Beverly Gordon - Page 11

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               you a dealer in securities?                                            
                    A   No.                                                           
          Ms. Gordon also points to the following testimony elicited by Ms.           
          Gordon, through her counsel, on Ms. Gordon's direct examination             
          of Mr. Gordon:                                                              
                    Q   * * *                                                         
                    For what purpose were you holding the stock that                  
               you -- that you had in your account?                                   
                    A   Hedge.                                                        
          The only other question relating to Mr. Gordon's hedging alle-              
          gations that Ms. Gordon asked Mr. Gordon was the following:                 
                    Q   * * * You indicated that you were not a                       
               dealer in securities.  What did you mean by that?                      
                       *     *     *     *     *     *     *                          
                    A   I would classify a dealer in securities as a                  
               specialist on the New York Stock Exchange who makes a                  
               market in the underlying stock of the options I traded.                
               Based on the foregoing testimony, we were able to find in              
          our Opinion that Mr. Gordon was not a specialist on the New York            
          Stock Exchange who made a market in the stocks underlying the               
          options that he traded.  However, we were unable to find, based             
          on Mr. Gordon's conclusory testimony quoted above that he held              
          certain stock in an unidentified account8 as a hedge and other              

          8  The only documentation in the record of any "account" main-              
          tained by Mr. Gordon during 1986 consisted of the following                 
          statements issued to him by Wagner Stott Clearing Corp. (Wagner             
          Stott statements):  Wagner Stott statements for the periods Mar.            

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