Year-end stocks, funds

January 03, 1993

In today's Business section, you'll find a year-end review of all major stocks and mutual funds. Besides serving as a quick analysis of the financial winners and losers of 1992, the charts offer important tax and investment information.

* The tables provide an estimate of how much investment income you must declare for 1992.

You must declare dividends on stocks as income, says Lyle Benson of the Towson-based accounting firm of Coyne & McClean. You also must declare as income dividends and gains on mutual funds.

Although you should wait for the mailed statement that tells exactly how much income was earned -- a "1099" form sent by the mutual fund, for example -- you can use the tables to estimate earnings and tax liability, he said.

* You also can use the performance analysis to help invest your money in 1993.

Richard Cripps, director of equity marketing at Legg Mason Wood Walker Inc., says one-year comparisons of capital gains and price-to-earnings ratios (the relationship of profits to stock price) help him pick companies that will shine.

You'll have to consider many things when deciding where to invest money. But he suggests applying three basic analytical tools to a company: comparing it to overall stock market indexes, comparing it to direct competitors and noting the stock price range.

Mr. Cripps looks for companies that outperform the averages, and is wary if a company's stock has jumped around significantly during the year.

INSIDE:New York Stock Exchange, Page 5L

NASDAQ National Market, Page 8L

American Stock Exchange, Page 10L

Mutual funds, Page 12L

To figure out how stocks performed, and what that will mean for the coming tax bills, investors can look at the following information in the stock tables:

Range: The first two numbers in the stock market tables give the highest and lowest points of the company's stock price in 1992. The disparity between the two numbers gives an indication of the stock's volatility.

Dividend: In the stock tables, the number under the dividend heading represents four times the last quarterly payment, not the total amount of dividends paid during the year, and will give only a rough estimate of tax liability.

Price to earnings ratio: This heading, abbreviated as "P/E" represents the relationship between a company's stock price

and its most recent four quarters of announced

earnings. The neighboring heading compares the most recent stock price with an average of analysts' estimates of the company's 1993 earnings. P/E ratios are one of the most commonly used yardsticks to determine how well a company is performing. But investment experts warn that a company's P/E ratio can be misleading if earnings were affected by special circumstances, such as sale of a division.

Capital gains: The last three numbers in the stock tables give bTC indications of how much a stock's price has risen or fallen during the year. You don't have to declare as income any profit or loss on the stock price if you did not sell the stock.


The mutual fund tables provide slightly different information.

Objective and rank: Funds are grouped by their investment aims, so you can choose the fund that best fits your goals. Each fund's performance is compared with others in its group and ranked accordingly.

Dividends: Unlike the stock tables, the mutual fund dividends stated here are the actual amount paid per share to investors in 1992. You can use this number to estimate your tax liability.

Gains: Unlike stocks, gains on mutual fund investments can be considered taxable income. So, you can also use this number to estimate tax liability.


Major stock market indexes, their closes on Dec. 31 and percent change in 1992.

Index.. .. .. .. .. .. .... ...Cls... .. .. .. ..Chg.

Dow Jones industrials.. .. ..3301.11.. .. .. ...+4.2%

500.. .. .. .. .. .. .. ..435.71.. .. .. ...+4.5%

NYSE Composite.. .. .. .. .. .240.21.. .. .. .. +4.7%

Amex Index.. .. .. .. .. .. ..399.23.. .. .. ...+1.1%

NASDAQ Composite.. .. .. .. ..676.95.. .. .. ..+15.5%

NMS Composite.. .. .. .. .. ..300.06.. .. .. ..+15.7%

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