October 20, 1996

CO-OPS and condominiums were insistently touted during the conversion fever of the 80's as an apartment dweller's chance to reap the benefits of enhanced equity, to no longer serve as a funnel into someone else's rental flow, to be part of a community that shared the rewards and risks of home ownership -- and, when the time came, to be able to sell. But for thousands of residents in as many as 800 co-op and condominium buildings in New York City, that slice of the residential pie has turned out to be half-baked. Sponsors of those buildings -- most for legitimate business reasons and some with less than forthright intent -- have failed to complete the conversion, leaving resident buyers in a kind of limbo. The buyers, like all securities investors, were supposed to be protected by what are commonly called blue-sky laws -- state regulations intended to insure that there are no hidden risks in that marvelous, not-to-be-missed investment offering; that the promoter is not trying to sell ''so many feet of blue sky.''

United States airline industry is reviving; airlines, at last learning from past, are slashing huge debt burdens and reining in urge to expand, trying to smooth out wild cyclical swings; are expected to have profit margin of about 4 percent in 1996, best performance since 1978, and are expected to fill average of 70 percent of seats, best since World War II; graphs; photos (L)

Rise in oil prices in face of investor disbelief contrasted with investor confidence that stock prices will continue to rise; graph (M)

Thomas M Chan, the first Chinese-American commander of the New York City police precinct that takes in Chinatown, must walk a fine line between being too mindful of the community's feelings--and therefore lax in enforcement of the law--and being so preoccupied with law and order that community support might dry up; wins high marks from Cantonese elders for cracking down on quality of life issues; has failed so far to establish a good working relationship with fast-growing immigrants from China's Fujian province, and this has made him a lightning rod for criticism by those who question his neutrality; photos (M)

Possible explanations for continuing rise in stock prices discussed; graphs; drawing (L)