Thinking Ahead.

The rising importance of financial institutions in this country, coincident with changes in the tax structure, has had a profound impact on our financial markets. In the bond market, long-standing relationships between the various kinds of securities have been changed. What do these developments mean for business? In the stock market, the entrance of pension plans, mutual investment funds, and life insurance companies on a large scale has changed the character of ownership of many industrial corporations, with far-reaching implications. By concentrating on "blue chip" stocks, are the financial institutions in effect bidding against each other and forcing prices up to unwarranted levels? Are the needs of small and medium-size companies being neglected? What about variable annuities? How should financial institutions owning common stocks exercise their prerogatives as stockholders? And so on. [ABSTRACT FROM AUTHOR]