashton-Tate rose 3\/8 to 10 3\/8


( S ( NP-SBJ ( NNP Intel ) ) ( ADVP ( RB also ) ) ( VP ( VBD added ) ( NP ( CD 3\/8 ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 33 ) ( CD 7\/8 ) ) ) ) ) )

Intel also added 3\/8 to 33 7\/8


( S ( CC But ) ( NP-SBJ ( NNP Sun ) ( NNP Microsystems ) ) ( VP ( VBD slipped ) ( NP-EXT ( CD 1\/4 ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 17 ) ( CD 1\/4 ) ) ) ) ) )

But Sun Microsystems slipped 1\/4 to 17 1\/4


( S ( NP-SBJ ( NP ( NNS Shares ) ) ( PP ( IN of ) ( NP ( NP ( NN biotechnology ) ( NNS companies ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN area ) ) ) ) ) ) ( VP ( VBD were ) ( ADVP ( RB also ) ) ( ADJP-PRD ( JJR higher ) ) ) )

Shares of biotechnology companies in the area were also higher


( S ( S ( NP-SBJ ( NNP Chiron ) ) ( VP ( VBD was ) ( ADVP-PRD ( RB up ) ( NP ( CD 1\/2 ) ) ( PP ( TO to ) ( NP ( CD 27 ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NNP Cetus ) ) ( VP ( VBD gained ) ( NP ( CD 1\/2 ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 16 ) ( CD 3\/8 ) ) ) ) ) ) )

Chiron was up 1\/2 to 27 and Cetus gained 1\/2 to 16 3\/8


( S ( NP-SBJ ( NP ( DT The ) ( NNS stocks ) ) ( PP ( IN of ) ( NP ( NP ( JJ computer-related ) ( NNS companies ) ) ( VP ( VBN located ) ( PP-LOC-CLR ( IN outside ) ( NP ( NNP California ) ) ) ) ) ) ) ( VP ( VBD improved ) ( ADVP ( RB too ) ) ) )

The stocks of computer-related companies located outside California improved too


( S ( S ( NP-SBJ ( NNP Microsoft ) ) ( VP ( VBD advanced ) ( NP-EXT ( QP ( CD 1 ) ( CD 7\/8 ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 80 ) ( CD 1\/2 ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NNP Lotus ) ( NNP Development ) ) ( VP ( VBD added ) ( NP ( QP ( CD 1 ) ( CD 1\/4 ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 32 ) ( CD 1\/2 ) ) ) ) ) ) )

Microsoft advanced 1 7\/8 to 80 1\/2 and Lotus Development added 1 1\/4 to 32 1\/2


( S ( PP-LOC ( IN In ) ( NP ( JJ other ) ( JJ earthquake-related ) ( NN news ) ) ) ( S ( NP-SBJ-1 ( NP ( NNP Hambrecht ) ( CC & ) ( NNP Quist ) ( POS 's ) ) ( NNP OTC ) ( NN market ) ( NNS makers ) ) ( VP ( VBD were ) ( VP ( VBN excused ) ( PP-CLR ( IN from ) ( NP ( NN trading ) ) ) ( NP-TMP ( NN yesterday ) ) ) ) ) ( CC and ) ( S ( NP-SBJ-2 ( PRP$ its ) ( NNS positions ) ) ( VP ( VBD were ) ( VP ( VBN frozen ) ( PP-TMP ( IN for ) ( NP ( DT the ) ( NN day ) ) ) ( PP ( IN by ) ( NP-LGS ( NP ( DT the ) ( NNP National ) ( NNP Association ) ) ( PP ( IN of ) ( NP ( NNP Securities ) ( NNP Dealers ) ) ) ) ) ) ) ) )

In other earthquake-related news Hambrecht & Quist 's OTC market makers were excused from trading yesterday and its positions were frozen for the day by the National Association of Securities Dealers


( S ( NP-SBJ-1 ( NN Power ) ) ( VP ( MD could ) ( RB n't ) ( VP ( VB be ) ( VP ( VBN restored ) ( PP-LOC ( IN at ) ( NP ( NP ( DT the ) ( NN company ) ( POS 's ) ) ( NNP San ) ( NNP Francisco ) ( NNS headquarters ) ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB allow ) ( NP ( NN trading ) ) ) ) ) ( NP-TMP ( NN yesterday ) ( NN morning ) ) ) ) ) )

Power could n't be restored at the company 's San Francisco headquarters to allow trading yesterday morning


( S ( PP-LOC ( IN In ) ( NP ( NNP New ) ( NNP York ) ) ) ( NP-SBJ ( NP ( NNP Roger ) ( NNP Killion ) ) ( NP ( DT a ) ( NNP Hambrecht ) ( JJ executive ) ( NN vice ) ( NN president ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBZ expects ) ( S ( NP-SBJ ( NP ( NNP OTC ) ( NN trading ) ) ( PP ( IN at ) ( NP ( DT the ) ( NN company ) ) ) ) ( VP ( TO to ) ( VP ( VB resume ) ( NP-TMP ( DT this ) ( NN morning ) ) ( PP-LOC ( CC either ) ( PP ( IN in ) ( NP ( NNP New ) ( NNP York ) ) ) ( CC or ) ( PP ( IN in ) ( NP ( NNP San ) ( NNP Francisco ) ) ) ) ) ) ) ) ) ) ) )

In New York Roger Killion a Hambrecht executive vice president said he expects OTC trading at the company to resume this morning either in New York or in San Francisco


( S ( PP-LOC ( IN In ) ( NP ( JJ other ) ( NN trading ) ) ) ( NP-SBJ-2 ( NNP Medco ) ( NNP Containment ) ( NNP Services ) ) ( VP ( VBD gained ) ( NP ( CD 7\/8 ) ) ( PP-DIR ( TO to ) ( NP ( CD 15 ) ) ) ( PP ( IN on ) ( NP ( QP ( CD 1.9 ) ( CD million ) ) ( NNS shares ) ) ) ( PP-TMP ( IN after ) ( S-NOM ( VP ( VBG reporting ) ( NP ( NP ( DT a ) ( NN loss ) ) ( PP ( IN for ) ( NP ( NP ( DT the ) ( JJ first ) ( NN quarter ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBD ended ) ( NP-TMP ( NNP Sept. ) ( CD 30 ) ) ) ) ) ) ) ) ) ) ) ) )

In other trading Medco Containment Services gained 7\/8 to 15 on 1.9 million shares after reporting a loss for the first quarter which ended Sept. 30


( S ( NP-SBJ ( DT The ) ( NN company ) ) ( VP ( VBD earned ) ( NP ( QP ( CD 6.6 ) ( CD million ) ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJ year-earlier ) ( NN quarter ) ) ) ) )

The company earned 6.6 million in the year-earlier quarter


( S ( NP-SBJ ( NP ( NNP Jaguar ) ( POS 's ) ) ( JJ American ) ( JJ depositary ) ( NNS receipts ) ) ( VP ( VBD added ) ( NP ( CD 3\/8 ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 10 ) ( CD 3\/4 ) ) ) ) ( PP ( IN on ) ( NP ( NP ( NN volume ) ) ( PP ( IN of ) ( NP ( QP ( CD 1.1 ) ( CD million ) ) ) ) ) ) ) )

Jaguar 's American depositary receipts added 3\/8 to 10 3\/4 on volume of 1.1 million


( S ( S-TPC-1 ( NP-SBJ ( NP ( NNS Analysts ) ) ( PP-LOC ( IN in ) ( NP ( NNP London ) ) ) ) ( VP ( VBP believe ) ( SBAR ( S ( NP-SBJ ( NNS investors ) ) ( PP ( IN despite ) ( NP ( PRP$ their ) ( NN stampede ) ( S ( VP ( TO to ) ( VP ( VB dump ) ( NP ( NN takeover ) ( NNS stocks ) ) ) ) ) ) ) ( VP ( MD should ) ( VP ( VB hold ) ( PRT ( RP on ) ) ( ADVP-MNR ( RB tight ) ) ( PP-CLR ( TO to ) ( NP ( PRP$ their ) ( NNP Jaguar ) ( NNS shares ) ) ) ) ) ) ) ) ) ( NP-SBJ ( NP ( DT this ) ( NN newspaper ) ( POS 's ) ) ( VP-TTL ( VBN Heard ) ( PP-LOC ( IN on ) ( NP ( DT the ) ( NN Street ) ) ) ) ( NN column ) ) ( VP ( VBD said ) ( NP-TMP ( NN yesterday ) ) ) )

Analysts in London believe investors despite their stampede to dump takeover stocks should hold on tight to their Jaguar shares this newspaper 's Heard on the Street column said yesterday


( S ( NP-SBJ ( NNP Amgen ) ) ( VP ( VBD rose ) ( NP-EXT ( QP ( CD 1 ) ( CD 1\/2 ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 50 ) ( CD 3\/4 ) ) ) ) ( PP-LOC ( IN in ) ( NP ( JJ heavy ) ( NN trading ) ) ) ) )

Amgen rose 1 1\/2 to 50 3\/4 in heavy trading


( S ( NP-SBJ ( NNS Analysts ) ) ( VP ( VBP figure ) ( SBAR ( S ( NP-SBJ ( NNP Amgen ) ) ( VP ( MD could ) ( VP ( VB benefit ) ( PP-PRP ( IN as ) ( NP ( NP ( DT a ) ( NN result ) ) ( PP ( IN of ) ( NP ( NP ( NNS troubles ) ) ( VP ( VBG facing ) ( NP ( NP ( PRP$ its ) ( NN competitor ) ) ( NP ( NNP Genetics ) ( NNP Institute ) ) ) ) ( PP ( IN over ) ( NP ( NP ( DT the ) ( NN anti-anemia ) ( NN drug ) ) ( NP ( NNP EPO ) ) ) ) ) ) ) ) ) ) ) ) ) )

Analysts figure Amgen could benefit as a result of troubles facing its competitor Genetics Institute over the anti-anemia drug EPO


( S ( NP-SBJ ( NNP Genetics ) ( NNP Institute ) ) ( VP ( VBD disclosed ) ( ADVP-TMP ( RB recently ) ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( PRP it ) ) ( VP ( VBZ is ) ( VP ( VBN embroiled ) ( PP-LOC-CLR ( IN in ) ( NP ( NP ( DT a ) ( NN dispute ) ) ( PP ( IN with ) ( NP ( NP ( NNP Boehringer ) ( NNP Mannheim ) ) ( SBAR ( WHNP-2 ( WDT which ) ) ( S ( VP ( VBZ distributes ) ( NP ( DT the ) ( NN drug ) ) ) ) ) ) ) ( VP ( VBG regarding ) ( NP ( NP ( DT the ) ( NN usability ) ) ( PP ( IN of ) ( NP ( DT some ) ( NNS batches ) ) ) ) ) ) ) ) ) ) ) ) )

Genetics Institute disclosed recently that it is embroiled in a dispute with Boehringer Mannheim which distributes the drug regarding the usability of some batches


( S ( NP-SBJ ( NNP United ) ( NNP Merchants ) ( CC & ) ( NNP Manufacturers ) ( NNP Inc. ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NP ( PRP$ its ) ( NN president ) ) ( NP ( NNP Uzi ) ( NNP Ruskin ) ) ) ( VP ( VBD withdrew ) ( NP ( PRP$ his ) ( NN proposal ) ( S ( VP ( TO to ) ( VP ( VB acquire ) ( NP ( NP ( NN control ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNP New ) ( NNP York ) ( JJ textile ) ( CC and ) ( NN clothing ) ( NN company ) ) ) ) ) ) ) ) ) ) ) ) )

United Merchants & Manufacturers Inc. said its president Uzi Ruskin withdrew his proposal to acquire control of the New York textile and clothing company


( S ( NP-TMP ( JJ Last ) ( NN month ) ) ( NP-SBJ-1 ( NNP Mr. ) ( NNP Ruskin ) ) ( VP ( VBD proposed ) ( PP-LOC ( IN among ) ( NP ( JJ other ) ( NNS things ) ) ) ( S ( VP ( TO to ) ( VP ( VB buy ) ( NP ( NP ( QP ( CD 3.5 ) ( CD million ) ) ( NNS shares ) ) ( CC or ) ( NP ( CD 38 ) ( NN % ) ) ) ( PP-CLR ( IN for ) ( NP ( NP ( CD 4 ) ) ( NP-ADV ( RB apiece ) ) ) ) ) ) ) ) )

Last month Mr. Ruskin proposed among other things to buy 3.5 million shares or 38 % for 4 apiece


( S ( PP ( VBN Coupled ) ( PP ( IN with ) ( NP ( NP ( PRP$ his ) ( JJ current ) ( QP ( CD 1.2 ) ( CD million ) ) ( NNS shares ) ) ( CC and ) ( NP ( NP ( CD 4 ) ( NN % ) ) ( VP ( VBN held ) ( PP ( IN by ) ( NP-LGS ( DT an ) ( NN associate ) ) ) ) ) ) ) ) ( NP-SBJ ( DT the ) ( NN stake ) ) ( VP ( MD would ) ( VP ( VB have ) ( VP ( VBN given ) ( NP ( PRP him ) ) ( NP ( NP ( NN control ) ) ( PP ( IN of ) ( NP ( NP ( CD 55 ) ( NN % ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN concern ) ) ) ) ) ) ) ) ) )

Coupled with his current 1.2 million shares and 4 % held by an associate the stake would have given him control of 55 % of the concern


( S ( PP-LOC ( IN In ) ( NP ( DT a ) ( NNP Securities ) ( CC and ) ( NNP Exchange ) ( NNP Commission ) ( NN filing ) ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Ruskin ) ) ( VP ( VBD had ) ( VP ( VBN said ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( NNS holders ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( JJ other ) ( CD 45 ) ( NN % ) ) ( PP ( IN of ) ( NP ( NNP United ) ( NNP Merchants ) ) ) ) ) ) ( VP ( MD would ) ( VP ( VB receive ) ( NP ( NP ( JJ one-half ) ( NN share ) ) ( PP ( IN of ) ( NP ( DT a ) ( JJ new ) ( JJ preferred ) ( NN stock ) ) ) ( PP ( IN for ) ( NP ( NP ( DT each ) ) ( PP ( IN of ) ( NP ( PRP$ their ) ( NNS shares ) ) ) ) ) ) ) ) ) ) ) ) )

In a Securities and Exchange Commission filing Mr. Ruskin had said that holders of the other 45 % of United Merchants would receive one-half share of a new preferred stock for each of their shares


( S ( NP-SBJ ( NP ( DT A ) ( JJ special ) ( NN committee ) ) ( PP ( IN of ) ( NP ( NNP United ) ( NNP Merchants ) ( NNS directors ) ) ) ) ( VP ( VBD said ) ( SBAR ( IN that ) ( S ( PP ( IN in ) ( NP ( NP ( NN view ) ) ( PP ( IN of ) ( NP ( NP ( NNS uncertainties ) ) ( PP ( VBG regarding ) ( NP ( JJ various ) ( ADJP ( JJ legal ) ( CC and ) ( JJ financial ) ) ( NNS considerations ) ) ) ) ) ) ) ( NP-SBJ ( PRP it ) ) ( VP ( MD could ) ( RB n't ) ( VP ( VB recommend ) ( NP ( DT the ) ( NN plan ) ) ( PP-CLR ( TO to ) ( NP ( DT the ) ( JJ full ) ( NN board ) ) ) ) ) ) ) ) )

A special committee of United Merchants directors said that in view of uncertainties regarding various legal and financial considerations it could n't recommend the plan to the full board


( S ( S-TPC-1 ( NP-SBJ ( DT The ) ( NN company ) ) ( VP ( VBZ is ) ( VP ( VBG exploring ) ( PP ( IN with ) ( NP ( DT a ) ( JJ major ) ( JJ financial ) ( NN institution ) ) ) ( NP ( NP ( DT the ) ( NN development ) ) ( PP ( IN of ) ( NP ( DT a ) ( NN plan ) ( S ( VP ( TO to ) ( VP ( VB boost ) ( NP ( NP ( DT the ) ( NN value ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN company ) ) ) ( PP ( IN for ) ( NP ( PRP$ its ) ( NNS holders ) ) ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Ruskin ) ) ( VP ( VBD said ) ) )

The company is exploring with a major financial institution the development of a plan to boost the value of the company for its holders Mr. Ruskin said


( S ( PP-LOC ( IN In ) ( NP ( DT a ) ( JJ separate ) ( NNP SEC ) ( NN filing ) ) ) ( NP-SBJ ( NP ( NNP Albert ) ( NNP Safer ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBZ holds ) ( NP ( NP ( CD 6.46 ) ( NN % ) ) ( PP ( IN of ) ( NP ( NNP United ) ( NNP Merchants ) ) ) ) ) ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBD retained ) ( NP ( NN investment ) ( NN bank ) ( NNP Lazard ) ( NNP Freres ) ( CC & ) ( NNP Co. ) ) ( PP-PRP ( IN for ) ( NP ( NN advice ) ) ) ( SBAR-TMP ( IN as ) ( S ( NP-SBJ-2 ( PRP he ) ) ( VP ( VBZ evaluates ) ( NP ( NP ( DT the ) ( NN possibility ) ) ( PP ( IN of ) ( S-NOM ( VP ( VBG making ) ( NP ( NP ( DT a ) ( NN bid ) ) ( PP ( IN for ) ( NP ( DT the ) ( JJ textile ) ( NN maker ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

In a separate SEC filing Albert Safer who holds 6.46 % of United Merchants said he retained investment bank Lazard Freres & Co. for advice as he evaluates the possibility of making a bid for the textile maker


( S ( PP-TMP ( IN On ) ( NP ( NNP Friday ) ) ) ( NP-SBJ ( NP ( NNP Mr. ) ( NNP Safer ) ) ( NP ( DT a ) ( NAC-LOC ( NNP Newark ) ( NNP N.J. ) ) ( JJ textile ) ( NN businessman ) ) ) ( VP ( VBD signed ) ( NP ( NP ( DT a ) ( NN confidentiality ) ( NN agreement ) ) ( SBAR ( WHPP-1 ( IN under ) ( WHNP ( WDT which ) ) ) ( S ( NP-SBJ ( NNP United ) ( NNP Merchants ) ) ( VP ( MD would ) ( VP ( VB provide ) ( NP ( PRP him ) ) ( PP-CLR ( IN with ) ( NP ( JJ nonpublic ) ( NN information ) ) ) ) ) ) ) ) ) )

On Friday Mr. Safer a Newark N.J. textile businessman signed a confidentiality agreement under which United Merchants would provide him with nonpublic information


( NP ( NP ( NNP Tuesday ) ) ( NP ( NNP October ) ( CD 17 ) ( CD 1989 ) ) )

Tuesday October 17 1989


( S ( NP-SBJ ( NP ( DT The ) ( JJ key ) ( UCP ( NNP U.S. ) ( CC and ) ( JJ foreign ) ) ( JJ annual ) ( NN interest ) ( NNS rates ) ) ( ADVP-LOC ( RB below ) ) ) ( VP ( VP ( VBP are ) ( NP-PRD ( NP ( DT a ) ( NN guide ) ) ( PP ( TO to ) ( NP ( JJ general ) ( NNS levels ) ) ) ) ) ( CC but ) ( VP ( VBP do ) ( RB n't ) ( ADVP-TMP ( RB always ) ) ( VP ( VB represent ) ( NP ( JJ actual ) ( NNS transactions ) ) ) ) ) )

The key U.S. and foreign annual interest rates below are a guide to general levels but do n't always represent actual transactions


( NP ( NP ( JJ PRIME ) ( NN RATE ) ) ( NP ( QP ( CD 10 ) ( CD 1\/2 ) ) ( NN % ) ) )

PRIME RATE 10 1\/2 %


( NP ( NP ( DT The ) ( NN base ) ( NN rate ) ) ( PP-LOC ( IN on ) ( NP ( JJ corporate ) ( NNS loans ) ) ) ( PP-LOC ( IN at ) ( NP ( JJ large ) ( NNP U.S. ) ( NN money ) ( NN center ) ( JJ commercial ) ( NNS banks ) ) ) )

The base rate on corporate loans at large U.S. money center commercial banks


( NP ( NP ( JJ FEDERAL ) ( NNS FUNDS ) ) ( NP ( NP ( NP ( QP ( CD 8 ) ( CD 11\/16 ) ) ( NN % ) ) ( ADJP ( JJ high ) ) ) ( NP ( NP ( QP ( CD 8 ) ( CD 5\/8 ) ) ( NN % ) ) ( ADJP ( JJ low ) ) ) ( NP ( NP ( QP ( CD 8 ) ( CD 5\/8 ) ) ( NN % ) ) ( PP-TMP ( IN near ) ( NP ( NN closing ) ( NN bid ) ) ) ) ( NP ( NP ( QP ( CD 8 ) ( CD 11\/16 ) ) ( NN % ) ) ( VP ( VBN offered ) ) ) ) )

FEDERAL FUNDS 8 11\/16 % high 8 5\/8 % low 8 5\/8 % near closing bid 8 11\/16 % offered


( NP ( NP ( NNS Reserves ) ) ( VP ( VBD traded ) ( PP-LOC ( IN among ) ( NP ( JJ commercial ) ( NNS banks ) ) ) ( PP-PRP ( IN for ) ( NP ( JJ overnight ) ( NN use ) ) ) ( PP ( IN in ) ( NP ( NP ( NNS amounts ) ) ( PP ( IN of ) ( NP ( QP ( CD 1 ) ( CD million ) ) ( QP ( CC or ) ( JJR more ) ) ) ) ) ) ) )

Reserves traded among commercial banks for overnight use in amounts of 1 million or more


( NP ( NP ( NN Source ) ) ( NP ( NNP Fulton ) ( NNP Prebon ) ( PRN ( NP-LOC ( NN U.S.A ) ) ) ( NNP Inc ) ) )

Source Fulton Prebon U.S.A Inc


( NP ( NP ( NN DISCOUNT ) ( NN RATE ) ) ( NP ( CD 7 ) ( NN % ) ) )

DISCOUNT RATE 7 %


( NP ( NP ( DT The ) ( NN charge ) ) ( PP-LOC ( IN on ) ( NP ( NP ( NNS loans ) ) ( PP ( TO to ) ( NP ( JJ depository ) ( NNS institutions ) ) ) ) ) ( PP ( IN by ) ( NP ( DT the ) ( NNP New ) ( NNP York ) ( NNP Federal ) ( NNP Reserve ) ( NNP Bank ) ) ) )

The charge on loans to depository institutions by the New York Federal Reserve Bank


( NP ( NP ( JJ CALL ) ( NN MONEY ) ) ( NP ( NP ( QP ( CD 9 ) ( CD 3\/4 ) ) ( NN % ) ) ( TO to ) ( NP ( CD 10 ) ( NN % ) ) ) )

CALL MONEY 9 3\/4 % to 10 %


( NP ( NP ( DT The ) ( NN charge ) ) ( PP-LOC ( IN on ) ( NP ( NP ( NNS loans ) ) ( PP ( TO to ) ( NP ( NNS brokers ) ) ) ( PP ( IN on ) ( NP ( NN stock ) ( NN exchange ) ( NN collateral ) ) ) ) ) )

The charge on loans to brokers on stock exchange collateral


( NP ( NP ( NP ( JJ COMMERCIAL ) ( NN PAPER ) ) ( VP ( VBN placed ) ( ADVP-MNR ( RB directly ) ) ( PP ( IN by ) ( NP-LGS ( NNP General ) ( NNP Motors ) ( NNP Acceptance ) ( NNP Corp. ) ) ) ) ) ( NP ( NP ( NP ( CD 8.40 ) ( NN % ) ) ( NP-TMP ( QP ( CD 30 ) ( TO to ) ( CD 44 ) ) ( NNS days ) ) ) ( NP ( NP ( CD 8.325 ) ( NN % ) ) ( NP-TMP ( QP ( CD 45 ) ( TO to ) ( CD 59 ) ) ( NNS days ) ) ) ( NP ( NP ( CD 8.10 ) ( NN % ) ) ( NP-TMP ( QP ( CD 60 ) ( TO to ) ( CD 89 ) ) ( NNS days ) ) ) ( NP ( NP ( CD 8 ) ( NN % ) ) ( NP-TMP ( QP ( CD 90 ) ( TO to ) ( CD 119 ) ) ( NNS days ) ) ) ( NP ( NP ( CD 7.85 ) ( NN % ) ) ( NP-TMP ( QP ( CD 120 ) ( TO to ) ( CD 149 ) ) ( NNS days ) ) ) ( NP ( NP ( CD 7.70 ) ( NN % ) ) ( NP-TMP ( QP ( CD 150 ) ( TO to ) ( CD 179 ) ) ( NNS days ) ) ) ( NP ( NP ( CD 7.375 ) ( NN % ) ) ( NP-TMP ( QP ( CD 180 ) ( TO to ) ( CD 270 ) ) ( NNS days ) ) ) ) )

COMMERCIAL PAPER placed directly by General Motors Acceptance Corp. 8.40 % 30 to 44 days 8.325 % 45 to 59 days 8.10 % 60 to 89 days 8 % 90 to 119 days 7.85 % 120 to 149 days 7.70 % 150 to 179 days 7.375 % 180 to 270 days


( NP ( NP ( NNP COMMERCIAL ) ( NNP PAPER ) ) ( NP ( NP ( JJ High-grade ) ( JJ unsecured ) ( NNS notes ) ) ( VP ( VBN sold ) ( PP ( IN through ) ( NP ( NNS dealers ) ) ) ( PP ( IN by ) ( NP-LGS ( JJ major ) ( NNS corporations ) ) ) ( PP ( IN in ) ( NP ( NP ( NNS multiples ) ) ( PP ( IN of ) ( NP ( CD 1,000 ) ) ) ) ) ) ) ( NP ( NP ( NP ( CD 8.50 ) ( NN % ) ) ( NP-TMP ( CD 30 ) ( NNS days ) ) ) ( NP ( NP ( CD 8.40 ) ( NN % ) ) ( NP-TMP ( CD 60 ) ( NNS days ) ) ) ( NP ( NP ( CD 8.375 ) ( NN % ) ) ( NP-TMP ( CD 90 ) ( NNS days ) ) ) ) )

COMMERCIAL PAPER High-grade unsecured notes sold through dealers by major corporations in multiples of 1,000 8.50 % 30 days 8.40 % 60 days 8.375 % 90 days


( NP ( NP ( NP ( NNS CERTIFICATES ) ) ( PP ( IN OF ) ( NP ( NN DEPOSIT ) ) ) ) ( NP ( NP ( NP ( CD 8.05 ) ( NN % ) ) ( NP-TMP ( CD one ) ( NN month ) ) ) ( NP ( NP ( CD 8.02 ) ( NN % ) ) ( NP-TMP ( CD two ) ( NNS months ) ) ) ( NP ( NP ( CD 8 ) ( NN % ) ) ( NP-TMP ( CD three ) ( NNS months ) ) ) ( NP ( NP ( CD 7.98 ) ( NN % ) ) ( NP-TMP ( CD six ) ( NNS months ) ) ) ( NP ( NP ( CD 7.95 ) ( NN % ) ) ( NP-TMP ( CD one ) ( NN year ) ) ) ) )

CERTIFICATES OF DEPOSIT 8.05 % one month 8.02 % two months 8 % three months 7.98 % six months 7.95 % one year


( NP ( NP ( JJ Average ) ) ( PP ( IN of ) ( NP ( NP ( JJ top ) ( NNS rates ) ) ( VP ( VBN paid ) ( PP ( IN by ) ( NP-LGS ( JJ major ) ( NNP New ) ( NNP York ) ( NNS banks ) ) ) ( PP-LOC ( PP ( IN on ) ( NP ( NP ( JJ primary ) ( JJ new ) ( NNS issues ) ) ( PP ( IN of ) ( NP ( JJ negotiable ) ( NNS C.D.s ) ) ) ) ) ( ADVP-TMP ( RB usually ) ) ( PP ( IN on ) ( NP ( NP ( NNS amounts ) ) ( PP ( IN of ) ( NP ( QP ( CD 1 ) ( CD million ) ) ( QP ( CC and ) ( JJR more ) ) ) ) ) ) ) ) ) ) )

Average of top rates paid by major New York banks on primary new issues of negotiable C.D.s usually on amounts of 1 million and more


( S ( NP-SBJ ( DT The ) ( JJ minimum ) ( NN unit ) ) ( VP ( VBZ is ) ( NP-PRD ( CD 100,000 ) ) ) )

The minimum unit is 100,000


( NP ( NP ( NP ( JJ Typical ) ( NNS rates ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( JJ secondary ) ( NN market ) ) ) ) ( NP ( NP ( NP ( CD 8.50 ) ( NN % ) ) ( NP-TMP ( CD one ) ( NN month ) ) ) ( NP ( NP ( CD 8.50 ) ( NN % ) ) ( NP-TMP ( CD three ) ( NNS months ) ) ) ( NP ( NP ( CD 8.45 ) ( NN % ) ) ( NP-TMP ( CD six ) ( NNS months ) ) ) ) )

Typical rates in the secondary market 8.50 % one month 8.50 % three months 8.45 % six months


( NP ( NP ( NNS BANKERS ) ( NNS ACCEPTANCES ) ) ( NP ( NP ( NP ( CD 8.38 ) ( NN % ) ) ( NP-TMP ( CD 30 ) ( NNS days ) ) ) ( NP ( NP ( CD 8.28 ) ( NN % ) ) ( NP-TMP ( CD 60 ) ( NNS days ) ) ) ( NP ( NP ( CD 8.23 ) ( NN % ) ) ( NP-TMP ( CD 90 ) ( NNS days ) ) ) ( NP ( NP ( CD 8.13 ) ( NN % ) ) ( NP-TMP ( CD 120 ) ( NNS days ) ) ) ( NP ( NP ( CD 8.03 ) ( NN % ) ) ( NP-TMP ( CD 150 ) ( NNS days ) ) ) ( NP ( NP ( CD 7.93 ) ( NN % ) ) ( NP-TMP ( CD 180 ) ( NNS days ) ) ) ) )

BANKERS ACCEPTANCES 8.38 % 30 days 8.28 % 60 days 8.23 % 90 days 8.13 % 120 days 8.03 % 150 days 7.93 % 180 days


( NP ( NP ( JJ Negotiable ) ( JJ bank-backed ) ( NN business ) ( NN credit ) ( NNS instruments ) ) ( VP ( ADVP ( RB typically ) ) ( VBG financing ) ( NP ( DT an ) ( NN import ) ( NN order ) ) ) )

Negotiable bank-backed business credit instruments typically financing an import order


( NP ( NP ( NNP LONDON ) ( JJ LATE ) ( NNS EURODOLLARS ) ) ( NP ( NP ( NP ( NP ( QP ( CD 8 ) ( CD 5\/8 ) ) ( NN % ) ) ( TO to ) ( NP ( QP ( CD 8 ) ( CD 1\/2 ) ) ( NN % ) ) ) ( NP-TMP ( CD one ) ( NN month ) ) ) ( NP ( NP ( NP ( QP ( CD 8 ) ( CD 9\/16 ) ) ( NN % ) ) ( TO to ) ( NP ( QP ( CD 8 ) ( CD 7\/16 ) ) ( NN % ) ) ) ( NP-TMP ( CD two ) ( NNS months ) ) ) ( NP ( NP ( NP ( QP ( CD 8 ) ( CD 9\/16 ) ) ( NN % ) ) ( TO to ) ( NP ( QP ( CD 8 ) ( CD 7\/16 ) ) ( NN % ) ) ) ( NP-TMP ( CD three ) ( NNS months ) ) ) ( NP ( NP ( NP ( QP ( CD 8 ) ( CD 1\/2 ) ) ( NN % ) ) ( TO to ) ( NP ( QP ( CD 8 ) ( CD 3\/8 ) ) ( NN % ) ) ) ( NP-TMP ( CD four ) ( NNS months ) ) ) ( NP ( NP ( NP ( QP ( CD 8 ) ( CD 7\/16 ) ) ( NN % ) ) ( TO to ) ( NP ( QP ( CD 8 ) ( CD 5\/16 ) ) ( NN % ) ) ) ( NP-TMP ( CD five ) ( NNS months ) ) ) ( NP ( NP ( NP ( QP ( CD 8 ) ( CD 7\/16 ) ) ( NN % ) ) ( TO to ) ( NP ( QP ( CD 8 ) ( CD 5\/16 ) ) ( NN % ) ) ) ( NP-TMP ( CD six ) ( NNS months ) ) ) ) )

LONDON LATE EURODOLLARS 8 5\/8 % to 8 1\/2 % one month 8 9\/16 % to 8 7\/16 % two months 8 9\/16 % to 8 7\/16 % three months 8 1\/2 % to 8 3\/8 % four months 8 7\/16 % to 8 5\/16 % five months 8 7\/16 % to 8 5\/16 % six months


( NP ( NP ( NP ( NNP LONDON ) ( JJ INTERBANK ) ( VBN OFFERED ) ( NNS RATES ) ) ( PRN ( NP ( NNP LIBOR ) ) ) ) ( NP ( NP ( NP ( QP ( CD 8 ) ( CD 5\/8 ) ) ( NN % ) ) ( NP-TMP ( CD one ) ( NN month ) ) ) ( NP ( NP ( QP ( CD 8 ) ( CD 9\/16 ) ) ( NN % ) ) ( NP-TMP ( CD three ) ( NNS months ) ) ) ( NP ( NP ( QP ( CD 8 ) ( CD 7\/16 ) ) ( NN % ) ) ( NP-TMP ( CD six ) ( NNS months ) ) ) ( NP ( NP ( QP ( CD 8 ) ( CD 7\/16 ) ) ( NN % ) ) ( NP-TMP ( CD one ) ( NN year ) ) ) ) )

LONDON INTERBANK OFFERED RATES LIBOR 8 5\/8 % one month 8 9\/16 % three months 8 7\/16 % six months 8 7\/16 % one year


( NP ( NP ( DT The ) ( NN average ) ) ( PP ( IN of ) ( NP ( NN interbank ) ( VBN offered ) ( NNS rates ) ) ) ( PP ( IN for ) ( NP ( NN dollar ) ( NNS deposits ) ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NNP London ) ( NN market ) ) ) ( VP ( VBN based ) ( PP-LOC-CLR ( IN on ) ( NP ( NP ( NNS quotations ) ) ( PP-LOC ( IN at ) ( NP ( CD five ) ( JJ major ) ( NNS banks ) ) ) ) ) ) )

The average of interbank offered rates for dollar deposits in the London market based on quotations at five major banks


( NP ( NP ( JJ FOREIGN ) ( JJ PRIME ) ( NNS RATES ) ) ( NP ( NP ( NP ( NNP Canada ) ) ( NP ( CD 13.50 ) ( NN % ) ) ) ( NP ( NP ( NNP Germany ) ) ( NP ( CD 8.50 ) ( NN % ) ) ) ( NP ( NP ( NNP Japan ) ) ( NP ( CD 4.875 ) ( NN % ) ) ) ( NP ( NP ( NNP Switzerland ) ) ( NP ( CD 8.50 ) ( NN % ) ) ) ( NP ( NP ( NNP Britain ) ) ( NP ( CD 15 ) ( NN % ) ) ) ) )

FOREIGN PRIME RATES Canada 13.50 % Germany 8.50 % Japan 4.875 % Switzerland 8.50 % Britain 15 %


( S ( S ( NP-SBJ ( DT These ) ( NN rate ) ( NNS indications ) ) ( VP ( VBP are ) ( RB n't ) ( ADJP-PRD ( RB directly ) ( JJ comparable ) ) ) ) ( S ( NP-SBJ ( NN lending ) ( NNS practices ) ) ( VP ( VBP vary ) ( ADVP-MNR ( RB widely ) ) ( PP ( IN by ) ( NP ( NN location ) ) ) ) ) )

These rate indications are n't directly comparable lending practices vary widely by location


( NP ( NP ( NN TREASURY ) ( NNS BILLS ) ) ( NP ( NP ( NP ( NNS Results ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NAC-TMP ( NNP Monday ) ( NNP October ) ( CD 16 ) ( CD 1989 ) ) ( NN auction ) ) ( PP ( IN of ) ( NP ( NP ( JJ short-term ) ( NNP U.S. ) ( NN government ) ( NNS bills ) ) ( VP ( VBN sold ) ( PP ( IN at ) ( NP ( NP ( DT a ) ( NN discount ) ) ( PP ( IN from ) ( NP ( NN face ) ( NN value ) ) ) ) ) ( PP ( IN in ) ( NP ( NP ( NNS units ) ) ( PP ( IN of ) ( NP ( NP ( CD 10,000 ) ) ( TO to ) ( NP ( QP ( CD 1 ) ( CD million ) ) ) ) ) ) ) ) ) ) ) ) ) ( NP ( NP ( NP ( CD 7.37 ) ( NN % ) ) ( NP-TMP ( CD 13 ) ( NNS weeks ) ) ) ( NP ( NP ( CD 7.42 ) ( NN % ) ) ( NP-TMP ( CD 26 ) ( NNS weeks ) ) ) ) ) )

TREASURY BILLS Results of the Monday October 16 1989 auction of short-term U.S. government bills sold at a discount from face value in units of 10,000 to 1 million 7.37 % 13 weeks 7.42 % 26 weeks


( NP ( NP ( NP ( NNP FEDERAL ) ( NNP HOME ) ( NNP LOAN ) ( NNP MORTGAGE ) ( NNP CORP ) ) ( PRN ( NP ( NNP Freddie ) ( NNP Mac ) ) ) ) ( NP ( NP ( VBN Posted ) ( NNS yields ) ) ( PP-LOC ( IN on ) ( NP ( JJ 30-year ) ( NN mortgage ) ( NNS commitments ) ) ) ( PP ( IN for ) ( NP ( NP ( NN delivery ) ) ( PP-TMP ( IN within ) ( NP ( CD 30 ) ( NNS days ) ) ) ) ) ) )

FEDERAL HOME LOAN MORTGAGE CORP Freddie Mac Posted yields on 30-year mortgage commitments for delivery within 30 days


( NP ( NP ( NP ( CD 9.88 ) ( NN % ) ) ( NP ( JJ standard ) ( JJ conventional ) ( JJ fixed-rate ) ( NNS mortgages ) ) ) ( NP ( NP ( CD 7.875 ) ( NN % ) ) ( NP ( ADJP ( CD 2 ) ( NN % ) ) ( ADJP ( NN rate ) ( VBN capped ) ) ( JJ one-year ) ( JJ adjustable ) ( NN rate ) ( NNS mortgages ) ) ) )

9.88 % standard conventional fixed-rate mortgages 7.875 % 2 % rate capped one-year adjustable rate mortgages


( NP ( NP ( NN Source ) ) ( NP ( NNP Telerate ) ( NNP Systems ) ( NNP Inc ) ) )

Source Telerate Systems Inc


( NP ( NP ( NP ( NNP FEDERAL ) ( NNP NATIONAL ) ( NNP MORTGAGE ) ( NNP ASSOCIATION ) ) ( NP ( NNP Fannie ) ( NNP Mae ) ) ) ( NP ( NP ( NP ( VBN Posted ) ( NNS yields ) ) ( PP-LOC ( IN on ) ( NP ( NP ( CD 30 ) ( NN year ) ( NN mortgage ) ( NNS commitments ) ) ( PP ( IN for ) ( NP ( NP ( NN delivery ) ) ( PP-TMP ( IN within ) ( NP ( CD 30 ) ( NNS days ) ) ) ) ) ( PRN ( VP ( VBN priced ) ( PP-CLR ( IN at ) ( NP ( NN par ) ) ) ) ) ) ) ) ( NP ( NP ( NP ( CD 9.80 ) ( NN % ) ) ( NP ( JJ standard ) ( JJ conventional ) ( JJ fixed-rate ) ( NNS mortgages ) ) ) ( NP ( NP ( CD 8.70 ) ( NN % ) ) ( NP ( CD 6\/2 ) ( ADJP ( NN rate ) ( VBN capped ) ) ( JJ one-year ) ( JJ adjustable ) ( NN rate ) ( NNS mortgages ) ) ) ) ) )

FEDERAL NATIONAL MORTGAGE ASSOCIATION Fannie Mae Posted yields on 30 year mortgage commitments for delivery within 30 days priced at par 9.80 % standard conventional fixed-rate mortgages 8.70 % 6\/2 rate capped one-year adjustable rate mortgages


Source Telerate Systems Inc


( NP ( NP ( NNP MERRILL ) ( NNP LYNCH ) ( NNP READY ) ( NNP ASSETS ) ( NNP TRUST ) ) ( NP ( CD 8.50 ) ( NN % ) ) )

MERRILL LYNCH READY ASSETS TRUST 8.50 %


( NP ( NP ( NP ( JJ Annualized ) ( JJ average ) ( NN rate ) ) ( PP ( IN of ) ( NP ( NN return ) ) ) ( PP-TMP ( IN after ) ( NP ( NNS expenses ) ) ) ( PP-TMP ( IN for ) ( NP ( DT the ) ( JJ past ) ( CD 30 ) ( NNS days ) ) ) ) ( NP ( NP ( RB not ) ( DT a ) ( NN forecast ) ) ( PP ( IN of ) ( NP ( JJ future ) ( NNS returns ) ) ) ) )

Annualized average rate of return after expenses for the past 30 days not a forecast of future returns


( S ( NP-SBJ ( JJ Federal ) ( NNS prosecutors ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP have ) ( VP ( VBN obtained ) ( NP ( DT a ) ( JJ guilty ) ( NN plea ) ) ( PP-CLR ( IN from ) ( NP ( DT another ) ( NN person ) ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NP ( DT the ) ( NN government ) ( POS 's ) ) ( JJ ongoing ) ( NN probe ) ) ( PP ( IN of ) ( NP ( NP ( JJ illegal ) ( NNS payments ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( JJ record ) ( NN industry ) ) ) ) ) ) ) ) ) ) ) ) )

Federal prosecutors said they have obtained a guilty plea from another person in the government 's ongoing probe of illegal payments in the record industry


( S ( NP-SBJ ( NP ( NNP William ) ( NNP Craig ) ) ( NP ( DT an ) ( JJ independent ) ( NN record ) ( NN promoter ) ) ) ( VP ( VBD pleaded ) ( ADJP-PRD ( JJ guilty ) ( PP ( TO to ) ( NP ( NP ( NN payola ) ) ( CC and ) ( NP ( JJ criminal ) ( NN tax ) ( NNS charges ) ) ) ) ) ( PP ( VBG according ) ( PP ( TO to ) ( NP ( NP ( DT a ) ( NN statement ) ) ( VP ( VBN issued ) ( PP ( IN by ) ( NP-LGS ( NP ( NNP Gary ) ( NNP Feess ) ) ( NP ( NP ( DT the ) ( NNP U.S. ) ( NN attorney ) ) ( ADVP-LOC ( RB here ) ) ) ) ) ) ) ) ) ) )

William Craig an independent record promoter pleaded guilty to payola and criminal tax charges according to a statement issued by Gary Feess the U.S. attorney here


( S ( NP-SBJ ( NN Payola ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT the ) ( NN practice ) ) ( PP ( IN of ) ( S-NOM ( VP ( VBG making ) ( NP ( JJ illegal ) ( JJ undisclosed ) ( NNS payments ) ) ( PP-CLR ( TO to ) ( NP ( NN radio ) ( NN station ) ( NNS personnel ) ) ) ( PP ( IN in ) ( NP ( NP ( NN return ) ) ( PP ( IN for ) ( S-NOM ( VP ( VBG getting ) ( S ( NP-SBJ ( DT the ) ( NNS stations ) ) ( VP ( TO to ) ( VP ( VB play ) ( NP ( JJ certain ) ( NNS songs ) ) ( PP-LOC ( IN over ) ( NP ( DT the ) ( NN air ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Payola is the practice of making illegal undisclosed payments to radio station personnel in return for getting the stations to play certain songs over the air


( S ( PP ( IN As ) ( NP ( NP ( NN part ) ) ( PP ( IN of ) ( NP ( NP ( PRP$ his ) ( NN plea ) ( NN agreement ) ) ( PP ( IN with ) ( NP ( DT the ) ( NN government ) ) ) ) ) ) ) ( NP-SBJ ( DT the ) ( JJ 44-year-old ) ( NNP Mr. ) ( NNP Craig ) ) ( VP ( VBZ faces ) ( NP ( NP ( QP ( DT a ) ( NN maximum ) ( IN of ) ( CD three ) ) ( NNS years ) ) ( PP-LOC ( IN in ) ( NP ( NN prison ) ) ) ) ) )

As part of his plea agreement with the government the 44-year-old Mr. Craig faces a maximum of three years in prison


( SINV ( S-TPC-2 ( PP ( IN In ) ( NP ( NN return ) ) ) ( NP-SBJ-1 ( NNP Mr. ) ( NNP Craig ) ) ( VP ( VBD agreed ) ( S ( VP ( TO to ) ( VP ( VB cooperate ) ( PP-LOC-CLR ( IN in ) ( NP ( NP ( DT the ) ( NN government ) ( POS 's ) ) ( VBG continuing ) ( NN payola ) ( NN probe ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( DT a ) ( NN spokeswoman ) ) ( PP ( IN for ) ( NP ( NP ( DT the ) ( NNP U.S. ) ( NN attorney ) ( POS 's ) ) ( NN office ) ) ) ) )

In return Mr. Craig agreed to cooperate in the government 's continuing payola probe says a spokeswoman for the U.S. attorney 's office


( S ( NP-SBJ-1 ( NP ( NNP Mr. ) ( NNP Craig ) ) ( CC and ) ( NP ( CD three ) ( NNS others ) ) ) ( VP ( VBD were ) ( VP ( VBN indicted ) ( NP-TMP ( JJ last ) ( NN year ) ) ( PP ( IN as ) ( NP ( NP ( NN part ) ) ( PP ( IN of ) ( NP ( DT that ) ( NN payola ) ( NN probe ) ) ) ) ) ) ) )

Mr. Craig and three others were indicted last year as part of that payola probe


( S ( S ( NP-SBJ ( CD Two ) ( JJ other ) ( NNS defendants ) ) ( ADVP-TMP ( RB previously ) ) ( VP ( VBD pleaded ) ( ADJP-PRD ( JJ guilty ) ) ) ) ( CC and ) ( S ( NP-SBJ-1 ( NP ( NNS charges ) ) ( PP ( IN against ) ( NP ( DT the ) ( JJ third ) ) ) ) ( VP ( VBD were ) ( VP ( VBN dropped ) ) ) ) )

Two other defendants previously pleaded guilty and charges against the third were dropped


( S ( NP-SBJ ( NNP Apogee ) ( NNP Robotics ) ( NNP Inc. ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP$ its ) ( NN board ) ) ( VP ( VBD extended ) ( PP-TMP-CLR ( IN until ) ( NP ( NNP Feb. ) ( CD 1 ) ) ) ( NP ( NP ( DT the ) ( NN exercise ) ( NN period ) ) ( PP ( IN of ) ( NP ( NP ( NP ( NNP Apogee ) ( POS 's ) ) ( JJ existing ) ( NN stock ) ( NN purchase ) ( NNS warrants ) ) ( ADJP ( JJ outstanding ) ) ) ) ) ) ) ) ) )

Apogee Robotics Inc. said its board extended until Feb. 1 the exercise period of Apogee 's existing stock purchase warrants outstanding


( S ( NP-SBJ ( DT The ) ( NN expiration ) ( NN date ) ) ( VP ( VBD had ) ( VP ( VBN been ) ( NP-PRD ( NNP Nov. ) ( CD 3 ) ) ) ) )

The expiration date had been Nov. 3


( S ( NP-SBJ ( NP ( DT Each ) ) ( PP ( IN of ) ( NP ( DT the ) ( CD 1,075,000 ) ( NNS warrants ) ) ) ) ( VP ( VBP entitle ) ( S ( NP-SBJ ( DT the ) ( NNS holders ) ) ( VP ( TO to ) ( VP ( VB purchase ) ( NP ( NP ( CD one ) ( NN share ) ) ( PP ( IN of ) ( NP ( NNP Apogee ) ( JJ common ) ( NN stock ) ) ) ) ( PP-CLR ( IN for ) ( NP ( CD 2.25 ) ) ) ) ) ) ) )

Each of the 1,075,000 warrants entitle the holders to purchase one share of Apogee common stock for 2.25


( S ( NP-SBJ-1 ( NNP Apogee ) ) ( VP ( VBD was ) ( VP ( VBN quoted ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( JJ over-the-counter ) ( NN market ) ) ) ( NP-TMP ( NN yesterday ) ) ( PP-CLR ( IN at ) ( NP ( NP ( CD 2 ) ) ( VP ( NN bid ) ) ) ) ) ) )

Apogee was quoted in the over-the-counter market yesterday at 2 bid


( S ( NP-SBJ ( NP ( NP ( DT The ) ( NN stock ) ( NN market ) ( POS 's ) ) ( JJ dizzying ) ( NNS gyrations ) ) ( PP-TMP ( IN during ) ( NP ( DT the ) ( JJ past ) ( JJ few ) ( NNS days ) ) ) ) ( VP ( VBP have ) ( VP ( VBN made ) ( S ( NP-SBJ ( NP ( DT a ) ( NN lot ) ) ( PP ( IN of ) ( NP ( JJ individual ) ( NNS investors ) ) ) ) ( VP ( VB wish ) ( SBAR ( S ( NP-SBJ ( PRP they ) ) ( VP ( MD could ) ( VP ( VB buy ) ( NP ( NP ( DT some ) ( NN sort ) ) ( PP ( IN of ) ( NP ( NN insurance ) ) ) ) ) ) ) ) ) ) ) ) )

The stock market 's dizzying gyrations during the past few days have made a lot of individual investors wish they could buy some sort of insurance


( S ( PP ( IN After ) ( NP ( DT all ) ) ) ( NP-SBJ ( PRP they ) ) ( VP ( MD wo ) ( RB n't ) ( ADVP-TMP ( RB soon ) ) ( VP ( VB forget ) ( NP ( NP ( DT the ) ( NN stock ) ( NNS bargains ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBD became ) ( ADJP-PRD ( JJ available ) ) ( PP-TMP ( IN after ) ( NP ( DT the ) ( NNP October ) ( CD 1987 ) ( NN crash ) ) ) ) ) ) ) ) ) )

After all they wo n't soon forget the stock bargains that became available after the October 1987 crash


( S ( CC But ) ( SBAR-ADV ( IN while ) ( S ( NP-SBJ-2 ( PRP they ) ) ( VP ( VBP want ) ( S ( VP ( TO to ) ( VP ( VB be ) ( PP-PRD ( IN on ) ( NP ( NP ( DT the ) ( NN alert ) ) ( PP ( IN for ) ( NP ( JJ similar ) ( NN buying ) ( NNS opportunities ) ) ) ) ) ( ADVP-TMP ( RB now ) ) ) ) ) ) ) ) ( NP-SBJ-3 ( PRP they ) ) ( VP ( VBP 're ) ( ADJP-PRD ( JJ afraid ) ( PP ( IN of ) ( S-NOM ( VP ( VBG being ) ( VP ( VBN hammered ) ( PP ( IN by ) ( NP-LGS ( DT another ) ( JJ terrifying ) ( NN plunge ) ) ) ) ) ) ) ) ) )

But while they want to be on the alert for similar buying opportunities now they 're afraid of being hammered by another terrifying plunge


( S ( NP-SBJ ( DT The ) ( NN solution ) ) ( PP ( ADVP ( IN at ) ( JJS least ) ) ( IN for ) ( NP ( DT some ) ( NNS investors ) ) ) ( VP ( MD may ) ( VP ( VB be ) ( NP-PRD ( NP ( DT a ) ( NN hedging ) ( NN technique ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBZ 's ) ( ADJP-PRD ( RB well ) ( VBN known ) ( PP ( TO to ) ( NP ( NP ( NNS players ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NNS stock-options ) ( NN market ) ) ) ) ) ) ) ) ) ) ) ) )

The solution at least for some investors may be a hedging technique that 's well known to players in the stock-options market


( S ( S-ADV ( VP ( VBN Called ) ( S ( NP-PRD ( DT a ) ( JJ married ) ( NN put ) ) ) ) ) ( NP-SBJ-2 ( DT the ) ( NN technique ) ) ( VP ( VBZ is ) ( VP ( VBN carried ) ( PRT ( RP out ) ) ( PP-MNR ( IN by ) ( S-NOM ( VP ( VP ( VBG purchasing ) ( NP ( DT a ) ( NN stock ) ) ) ( CC and ) ( VP ( ADVP-TMP ( RB simultaneously ) ) ( VBG buying ) ( NP ( NP ( DT a ) ( NN put ) ( NN option ) ) ( PP-LOC ( IN on ) ( NP ( DT that ) ( NN stock ) ) ) ) ) ) ) ) ) ) )

Called a married put the technique is carried out by purchasing a stock and simultaneously buying a put option on that stock


( SINV ( S-TPC-1 ( NP-SBJ ( PRP It ) ) ( VP ( POS 's ) ( PP-PRD ( IN like ) ( NP ( NN fire ) ( NN insurance ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP Harrison ) ( NNP Roth ) ) ( NP ( NP ( DT the ) ( JJ senior ) ( NNS options ) ( NN strategist ) ) ( PP-LOC ( IN at ) ( NP ( NNP Cowen ) ( CC & ) ( NNP Co ) ) ) ) ) )

It 's like fire insurance says Harrison Roth the senior options strategist at Cowen & Co


( S ( SBAR-PRP ( IN Because ) ( S ( NP-SBJ ( DT a ) ( NN put ) ( NN option ) ) ( VP ( VBZ gives ) ( NP ( PRP$ its ) ( NN owner ) ) ( NP ( NP ( DT the ) ( NN right ) ) ( CC but ) ( NP ( RB not ) ( DT the ) ( NN obligation ) ) ( S-1 ( VP ( TO to ) ( VP ( VB sell ) ( NP ( NP ( DT a ) ( JJ fixed ) ( NN number ) ) ( PP ( IN of ) ( NP ( NP ( NNS shares ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN stock ) ) ) ) ) ) ( PP ( IN at ) ( NP ( DT a ) ( JJ stated ) ( NN price ) ) ) ( PP-TMP ( IN on ) ( CC or ) ( IN before ) ( NP ( NP ( DT the ) ( NN option ) ( POS 's ) ) ( NN expiration ) ( NN date ) ) ) ) ) ) ) ) ) ) ( NP-SBJ-2 ( DT the ) ( NN investor ) ) ( VP ( VBZ is ) ( VP ( VBN protected ) ( PP ( IN against ) ( NP ( NP ( DT a ) ( JJ sudden ) ( NN drop ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( NN stock ) ( POS 's ) ) ( NN price ) ) ) ) ) ) ) )

Because a put option gives its owner the right but not the obligation to sell a fixed number of shares of the stock at a stated price on or before the option 's expiration date the investor is protected against a sudden drop in the stock 's price


( S ( CC But ) ( NP-SBJ ( JJS most ) ( NN investment ) ( NNS advisers ) ) ( VP ( VBP do ) ( RB n't ) ( VP ( VB recommend ) ( S ( VP ( VBG using ) ( NP ( JJ married ) ( NNS puts ) ) ( NP-TMP ( PDT all ) ( DT the ) ( NN time ) ) ) ) ) ) )

But most investment advisers do n't recommend using married puts all the time


( S ( NP-SBJ ( DT That ) ) ( VP ( VBZ 's ) ( SBAR-PRP-PRD ( IN because ) ( S ( NP-SBJ ( NP ( DT the ) ( NN cost ) ) ( PP ( IN of ) ( S-NOM ( VP ( VBG buying ) ( NP ( NN put ) ( NNS options ) ) ) ) ) ) ( VP ( VBZ eats ) ( PP-DIR ( IN into ) ( NP ( NP ( DT an ) ( NN investor ) ( POS 's ) ) ( NN profit ) ) ) ( SBAR-TMP ( WHADVP-1 ( WRB when ) ) ( S ( NP-SBJ ( NN stock ) ( NNS prices ) ) ( VP ( VBP rise ) ) ) ) ) ) ) ) )

That 's because the cost of buying put options eats into an investor 's profit when stock prices rise


( SINV ( S-TPC-2 ( NP-SBJ ( DT This ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT the ) ( NN type ) ) ( PP ( IN of ) ( NP ( NN fire ) ( NN insurance ) ) ) ( SBAR ( S ( NP-SBJ ( PRP you ) ) ( VP ( ADVP ( RB only ) ) ( VBP buy ) ( SBAR-TMP ( WHADVP-3 ( WRB when ) ) ( S ( NP-SBJ ( DT the ) ( JJ nearby ) ( NNS woods ) ) ( VP ( VBP are ) ( PP-PRD ( IN on ) ( NP ( NN fire ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Roth ) ) )

This is the type of fire insurance you only buy when the nearby woods are on fire says Mr. Roth


( S ( S ( NP-SBJ ( PRP You ) ) ( ADVP-TMP ( RB always ) ) ( VP ( VB want ) ( S ( NP-SBJ-2 ( PRP$ your ) ( NN house ) ) ( VP ( VBN insured ) ) ) ) ) ( CC but ) ( S ( NP-SBJ ( PRP you ) ) ( VP ( VBP do ) ( RB n't ) ( ADVP-TMP ( RB always ) ) ( VP ( VB feel ) ( NP-PRD ( NP ( DT the ) ( NN need ) ) ( SBAR ( IN for ) ( S ( NP-SBJ-1 ( PRP$ your ) ( NNS investments ) ) ( VP ( TO to ) ( VP ( VB be ) ( VP ( VBN insured ) ) ) ) ) ) ) ) ) ) )

You always want your house insured but you do n't always feel the need for your investments to be insured


( S ( PP ( IN In ) ( NP ( NP ( NN addition ) ) ( PP ( TO to ) ( S-NOM ( VP ( VBG hedging ) ( NP ( JJ new ) ( NN stock ) ( NNS purchases ) ) ) ) ) ) ) ( NP-SBJ-2 ( DT the ) ( JJ married-put ) ( NN technique ) ) ( VP ( MD can ) ( VP ( VB be ) ( VP ( VBN used ) ( S-CLR ( VP ( TO to ) ( VP ( VB protect ) ( NP ( NP ( NNS stocks ) ) ( SBAR ( WHNP-1 ( IN that ) ) ( S ( NP-SBJ ( DT an ) ( NN investor ) ) ( ADVP-TMP ( RB already ) ) ( VP ( VBZ owns ) ) ) ) ) ) ) ) ) ) ) )

In addition to hedging new stock purchases the married-put technique can be used to protect stocks that an investor already owns


( S ( PP-LOC ( IN In ) ( NP ( DT either ) ( NN case ) ) ) ( NP-SBJ ( DT the ) ( NN investor ) ) ( VP ( VBZ faces ) ( NP ( CD three ) ( JJ possible ) ( NNS outcomes ) ) ) )

In either case the investor faces three possible outcomes


( S ( SBAR-ADV ( IN If ) ( S ( NP-SBJ ( DT the ) ( NN stock ) ) ( VP ( VBZ goes ) ( ADVP-DIR ( RB up ) ( PP ( IN in ) ( NP ( NN price ) ) ) ) ( PP-TMP ( IN between ) ( NP ( NP ( RB now ) ) ( CC and ) ( NP ( NP ( DT the ) ( NN put ) ( POS 's ) ) ( NN expiration ) ( NN date ) ) ) ) ) ) ) ( NP-SBJ-1 ( DT the ) ( NN put ) ) ( VP ( MD will ) ( ADVP ( RB probably ) ) ( VP ( VB expire ) ( S-CLR ( ADJP-PRD ( JJ worthless ) ) ) ) ) )

If the stock goes up in price between now and the put 's expiration date the put will probably expire worthless


( S ( S ( NP-SBJ ( DT The ) ( NN investor ) ) ( VP ( MD will ) ( VP ( VB be ) ( ADVP-PRD ( IN out ) ( NP ( NP ( DT the ) ( NN cost ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN put ) ) ) ( SBAR ( WHNP-2 ( WDT which ) ) ( S ( VP ( VBZ is ) ( VP ( VBN called ) ( S ( NP-PRD ( DT the ) ( NN premium ) ) ) ) ) ) ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( DT this ) ( NN loss ) ) ( VP ( MD will ) ( VP ( VB reduce ) ( NP ( DT the ) ( NN stock-market ) ( NN profit ) ) ) ) ) )

The investor will be out the cost of the put which is called the premium and this loss will reduce the stock-market profit


( S ( SBAR-ADV ( IN If ) ( S ( NP-SBJ ( DT the ) ( NN stock ) ) ( VP ( VBZ stays ) ( PP-LOC-CLR ( IN at ) ( NP ( DT the ) ( JJ same ) ( NN price ) ) ) ( PP-TMP ( IN between ) ( NP ( NP ( RB now ) ) ( CC and ) ( NP ( NP ( DT the ) ( NN put ) ( POS 's ) ) ( NN expiration ) ( NN date ) ) ) ) ) ) ) ( NP-SBJ-1 ( NP ( DT the ) ( NN investor ) ( POS 's ) ) ( NN loss ) ) ( VP ( MD will ) ( VP ( VB be ) ( VP ( VBN limited ) ( PP-CLR ( TO to ) ( NP ( NP ( DT the ) ( NN cost ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN put ) ) ) ( PP ( CC less ) ( NP ( NP ( DT any ) ( NN amount ) ) ( VP ( VBN realized ) ( PP-CLR ( IN from ) ( NP ( NP ( DT a ) ( NN closing ) ( NN sale ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN put ) ) ) ) ) ) ) ) ) ) ) ) ) )

If the stock stays at the same price between now and the put 's expiration date the investor 's loss will be limited to the cost of the put less any amount realized from a closing sale of the put


( S ( NP-SBJ ( DT The ) ( JJ worst-case ) ( NN scenario ) ) ( VP ( MD would ) ( VP ( VB be ) ( SBAR-PRD ( IN if ) ( S ( NP-SBJ-1 ( DT the ) ( NN put ) ) ( VP ( VBZ expires ) ( S-CLR ( ADJP-PRD ( JJ worthless ) ) ) ) ) ) ) ) )

The worst-case scenario would be if the put expires worthless


( S ( SBAR-ADV ( IN If ) ( S ( NP-SBJ ( NP ( DT the ) ( NN price ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN stock ) ) ) ) ( VP ( VBZ declines ) ) ) ) ( NP-SBJ ( DT the ) ( NN put ) ) ( VP ( MD will ) ( VP ( VB increase ) ( PP ( IN in ) ( NP ( NN value ) ) ) ) ) )

If the price of the stock declines the put will increase in value


( S ( SBAR-TMP ( IN Once ) ( S ( NP-SBJ ( DT the ) ( NN stock ) ( NN price ) ) ( VP ( VBZ is ) ( ADJP-PRD ( ADJP ( JJR less ) ) ( PP ( IN than ) ( NP ( NP ( NP ( DT the ) ( NN exercise ) ( NN price ) ) ( CC or ) ( NP ( NN strike ) ( NN price ) ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN put ) ) ) ) ) ) ) ) ) ( NP-SBJ ( DT the ) ( NN gain ) ) ( VP ( MD will ) ( VP ( VB match ) ( NP ( NP ( DT the ) ( NN loss ) ) ( PP-LOC ( IN on ) ( NP ( DT the ) ( NN stock ) ) ) ) ( NP-ADV ( NP ( NN dollar ) ) ( PP ( IN for ) ( NP ( NN dollar ) ) ) ) ) ) )

Once the stock price is less than the exercise price or strike price of the put the gain will match the loss on the stock dollar for dollar


( S ( NP-SBJ ( DT The ) ( NN put ) ) ( VP ( VBZ establishes ) ( NP ( NP ( DT a ) ( NN minimum ) ( NN selling ) ( NN price ) ) ( PP ( IN for ) ( NP ( DT the ) ( NN stock ) ) ) ( PP-TMP ( IN during ) ( NP ( PRP$ its ) ( NN life ) ) ) ) ) )

The put establishes a minimum selling price for the stock during its life


( S ( SBAR-TMP ( WHADVP-1 ( WRB When ) ) ( S ( NP-SBJ ( DT a ) ( NN stock ) ) ( VP ( VBZ falls ) ( PP-DIR ( IN below ) ( NP ( NP ( DT the ) ( NN put ) ( POS 's ) ) ( NN strike ) ( NN price ) ) ) ) ) ) ( NP-SBJ ( DT the ) ( NN investor ) ) ( VP ( VP ( ADVP ( RB simply ) ) ( VBZ sells ) ( NP ( DT the ) ( NN stock ) ) ( PP ( IN at ) ( NP ( DT a ) ( NN loss ) ) ) ) ( CC and ) ( VP ( ADVP-TMP ( RB simultaneously ) ) ( VBZ sells ) ( NP ( DT the ) ( NN put ) ) ( PP ( IN at ) ( NP ( DT a ) ( NN profit ) ) ) ) ) )

When a stock falls below the put 's strike price the investor simply sells the stock at a loss and simultaneously sells the put at a profit


( S ( CC Or ) ( NP-SBJ-2 ( DT the ) ( NN investor ) ) ( VP ( MD can ) ( VP ( VB exercise ) ( NP ( DT the ) ( NN put ) ) ( PP-MNR ( IN by ) ( S-NOM ( VP ( VBG tendering ) ( NP ( DT the ) ( NN stock ) ) ( PP-DTV ( TO to ) ( NP ( PRP$ his ) ( CC or ) ( PRP$ her ) ( NN broker ) ) ) ( PP ( IN in ) ( NP ( NP ( NN return ) ) ( PP ( IN for ) ( NP ( NP ( NN payment ) ) ( PP ( IN from ) ( NP ( NP ( DT another ) ( NN investor ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBZ has ) ( VP ( VBN sold ) ( NP ( NP ( DT a ) ( NN put ) ) ( PP-LOC ( IN on ) ( NP ( DT the ) ( JJ same ) ( NN stock ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Or the investor can exercise the put by tendering the stock to his or her broker in return for payment from another investor who has sold a put on the same stock


( S ( NP-SBJ ( NNS Brokers ) ) ( VP ( VBP handle ) ( NP ( JJ such ) ( NNS transactions ) ) ( PP ( IN through ) ( NP ( NP ( DT the ) ( NNP Options ) ( NNP Clearing ) ( NNP Corp. ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ guarantees ) ( NP ( DT all ) ( NN option ) ( NNS trades ) ) ) ) ) ) ) ) )

Brokers handle such transactions through the Options Clearing Corp. which guarantees all option trades


( S ( NP-SBJ ( DT The ) ( JJ accompanying ) ( NN table ) ) ( VP ( VBZ shows ) ( SBAR ( WHADVP-1 ( WRB how ) ) ( S ( NP-SBJ ( DT this ) ( NN strategy ) ) ( VP ( MD would ) ( VP ( VB work ) ( PP ( IN for ) ( NP ( CD three ) ( NNS stocks ) ) ) ) ) ) ) ) )

The accompanying table shows how this strategy would work for three stocks


( S ( SBAR-ADV ( IN Though ) ( S ( VP ( RB not ) ( VBN reflected ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN table ) ) ) ) ) ) ( NP-SBJ ( DT an ) ( NN investor ) ) ( VP ( MD should ) ( VP ( VB know ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( NP ( DT the ) ( NN cost ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN option ) ( NN insurance ) ) ) ) ( VP ( MD can ) ( VP ( VB be ) ( VP ( ADVP ( RB partially ) ) ( VBN offset ) ( PP ( IN by ) ( NP-LGS ( NP ( DT any ) ( NNS dividends ) ) ( SBAR ( WHNP-2 ( WDT that ) ) ( S ( NP-SBJ ( DT the ) ( NN stock ) ) ( VP ( VBZ pays ) ) ) ) ) ) ) ) ) ) ) ) ) )

Though not reflected in the table an investor should know that the cost of the option insurance can be partially offset by any dividends that the stock pays


( S ( PP ( IN For ) ( NP ( NN example ) ) ) ( NP-SBJ ( NNP Tenneco ) ( NNP Inc. ) ) ( VP ( VBZ pays ) ( NP ( NP ( DT a ) ( JJ quarterly ) ( NN dividend ) ) ( PP ( IN of ) ( NP ( CD 76 ) ( NNS cents ) ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( MD would ) ( VP ( VP ( VB be ) ( VP ( VBN received ) ( SBAR-TMP ( IN before ) ( S ( NP-SBJ ( DT the ) ( NNP February ) ( NN option ) ) ( VP ( VBZ expires ) ) ) ) ) ) ( CC and ) ( ADVP ( RB thus ) ) ( VP ( VB reduce ) ( NP ( NP ( DT the ) ( NN cost ) ) ( PP ( IN of ) ( S-NOM ( VP ( VBG using ) ( NP ( DT the ) ( NN technique ) ) ) ) ) ) ( PP-EXT ( IN by ) ( NP ( DT that ) ( NN amount ) ) ) ) ) ) ) ) ) ) )

For example Tenneco Inc. pays a quarterly dividend of 76 cents which would be received before the February option expires and thus reduce the cost of using the technique by that amount


( S ( PP-LOC ( IN In ) ( NP ( DT this ) ( NN case ) ) ) ( NP-SBJ ( NP ( DT the ) ( NN investor ) ( POS 's ) ) ( NN risk ) ) ( VP ( MD would ) ( RB n't ) ( VP ( VB exceed ) ( NP ( NP ( CD 3.6 ) ( NN % ) ) ( PP ( IN of ) ( NP ( DT the ) ( JJ total ) ( NN investment ) ) ) ) ) ) )

In this case the investor 's risk would n't exceed 3.6 % of the total investment