|Name: _________________________||Period: ___________________|
This quiz consists of 5 multiple choice and 5 short answer questions through Part 1: Chapter 4, Merge with Mike.
Multiple Choice Questions
1. When he heard on the radio about a change in options to buy stocks, what did Milken do that saved Drexel Burnham Lambert?
(a) cabeled DBL to warn them
(b) stopped in St. Louis and started buying
(c) turned around and went back
(d) made calls from pay phones
2. Who was Dr. Feelgood of Drexel?
(a) Lowell Milken
(b) Tubby Burnham
(c) Michael Milken
(d) Fred Joseph
3. What was Milken's biggest contribution to Drexel in the early years?
(a) a recruiting system to get the brightest Ivy League graduates
(b) engineering the change over to computers
(c) a study of the securities delivery system which cut the delivery time from five days to one
(d) an entry into the social circles of high-yield bond traders
4. Why was Milken so interested in low grade bonds?
(a) he liked to gamble big time
(b) they were the only ones he really understood
(c) that was all he could afford
(d) equity offerings were not an option for the Drexel Burnham market
5. Who moved to Los Angeles with Milken?
(a) most of his friends
(b) several Wall Street firms
(c) most of his relatives
(d) most of his staff
Short Answer Questions
1. What became the name of bonds that come into being during highly leveraged takeovers?
2. What influenced Milken to become interested in low grade bond portfolios?
3. To troubled businesses, what was Drexel's unregistered exchange offer?
4. Why did Drexel have to separate from J. P. Morgan?
5. Where did Milken and his wife buy a house?
This section contains 328 words
(approx. 2 pages at 300 words per page)