The interdependence of the optimal investment program and capital prices, when capital and other markets are imperfect, has been one of the least tractable problems in capital budgeting. The nature of the problem is described in Amey [1]. Suggested solutions to the problem may be found in Baumol and Quandt [2], Carleton [3], Hirshleifer [4], Lusztig and Schwab [7], and Weingartner [9]. The purpose of this note is to extend the mathematical results reported by Lusztig and Schwab (L & S) and draw implications that will shed light on the controversy.

Recent diplomatic historians have explained much of American expansionism at the end of the nineteenth century as the product of domestic industrial overcapacity and the resulting need to seek foreign markets. Evidence of business behavior, however, indicates that overseas expansion and exports were not a very important avenue through which U.S. businessmen sought to control prices and output. Indeed, in most of the industries which did engage in significant foreign activities, their expansion was usually the result of genuine competitive advantages rather than a sign of economic ill health.

Recent theoretical and empirical work in portfolio theory has exhibited a natural evolution from the two-moment EV model popularized by Markowitz through the higher moment models to selection on the basis of the entire probability function. This latter approach, referred to as the Stochastic Dominance (SD) approach to portfolio selection, has been shown to be theoretically superior to all of the “moment methods” and has been the focus of an increasing volume of empirical work.

The trading of security options is one of the fastest growing and most dynamic areas of investment concern. When the Chicago Board of Trade's proposal to develop an exchange for trading option contracts is implemented, security option trading will become an even more important aspect of the investment world.

The current assets and current liabilities of a firm are the stock reflections of closely interrelated operational and financial cash flows. The net effect of these combined flows must be recognized in searching for the optimal credit, inventory, or short-term borrowing policies. Yet, the vast majority of models for short-term investment and borrowing decisions do not allow for the interrelationships of this system.

Recent research focused on the market for first public offerings of common stock has indicated that investors who purchase new issues at the offering price will quickly achieve relatively large systematic profits. This is attributable to either the inability or the reluctance of investment bankers to reoffer the shares in which they deal at market-clearing prices. This paper examines factors that influence investment bankers in their pricing decisions and subsequently determine the short-run performance of new issues.

While events of major significance for banking occurred on the national scene in the populist and progressive years, noteworthy changes also materialized on the state level. Like their brethren elsewhere in the country, California bankers struggled through their organizations with such problems as how to achieve “sound banking,” how to influence the political process in their state, and how to give banking more of the trappings of professionalism.

During the first half of the 1960s the U.S. Treasury conducted eleven advanced refundings. Publicly held Treasury securities aggregating $188,631 million were made eligible for exchange and $62,642 million were exchanged — an aggregate exchange ratio of 33 percent.