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In Australia and Sweden, any driver stopped can be tested for alcohol (Homel, 1988). In Britain, drivers can be tested under three conditions: when in a crash, when committing a traf c offense, or when an of cer suspects drinking. Ross (1973), in a detailed study of the British Road Safety Act, indicated that this procedure was highly effective in reducing

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positioning. This stock s price will often trade at a discount if it s valued in the context of a group-multiple that s too low for the company s shifting business model, market potential, and/or prospects. A company that doesn t specifically target the appropriate investors. By not finding investors who buy similar stocks and have objectives that are in line with those of the company, management might be missing the opportunity to corral dozens of large, long-term buyers. They are also wasting time and money in the process. IR that allows management to establish optimistic guidance or no guidance at all. Either of these scenarios increases the risk that management will regularly miss estimates over time, the ultimate bogeys by which every company is judged. For example, in the too optimistic category, a 20 percent earnings grower that guides investors to expect 25 percent growth will rarely get the same multiple that a 20 percent grower will get if it prompts investors to expect 15 percent. IR s job is to balance the fine line between optimism and realism because when that line blurs, valuation suffers. To that point, aggressive guidance that normally leads to a higher short-term stock price can be very counterproductive. It often forces an analyst to downgrade the rating, attracts short sellers, and increases the risk of volatility, all of which can be distracting and a massive time drain to management.





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Mid-Cap US Stocks Some investment funds include midcap stocks as an additional asset category There are multiple de nitions of mid-cap stocks, but basically they are ones larger than those in the Russell 2000 index, perhaps as large as $10 to $15 billion in market cap They do have somewhat different characteristics from large or small stocks, and they re not quite as volatile as small stocks But, relative to large stocks, they don t provide as much diversi cation bene t as small stocks Real Estate Investment Trusts (REITs) REITs are a form of common stock They trade on stock exchanges but, unlike regular corporations, they pay no income tax They pass their income tax liability on to their shareholders, which is just ne for a taxfree investment fund.

When you ve finished with the Wizard, you ll be returned to the Speech Properties dialog box There, you ll see a new speech profile with the name you provided For example, in Figure 9-20 I ve created a speech profile named Alan..

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To qualify for such tax treatment, an REIT must meet speci c legal criteria, such as earning 75% of its gross income from rents or mortgage interest, and distributing 90% of each year s taxable income to shareholders REITs have been around for more than 30 years, but for a long time they were small in number, with a sizable proportion devoted to investing in high-risk construction lending The number of REITs devoted to owning properties has mushroomed since the early 1990s, and their aggregate value has gone up more than 20 times Yet today, they may own little more than 5% of total commercial real estate in the United States Some industry observers expect that eventually REITs will own the majority of commercial properties in the country Some REITs are private, but most are publicly traded Why distinguish REITs from any other US.

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