|Name: _________________________||Period: ___________________|
This test consists of 5 short answer questions, 10 short essay questions, and 1 (of 3) essay topics.
Short Answer Questions
1. What was Milken's biggest contribution to Drexel in the early years?
2. What is sometimes the result of an LBO?
3. Where did most of the money come from when Icahn actually acquired ACF, a railroad car leasing company?
4. Where did Milken want to move his bond operation unit in 1978?
5. What did the Milken Group do in 1983?
Short Essay Questions
1. How did Milken help Drexel on his drive from New York to California?
2. Why did Thomas Spiegel come under investigation by the FHLBB?
3. How did Marshall Field attempt to fight Carl Icahn?
4. Who was Carl Icahn and how did he get into the hostile takeover business?
5. Describe how Michael Milken is introduced in the book.
6. Explain Milken's relationship with his staff.
7. Explain some of Drexel's problem clients in the early 1980s.
8. Explain why Milken wanted to move his operation to Los Angeles.
9. How did they get around the SEC bond registration rules?
10. How did Milken begin building his fortune?
Write an essay for ONE of the following topics:
Essay Topic 1
Do some research and write a paper on how bonds are rated by Standard and Poors. Explain how the ratings reflect the level of risk involved. Give specific examples of high-risk and low-risk bonds.
Essay Topic 2
Write a paper on stock parking. Milken and Drexel were investigated for this practice, but they were not the only ones. Define stock parking and research other instances of charges brought against investor and investment firms for doing this. Be sure to include why a person wanting to gain control of a company might want to use this illegal method.
Essay Topic 3
Write an essay on the value of competition. Using the meteoric rise of Drexel in the junk bond business, note how the competition attempted to imitate its success. In your paper, discuss how competition leads to greater achievements and better products.
This section contains 1,129 words
(approx. 4 pages at 300 words per page)