20 THE WORK OF THE STOCK EXCHANGE 
in respect to their priority to earnings, and in the event of 
liquidation to assets. Volumes could be written on this sub- 
ject alone. American railway bonds present unusual complexi- 
ties in this respect. 
The money in which the interest or the principal of bonds 
's payable, is also frequently an important consideration. Some 
bonds specifically provide for payment in gold—a feature 
which is apt to become highly significant in case the given cur- 
rency suddenly abandons the gold standard and in terms of it 
gold goes to a premium. Sometimes, too, bonds are made pay- 
able in a foreign currency, or in several different currencies 
at the option of the holder. During the currency troubles in 
Europe after the war, this aspect of many European bonds 
proved highly important in determining their current value. 
Shares of Stock.—In complete contrast to bonds are shares 
of ordinary or common stock. Such shares do not, like bonds, 
represent a debt owed to their holders by the issuing company, 
but rather the company equities of which the shareholders are 
the owners. A shareholder is therefore really a partner in the 
given business enterprise, rather than a creditor of it. The 
company is under no necessity (unless such an arrangement is 
specially stipulated) of repaying the nominal value of the 
shares to their holders, and indeed American shares frequently 
have no par value anyway. An almost equal latitude (again 
apart from special stipulations to the contrary) is enjoyed by 
the company in respect to what dividends shall be paid to 
shareholders, or indeed whether any dividends at all shall be 
paid. On the other hand, the possible dividends which a com- 
mon shareholder may receive are not usually limited as in the 
case of bonds. The amount of the dividend to be paid on com- 
mon stock is usually determined by the directors of the com- 
pany, subject to ratification by a majority of the stockholders. 
Thus shares as such are attended with more risk than bonds, 
but possess greater possibilities of profit.