Safeguarding Invested Capital. 35
very searching- and complete investigation into the enter
prise concerned and the particular issue proposed. This
inquiry is conducted by the Registry’s permanent staff
of experts, valuers and other specialists being consulted
on technical points, and legal or other professional
assistance being obtained.
On the basis of the information and opinions thus
obtained a report is drawn up, which usually covers a
period of several years. This report is so accurate and
exhaustive that its conclusions form a reliable guide
regarding the safety and desirability of the issue under
consideration. If the report is found to be in every way
satisfactory, an agreement to purchase the entire issue
is entered into, every provision in such agreement being
made to secure and protect effectively the interests of
those who will purchase the security.
The issue is thereupon offered for subscription and
gradually sold, shareholders of the Registry receiving
a special discount on the price at which the offer is made.
The names and addresses of the purchasers are care
fully recorded. The Registry thereafter remains in
close touch with them, and through the operation of the
purchase agreement also maintains its close relations
with the enterprise behind the issue.
Thus the interests of all the individual holders
of such a security are welded together through the
medium of the Registry, and being so combined are
carefully safeguarded by means of the influence which
the Registry can always bring to bear upon the under
taking concerned.