Safeguarding Invested Capital. 17 
stock, the total cost and present value ol all the stocks 
held, the yield afforded by each, and the total income 
produced are also ascertained and recorded. 
An analysis of this kind discloses the total present 
realisable value of the whole list of investments— 
how the capital is distributed among the various stocks 
held—how much capital has been invested in each 
geographical area, the total income produced by the 
investments during tlfe financial year prior to the 
analysis, and the average yield, calculated on present 
values, returned by each stock. Lastly, it reveals 
whether, and to what extent, the investor has gained 
or lost capital in the past, and which stocks have dis 
played increases or decreases in capital value. 
The next step in the investigation is to ascertain the 
quality of the investments. When this has been done 
and the different qualities of stocks in the investor’s 
list have been separated and arranged under their 
respective categories, a comparison is instituted between 
them and the best stocks of each similar kind available. 
One department of the Registry’s staff is solely 
engaged in testing the respective merits of all the 
stocks known throughout the world, and thus, by a 
process of elimination, maintaining an up-to-date list of 
the best stocks of every quality. 
By the before-mentioned comparison of such stocks 
with the securities of a similar kind held by the investor, 
the Registry can at once ascertain and show whether, 
and to what extent, the investor has been wise in his 
selection in the past. 
D