- 4 - knowledge, and by using the sources of supply that were developed therefrom. Unlike its competitors, petitioner derived economies by copying the trading operations of some of the large securities firms on Wall Street in New York, New York. Petitioner’s traders worked out of a trading pit where purchasing and selling transactions were brokered in a matter of seconds. Petitioner’s traders did not have a set markup on parts sold; instead, they worked off market prices; i.e., petitioner profited on the spread between the purchase and selling price when it was able to match a customer's need with the integrated circuits that petitioner could locate. Petitioner carried minimal inventory, had a high inventory turnover rate, and had no written agreements with manufacturers. Petitioner generally did not order goods for which it did not have a buyer, and in the rare cases that it did, it always had the option of selling the goods before they were delivered or canceling the order. 2. Petitioner's Owners The Officers were longtime friends who met in grade school. They organized Components in October 1979 by contributing a total of $2,000 in cash in return for all of its stock. Mr. Laviano received 75 percent of the stock, and Mr. Woll received the other 25 percent. The business of Components was headquartered in the basement of the home of Mr. Laviano's parents. The Officers usedPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011