Richard L. Hutcheson and Deloris A. Hutcheson - Page 4

                                                 - 4 -                                                    
            WalMart     Charge or          SEC Fees           Handling Gross Price                        
            Shares      Mark-up                                                                           
                                                                                                          
            69,200      $8,515.06          $69.20             $2.35       $2,076,000                      
            10,500      $1,292.35          $10.59                         $  317,625                      
            20,300      $2,497.92          $20.39                         $  611,537                      
            Merrill Lynch sold 69,200 shares at 30; 10,500 at 30-1/4; and                                 
            20,300 at 30-1/8.  Merrill Lynch used the proceeds from the                                   
            January 3, 1989, sales to pay off most of petitioners' margin                                 
            indebtedness.  A sale of 3,400 shares of Walmart (sales were                                  
            always made in multiples of 100) at 30-1/4 (the highest price                                 
            received for WalMart shares on January 3) would have grossed                                  
            $102,850 and netted approximately $102,426 to reduce petitioners'                             
            margin debt.                                                                                  
                  During subsequent attempts to resolve the dispute, Merrill                              
            Lynch, in order to accommodate petitioner, offered to                                         
            "repurchase" WalMart stock "in excess of 10,500" (as stipulated                               
            by the parties), and offered a refund of the commission on the                                
            January 3 sales and to waive the commission on the "repurchase".                              
            Petitioner rejected the offer on about January 17, 1989, in a                                 
            letter to Merrill Lynch's Little Rock, Arkansas, manager.                                     
            Petitioner closed account no. 567-96135 on or about March 15,                                 
            1989, by having Merrill Lynch retransfer the remaining WalMart                                
            shares in the account.                                                                        
                  By December 28, 1989, the price of WalMart had risen to 44-                             
            1/2.  On December 28, 1989, petitioner and Merrill Lynch agreed                               





Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  Next

Last modified: May 25, 2011