NOTE:

Not Available.

Includes deferred profit sharing funds and pension funds of corporations, unions, multiemployer groups, and nonprofit organizations.

STOCK TRANSACTIONS OF SELECTED FINANCIAL INSTITUTIONS
AND FOREIGN INVESTORS, 1979

Private noninsured pension funds, open-end investment companies, life insurance companies and property-liability insurance companies, combined, purchased $56.7 billion and sold $46.5 billion of common stock during 1979, resulting in net purchases of $10.2 billion. In 1978, their gross purchases were $47.7 billion; gross sales were $42.7 billion; and net purchases were $5.0 billion. Their common stock activity rate / was 26.8% in 1979 as compared to 26.1% in 1978.

Private Noninsured Pension Funds

During 1979, private noninsured pension funds purchased $31.0 billion of common stock and sold $18.0 billion, yielding net purchases of $13.0 billion. A year earlier, they had gross purchases of $24.2 billion, gross sales of $18.9 billion, and net purchases of $5.2 billion. Their common stock activity rate was 21.1%, in 1979 and 21.0% in 1978.

Open-End Investment Companies

Purchases of common stock by open-end investment companies rose from $12.8 billion in 1978 to $13.1 billion in 1979; sales increased from $14.5 billion to $15.9 billion. billion. Consequently, their net sales increased from $1.6 billion in 1978 to $2.8 billion in 1979. Their common stock activity rate was 44.5%, up slightly from 43.9% a year earlier.

Life Insurance Companies

Life insurance companies purchased $2.9 billion of common stock for their general accounts in 1979, about the same amount as the year before. Sales rose to $3.4 billion from $3.1 billion. As a result, net sales increased from $0.1 billion in 1978 to $0.6 billion in 1979. The common stock activity rate was 22.1% in 1979 versus 22.5% in 1978.

*/ Activity rate is defined as the average of gross purchases

- 2

For their separate accounts, life insurance companies purchased $4.4 billion of common stock and sold $4.9 billion in 1979, resulting in net sales of $0.5 billion. These results compare with net sales of about $0.1 billion in 1978, resulting from purchases of slightly more than (and sales of slightly less than) $3.4 billion. The common stock activity rate for their separate accounts was 38.5%, up from 30.3% a year earlier.

Property-Liability Insurance Companies

Purchases of common stock by property-liability insurance companies totaled $5.4 billion during 1979, up from $4.4 billion a year earlier. Sales increased from $2.8 billion in 1978 to $4.3 billion in 1979. Net purchases of $1.1 billion were recorded in 1979, down from $1.6 billion in 1978. Their common stock activity rate rose from 24.8% in 1978 to 27.6% in 1979.

Foreign Investors

Foreign investors purchased $22.6 billion of corporate stock in 1979 and sold $21.0 billion, yielding a net acccumulation of $1.6 billion. In 1978, their purchases were $20.1 billion; sales were $17.7 billion; and net purchases were $2.4 billion.

2-330 QUARTERLY COMMON STOCK TRANSACTIONS AND ACTIVITY RATES OF SELECTED FINANCIAL INSTITUTIONS

1/ Includes deferred profit sharing and pension funds of corporations, unions, multiemployer groups and nonprofit organizations.
Mutual funds reporting to the Investment Company Institute, a group whose assets constitute about ninety percent of the assets
of all open-end investment companies.

2/

3/

Note:

Transactions of foreign individuals and institutions in domestic common and preferred stocks. Activity rates for foreign
investors are not calculable.

Activity rate is defined as the average of gross purchases and sales (annualized) divided by the average market value of holdings.
Source: Pension funds and property liability insurance companies, SEC; Investment companies, Investment Company Institute; Life
insurance companies, American Council of Life Insurance; Foreign investors, Treasury Department.