The work of the Stock Exchange

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Monograph

Identifikator:: 1831284952

URN:: urn:nbn:de:zbw-retromon-225876

Document type:: Monograph

Author:: Meeker, James Edward http://d-nb.info/gnd/126597340

Title:: The work of the Stock Exchange

Edition:: Revised edition

Place of publication:: New York

Publisher:: The Ronald Press Company

Year of publication:: [1930]

Scope:: XVI, 720 Seiten; Illustrationen, Diagramme

Digitisation:: 2022

Collection:: Economics Books

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

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Document type:: Monograph

Structure type:: Chapter

Title:: Chapter I. The evolution of securities

Collection:: Economics Books

24 THE WORK OF THE STOCK EXCHANGE company’s bonds have been repaid, preferred stockholders have the next call, and common stockholders must take what remains after preferred stockholders have been satisfied. There is in practice too wide a variety in the terms accord- ing to which preferred stocks are issued, to make generaliza- tions concerning them altogether easy. Some American com- panies issue “first” and “second” preferred stock issues, at the same or at different dividend rates. Many preferred stocks are in their indentures accorded features ordinarily associated with bonds, such as convertibility into common stock, or retira- bility at a price. Usually but not always preferred stocks in America have no vote. Some preferred issues acquire the vote in case their own dividends, or the common stock dividends are passed, or in case the ratio of company net earnings to the amount of the preferred dividend falls below a certain point. The truth is that preferred stock in America as abroad is really an intermediate form of security, partaking of the nature of bonds as well as common shares, and in all cases the careful investor in preferred stock should thoroughly study the exact provisions attending each particular security issue. Theoreti- cally, a preferred stock entails less risk, and is attended by greater stability in market price, than a common stock. Prac- tically, however, there are many exceptions to this rule. The Chief Forms of Securities.—A feature of securities frequently overlooked, yet highly important in its effect on Stock Exchange operations, is the form in which they are issued.” Essentially, there are three chief forms for securities: (1) “inscribed”; (2) “registered”; and (3) “bearer.” Inscribed securities are mainly peculiar to Great Britain, and are practically unknown in the United States. No security certificates at all are issued for them, and evidence of owner- ship depends directly and solely upon the entry of the owner’s name in the register of the issuing company or government. Transfer of such issues thus consists, not in the delivery of ® Appendix If.

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