Die doppelte kaufmännische Buchhaltung

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Identifikator:: 1011909774

URN:: urn:nbn:de:zbw-retromon-27018

Document type:: Monograph

Author:: Leitner, Friedrich http://d-nb.info/gnd/139681477

Title:: Die doppelte kaufmännische Buchhaltung

Edition:: Sechste und siebente Auflage

Place of publication:: Berlin

Publisher:: Vereinigung Wissenschaftlicher Verleger Walter de Gruyter & Co., vormals G.J. Göschen'sche Verlagshandlung - J. Guttentag, Verlagsbuchhandlung - Georg Reimer - Karl J. Trübner - Veit & Comp.

Year of publication:: 1923

Scope:: 1 Online-Ressource (VI, 349 Seiten)

Digitisation:: 2018

Collection:: Business and Management Classics

Usage license:: Get license information via the feedback formular.

Document type:: Monograph

Structure type:: Contents

Collection:: Business and Management Classics

Flight From Bonds to Stocks 203 ing world. They evolved five reasons for the now proved fact that stocks are a better investment than bonds: first, because the stockholder stands to win as well as to lose; second, because modern dividend policy is toward steadiness; third, because a portion of the stockholders’ earnings is reinvested for him and ultimately yields further dividends; fourth, be- cause the unstable dollar tricks the bondholder, but any effect on the stockholder is largely neutralized; and fifth, because diversification can correct the irregularities of the stockholder’s income but not that of the bondholder. This fifth reason is much emphasized by these writers, especially by Edgar Smith and Kenneth Van Strum. They show that whatever truth there is in the “risk” carried by the stockholder as compared with the bondholder, this risk can be partly neu- tralized by diversification. If one invests $10,000 in ten different companies, putting $1,000 into each, while he does run a real risk of losing all that he has invested in some one or two of these companies, this risk is mostly offset by the probability that some other company will prosper exceedingly. Both Smith and Van Strum show how this diversification does neutralize the risk and correct the unsteadiness of the stockholder’s income. The bondholder, like the stockholder, may be said to be “gambling.” In fact, he is more like the man betting on “heads” or “tails.” The dollar will go up or down for all bonds at once, and there is no wav to iron out that gamble by diversification. The

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