454 EXPLANATORY NOTES Revenue and Expenses of New York Stock Exchange The revenue and expense data are received from NYSE member firms pursuant to Rule 416(b)(1) of the New York Stock Exchange which became effective January 1, 1972, and SEC Rule 17a-5 (amended) which became effective January 1, 1976. Revenue and expenses are reported on an unconsolidated basis and without adjustments to investment accounts for respondents' equity in profit or share of loss of affiliates or subsidiaries. Securities Commissions Commissions earned on all agency equity, debt and options transactions including principal transactions and net commissions earned on introduced accounts carried by other brokers and on omnibus accounts carried for other brokers. Realized and Unrealized Gain (Loss) in Trading and Investments Realized and unrealized gain (loss) from market making activities in securities held for sale in the ordinary course of business and not identified as held for investment. Dividends and interest income on securities in trading accounts are treated as an adjustment to gain (loss) and are not reduced by any allocation of Federal income taxes. Profit (Loss) from Underwriting and Selling Groups Gross profit (loss) from management of or participation in underwriting syndicates and selling groups is determined as the difference between proceeds of securities sold and their purchase price and allowances received from or given to other brokers. Any unrealized loss on securities unsold at the time the underwriting account was closed is considered as a deduction from the proceeds of securities sold. Income From Sale of Investment Company Securities Income derived from sale of investment company securities as a retailer and as an underwriter. Interest Income on Customers' Accounts Interest on customers' securities and commodities accounts for financing customer margin debits. - 2 Other Income Related to the Securities Business Other income related to the securities business includes among other things service charges, proxy solicitation fees, subscription fees for periodic publications, fees received from private placements of securities not registered under the Securities Act of 1933, fees for puts, calls, other option transactions not conducted on a national securities exchange, and dividends from securities in firm investment accounts. |