4
BurLerin No. 20
equities have a symmetrical distribution, but the distribution for companies
with 50 millions of equities or over is irregular.
The class intervals with the greatest number of cases for each
group, and the concentration of cases about the interval are as follows
Dominant Class ~~ Concentration
Interval about Interval
Companies with 50 and more millions of equities. .17-.219 319,
Companies with 10-49 millions of equities. ...... .22-.269 509,
Companies with 5-9 millions of equities. ........ .27-.319 379,
Starting with the largest group of companies, and progressing tc
the smallest group, the class interval of greatest prominence increases,
each one being one class interval higher. That is, the larger companies
appear to finance with less common stock than is the case with the
smaller companies,
The percentage figures of concentration are very low for the largest
and smallest size companies, showing that ‘the ratios of the component.companies
are not greatly concentrated about any single figure
or average. The 50 per cent concentration for the companies of 10-49
millions of assets is large compared to the others.
DISTRIBUTIONS BY KIND OF COMPANY
Classifications of the ratio of common stock were made according
to Gas and Electric, Traction, and Holding Companies, and the resulting
frequency distributions are given in Table VId of the Appendix.
In each of these distributions, the class interval with the greatest number
of cases and the concentration of cases about the interval are as
follows *
Type of Company
Gas and Electric. . |...
Holding .......
Traction _
Concentration
Class Interval of Cases
.17-.219 419,
.22-.269 . 479%,
132.360 4867
From these figures, it appears that the Gas and Electric Companies
use less common stock in their financing than either the Holding or
Traction Companies. The Traction Companies use the most common
stock; a larger number of companies have a ratio from 32 per cent to
37 per cent than any other figure. More gas and electric companies
had a Common Stock to Total Equities ratio of between .17 and .219
than for any other ratio group.
DISTRIBUTIONS BY TYPE YEARS
That changes are taking place in the ratios of Common Stock to
Total Equities is shown by the trend over a period of years, As in
