, 1 
77 
with Debentures, Preference and Govern 
ment stocks of more recently developed 
countries. The individual stocks selected will 
be of a lower grade, and therefore individually 
less safe from a capital point of view. This 
loss in individual safety must be counter 
balanced by additional sub-division of the main 
divisions of geographical distribution. In this 
way the smaller inherent safety of such 
stocks will be compensated for by the more 
perfect distribution of external risks. Lists 
properly constructed on this principle afford 
quite satisfactory capital safety. 
¡V. High Income the main object. 
An investor to whom a still higher yield 
than that described in Example III. is of 
paramount importance can obtain this result 
by investing in Ordinary or Deferred shares 
and low-grade Debentures or Preference 
shares. An example of this class of investment 
scheme is shown facing page 87. There are a 
number of experienced investors who consider 
a list of this nature quite as safe as lists made 
in accordance with Examples II. and III. ; 
but great discrimination is necessary, both in 
the selection of the geographical divisions and 
of the individual stocks, in order to make 
a high yielding list of this description safe.