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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
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