|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 did Grant continue to predict?
2. What is it called when one investor holds stock for another investor and thus conceals the identity of the owner?
3. Why did Atlantic Capital have to stop selling Wedvick's contracts?
4. What was one of the most important factors in the leveraged buyout deals?
5. In what was Atlantic Capital involved?
Short Essay Questions
1. What was James Grant's position on where things would eventually lead in the credit cycle?
2. Tell something of the anticipation associated with SEC and FBI investigations into Drexel and Milken.
3. How widespread was Milken's competition by the fall of 1986?
4. How did Drexel achieve god-like status with investors?
5. Before Revlon, what had been Perelman's biggest success?
6. What were some of the detractors of LTOs saying about the practice in the 1980s?
7. How was fear affecting Drexel during the investigations?
8. Why did Sanford Sigoloff switch from Salomon Brothers to Drexel when he was acquiring Wickes?
9. How did Milken disagree with the idea that liquidity was scarce?
10. State some of the details about Milken's being investigated for insider trading.
Write an essay for ONE of the following topics:
Essay Topic 1
Write an essay about how it is possible for one to achieve dreams by hard work and study. Use Michael Milken as an example of coming up from not being able to get a job with a major Wall Street investment firm to having his picture on the cover of financial magazines. Do not include his downfall as that is the subject for another essay.
Essay Topic 2
Write an essay on how power corrupts. Using Milken as an example, discuss how easy it is for one who gains great power to think that the rules do not apply to him/her. In the essay discuss how flaunting the rules for a good purpose does not make it right.
Essay Topic 3
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.
This section contains 998 words
(approx. 4 pages at 300 words per page)