Compared to the four indices, investments in tobacco companies were higher for shareholders in 1990-2002 (Figure 1, Panel A). The value of a $100 investment in the tobacco industry through the end of 2002 was $360, or more than $115 (47%), higher than an index of the most similar sectors to tobacco companies. A corresponding investment in the S-P index would have yielded $249. The value of an investment of $100 in 2002 was $308 for the total market (NASDAQ, AMEX and NYSE) and $250 for the Russell 2000 Small Cap Index. The value of a $100 investment in three tobacco companies exceeded the S-P returns: Philip Morris ($528), Liggett ($898) and British American Tobacco ($494). For RJ Reynolds, the value of the investment ($127) in 1991-2002 was less than the value of the S-P (US$240). With a four-year return for 1999-2002, an investment in tobacco in early 1999 through the end of 2002 brought in $162 (from $198 to $360). By contrast, at the end of 2002, the same investments in similar sectors increased to $112 (from $223 to $245). In contrast, pre-MSA increases were higher for comparison firms ($100-223) than for tobacco companies ($100 until 198). Yields on all other indices were negative during this period. In the Smokeless Tobacco Master Settlement Agreement, which was implemented at the same time as the Master Settlement Agreement, the leading manufacturer of tobacco-free tobacco (United States Tobacco Company, now known as the U.S. Smokeless Tobacco Company) agreed with the jurisdictions signed by MSA, as well as Minnesota and Mississippi.
In the ten years since the agreement, many national and local governments have opted to sell so-called tobacco bonds. It`s a form of securitization. In many cases, bonds allow national and local governments to transfer the risk of a reduction in future agreements to bondholders. However, in some cases, obligations are supported by secondary commitments of government or local revenue, prompting some to view it as a perverse incentive to support the tobacco industry, on which they now depend for future payments of that debt.  In the mid-1950s, individuals in the United States began suing companies responsible for the manufacture and marketing of cigarettes for the damage associated with the effects of smoking. Over the past forty years in 1994, more than 800 private complaints have been filed against tobacco companies in public courts across the country.  Individuals have made egregious claims for negligence, negligent advertising, fraud and violation of various state consumer protection laws. The tobacco companies were able to oppose these complaints. Only two applicants have ever won and both decisions have been overturned in the appeal process.  When scientific evidence was established in the 1980s, tobacco companies argued that the negligence to create was negligence in the use of negligence, arguing that the adverse health effects were previously unknown or had no substantial credibility. Overall, from 1999 to 2002, participating producers maintained or improved their performance in terms of investor equity performance and profits from domestic tobacco sales.
However, these companies have lost market share to MNPs and NPMs. The decline in exports was also not anticipated due to the WMA`s incentives. On November 23, 1998, Philip Morris, RJ Reynolds, Lorillard (Loews Unit) and Brown-Williamson (U.S. subsidiary British American Tobacco) and 46 Attorneys General signed a $206 billion agreement, known as the Master Settlement Agreement (MSA). A fifth company, Liggett (a unit of Vector Group), has finally signed with MSA. Results: Returns on investment in the tobacco industry exceeded the returns on other companies` securities, with each of the four indices considered a comparator. Domestic tobacco receipts increased between 1999 and 2002