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Money And Investments | by Montgomery Rollins



A reference book for the use of those desiring information in the handling of money or the investment thereof

TitleMoney And Investments
AuthorMontgomery Rollins
PublisherGeorge Routledge & Sons, Ltd
Year1917
Copyright1917, Montgomery Rollins
AmazonMoney and Investments

Fifth Edition

Other books by the same author

Odd Rate Bond Values - Convertible Securities - Stocks and Their Market Places - Municipal and Corporation Bonds - Bond, Stock and Interest Tables - Serial and Instalment Bond Values Tables - Tables of Bond Values, Interest Payable Annually - Tables of Bond Values, Interest Payable Semi-annually Laws Regulating the Investment of Bank Funds, Etc, Etc

Gift Of Dedicated To Those Op Small For Tunes And Who Are Dependent Upon The Wise Investment Thereof.

-Foreword. I. In Explanation
There is not any book which is of especial value in aiding one to an understanding of the many intricate expressions and terms of the financial world. Most attempts in this line have either been by so...
-Foreword. I. In Explanation. Continued
The necessity, perhaps, for a little financial knowledge on the part of women is not so urgent as formerly. In early days, the strenuous domestic cares left them little time, if any, to the care or th...
-II. Investment And Speculation Suggestions
The tremendous and invincible force of prosperity which spread throughout our States, beginning in 1897, the like of which no other nation has ever experienced, has enabled many corporations, which me...
-II. Investment And Speculation Suggestions. Part 2
Misplaced confidence has been ruinous to the small fortunes of thousands. Undoubtedly there are numerous bonds of Southern and Western municipalities as well as bonds of public service corporations, w...
-II. Investment And Speculation Suggestions. Part 3
The question often arises as to the advisability of investing money for a long or a short time. The best method to pursue depends very largely upon the financial condition existing at the time of the ...
-II. Investment And Speculation Suggestions. Part 4
That is the point it is desired to make clear, for probably much unnecessary loss has been incurred by those unwilling, at the time, to take a small one, but who have held on and then taken a greater ...
-II. Investment And Speculation Suggestions. Part 5
It is evident that business conditions is a broad subject, but there are certain underlying principles which may be taken as an infallible guide, namely: First: The crops - of main importance - th...
-II. Investment And Speculation Suggestions. Part 6
The writer's idea of enumerating in the foregoing matter some of the things upon which the successful speculator of the present day should be posted, and some of the things for him to consider, is to ...
-Acceptance
When a time draft is received for collection, although not due, it is presented to the person against whom it is drawn for acceptance. This is done by his writing across its face the word Acc...
-Accident Insurance
A form of insurance by which the person taking out the policy may recover from the company in case of accident to himself, the form of payment by the company being either so much per week - according ...
-Accrued Interest
One of the most common expressions in connection with investment dealings, and one very frequently not clearly understood. Let us take, for example, a $1,000 bond bearing 4% interest, or, in other wor...
-Agent
One who represents, acts for, or in behalf of, another, who is called his principal. In brief, they are divided into two classes - special and general. The latter is one who is appointed to do...
-Arbitrage
Buying a security in one market and selling it in another at a better price; taking advantage of a difference in current quotations upon the same security in two different markets, by buying in one an...
-Assessed Valuation
When a banker offers for sale a bond of any municipality, the assessed valuation is one of the important facts set forth. There is a general rule that the total debt of a municipality shall not be ...
-Assumed Bonds
Bonds issued by a corporation, the control or ownership of which passes into the hands of another corporation, which latter agrees to be responsible for the payment both of the principal and interest ...
-Attorney's Opinion
The necessary procedure by a corporation issuing bonds is very complex, and the work, after it is accomplished, is generally reviewed by some competent lawyer, and approved by him, before such an issu...
-Auditor
One who makes a profession of examining and reporting upon the financial condition of a firm, corporation, municipality, etc.; a person competent to examine accounts; compare the charges with the vouc...
-Back Spread
This is a term used in connection with arbitrage dealings, which subject it is first necessary to understand. In dealings of this kind between New York and London, for instance, there is a differen...
-Bank
A corporation which undertakes the care of money The most ancient bank is supposed to have been established in Venice in 1157. (See The History and Principles of Banking by James William Gilb...
-Bank Account
For the benefit of those who have had no experience, and who desire to open a bank or trust company account against which to draw checks, a few suggestions are here given: Select your bank; find out ...
-Bank Bill
See National Bank Notes and Bankers' Bills. Bank-Book (or Pass-book). The book in which a bank makes a written entry of each sum of money deposited by the customer, arid is that person's evide...
-Banker
It seems hardly necessary to define this term other than to say that the banker, in general, is a custodian of the funds of others. Ricardo distinguishes between a banker and a capitalist, h...
-Bank Of England
Known as the Old Lady of Thread-needle Street. Its corporate name is The Governor and Company of the Bank of England. Situated in an irregular square opposite the Royal Exchange and residence of...
-Banking Department
5. Proprietors Capital 14,553,000 6. Rest 3,213,176 7. Public Deposits 12,141,417 8. Other Deposits 41,261,064 9. 7 day bills & other bi...
-Bank Of France
Established during 1800 by Napoleon, after he became First Consul, who desired a financial institu-tion that should not only be of service to the Government, but also subservient to it.1 It has one c...
-Bank Of Germany
The Imperial Bank of Germany; commonly called the Reichsbank. The King of Prussia in 1765 founded a State institution entitled The Royal Bank, which continued until 1846, when it underwent a change an...
-Bankrupt
2 When one is unable to meet his debts as they fall due he may make a fair statement of his condition out of court in order to pay his creditors, and effect a settlement with them on what may seem to ...
-Bank Statement
It is customary in many of the larger cities to issue at stated intervals, generally once a week, a tabulated statement of the condition of the banks which are members of the Clearing-house Associatio...
-Baring Panic
During the autumn of 1890, when speculation on the London Stock Exchange was running riot, principally in regard to securities of the Argentine Republic, including not only the national obligations, b...
-Bar Silver
Silver as it comes from the smelter in the form of bars and which has not been, or, in fact, may never be, minted into coins. On March 31, 1921, the commercial value of an ounce of fine silver was 57....
-Beneficial Interest
Certificate of Beneficial Interest. Example: The Temple Iron Co. is controlled by certain railroad companies, and operated in their mutual interests. The latter, not wishing to use their funds for i...
-Bids And Offers
All offers to buy or sell securities in the New York Exchange are for 100 shares of stock or for $10,000 par value of bonds unless otherwise stated. Bids and offers may be made only as follows: Cas...
-Black Friday
September 24, 1869. One of the greatest convulsions of the many that Wall Street has experienced. Jay Gould and his partner, James Fisk, had engineered a bull movement in gold which had advanced to 16...
-Blanket-Mortgage
A mortgage covering several different properties, or a collection of properties, and given to secure a single debt, or sometimes given to secure indebtedness previously created in different forms. Whe...
-Board Of Education
For school purposes, a separate municipality is often created with its own officers and territorial lines. Such geographical divisions are often called School Districts. This custom is very common i...
-Board Of Investment
(See Savings Bank.) Board of Trade of the City of Chicago. A commercial exchange organized and chartered under the laws of Illinois to promote uniformity in the customs and usages of merchants, an...
-Bond
2 An instrument by which a government, municipality, or corporation contracts and agrees to pay a specified sum of money on a given date (sometimes reserving the right for earlier payment), the bond i...
-Bonded Debt
The fixed indebtedness of a municipality or incorporated company in the form of bonds. (See Bond.) The question of the amount of bonded indebtedness fair to place upon property, fair to both the s...
-Bond Of Indemnity
In investment matters the common use of the bond of indemnity is in case of a lost security. It is a form of guaranty protecting a corporation (firm or individual) in event of presentation at some...
-Bond Values Tables
First read Net Return upon the Investment. The computations involved therein are based upon the principle that the holder of a bond, bought at a premium, is expected to immediately reinvest a suffi...
-Books Close
In order that corporations, especially the larger ones, may pay a dividend, it is necessary to fix an interval of one or more day's duration, during which it is possible to make a correct list of the ...
-Borrowing Stock
A broker (or any one) borrows stock when he has made a contract to deliver, and the stock which he has sold, for any one of various reasons - such as having sold it short - cannot be delivered at ...
-Bucket Shops
2 (See Margin, which read first.) Bucket shops are run by irresponsible brokers, not members of any stock exchange, and who do a marginal business upon one dollar a share and upwards.3 As a mat...
-Building And Loan Associations
A form of bank incorporated under the laws of many of our States which has experienced a rapid growth. They are to encourage the accumulation of money on the part of those of limited means, for the er...
-Business Paper
Often referred to as business receivables, or trade paper. Notes, acceptances, etc., taken in the course of one's business in exchange for goods delivered, for instance, and not notes given in ex...
-Call
A demand for the payment of money; a demand for payments (generally in installments) of subscriptions to stocks or bonds; an assessment for which one is legally liable; a notice of intention to prepay...
-Called Bonds
Bonds called for payment or redemption. In many issues of bonds the right is reserved to pay off all, or a certain portion of the issue, under conditions and at such times as may be specified in the b...
-Call Of More
As no one unfamiliar with the meaning of call, or put-and-call, would be likely to wish an understanding of call of more, it seems sufficient to quote Mr. Higgins's explanation as given in his...
-Capital Account
The question often arises as to the proper account to charge expenditures made upon a property; that is, whether such expenditures properly should be paid for out of the earnings of the company - char...
-Capitalization
For the purpose of this work, this subject has reference to the stocks and bonds which a corporation has outstanding. Simplicity in capitalization is always to be commended, and the simpler form th...
-Care Of Securities
Every reasonable precaution should be taken against the loss of a security, either by theft, fire, or whatever the case may be, and no better precaution can be taken than by the rental of a box in som...
-Cash
Delivery of the security sold before a certain fixed hour upon the day the contract is made. A sale for cash usually means for immediate delivery and payment (stock exchange rules) or, better, simu...
-Cashier
In banks or financial institutions, primarily the one who has charge of the cash or securities. This title is most commonly used in connection with national banks, but seldom in the case of savings ba...
-Cashier's Check
A check drawn by a bank against itself, and usually signed by its cashier - if it has an officer with such title - payable when presented at the bank drawing the same. Such a check is commonly used by...
-Centime
The smallest French coin, the one hundredth part of a franc, and equivalent to about one-fifth of a cent in United States money. 1 In December, 1906, owing to the rise in the market price of silver, ...
-Certificate Of Deposit
An acknowledgment in writing given by a bank that it has received from the person named a stated sum of money on deposit.1 As a rule it draws interest, and may be either made payable on demand or at a...
-Certified Check
A check across which some competent bank officer has written, or stamped,1 over his signature, satisfactory evidence that the person having drawn the check has sufficient funds on deposit at the bank ...
-Check
1 A written order by a person having money, or the equivalent of money, in a banking institution for it to pay, on demand, during banking hours, a stated sum to the person named in the order, or to wh...
-Check-Book
1 A depositor in a national bank, trust company, or any other bank of deposit, is provided by the bank with a book of checks, by which means the money deposited may be withdrawn. This book contains ...
-Circulation
See National Bank Notes/' Circulation Per Capita in the United States. The actual metallic and paper money in circulation, as shown by the United States Treasury Department, beginning with the year...
-Clear
To free from encumbrance. Bonds, stocks, or any securities, are cleared when the person who has contracted to purchase them pays for and receives delivery of the same. Or a broker, acting without ...
-Clearing-House
1 Let us take Boston2 for example. A given bank receives through its course of business each day a great many checks, which are payable at various other banks in the city. To collect all these checks ...
-Clearing-House. Continued
Clearing-House Agent. It is first necessary to understand the matter under Clearing-house. The particular bank clearing for a non-member bank is the latter's clearinghouse agent. Clearing-House...
-Collateral
Really collateral security. This is a security for the performance of agreements, or for the payment of money, and is something deposited with the evidence of debt to satisfy the claim of the lende...
-Collateral Note
A promissory note secured by stocks, bonds, mortgages, or other securities. A collateral note, of course, may be given by an individual, firm, or corporation. (See Collateral.) It is quite a com...
-Collateral Trust Bonds
Issued by a corporation, not secured by a mortgage upon its own property, unless upon certain real estate and subject to previous liens thereon, but secured by depositing in trust securities of other ...
-Commercial Agencies
In New York are located the head offices of the two principal commercial agencies of this country; namely, Bradstreet's and Dun's. These agencies furnish subscribers periodically with books in whic...
-Commission
The charge made by any banker or broker, for buying or selling securities for some one else; the banker's, broker's, or promoter's charge for services. When an agent or broker sells or buys a security...
-Common Stock
That part of the capitalization of a company upon which dividends may be paid only after satisfying the requirements of the floating debt, bonds, and preferred stock, if any. It represents the spec...
-Conducting Transportation
Those studying the earnings of a railroad company will often find the operating expenses subdivided under various headings, including the above, which should consist of the following as prescribed by...
-Consolidated Mortgage Bond
Theoretically the name of a corporation bond secured by a mortgage on the entire property formed by the consolidation of several smaller properties. Such a mortgage may be a first mortgage upon the pr...
-Construction Company
A corporation - a firm, individual, or an association of individuals, etc., may perform all the functions of a construction company - which constructs some public work such as a steam or electric r...
-Convertible Bond
A bond, which, at the option of the holder, is convertible, under certain conditions, into other securities issued, usually, by the same corporation. As a rule, bonds are convertible into stock. One ...
-Convertible Collateral Trust Bonds
This issue is endowed with practically the same features as a collateral trust bond, to which subject the reader is referred. The main difference, however, is that the former is secured by collater...
-Copper (Or Coppers)
Copper is used in various ways; with an s in reference to shares of stock of the various copper companies, and without the s to indicate the product of the mine. Copper the metal is a common ...
-Corporation
' A charter may be obtained from the legislature of a State, or from such officers as may be authorized to grant charters, or, even under certain conditions, from Congress. This charter is an instrume...
-Corporation Bonds
A bond issued by an incorporated company, the ownership of which is represented by snares of stock; a bond of a joint-stock company. Bonds issued by governments, States, or any territorial subdivision...
-Corresponding Clerk
This employee of a bank is one to whom the items for collection out of town are turned over. 1 The Wall Street Journal, in its issue of April 21, 1906, refers to these companies as follows: Under ...
-Council Drafts
Also termed council bills, India council bills, India council drafts, etc. These are issued in London and payable in India in rupees, the money in current use in the latter country. The finan...
-Coupon
Interest coupons are small certificates attached to that part of the bond representing the principal sum, each coupon representing the interest upon the bond for a certain period, there being attached...
-Coupon Notes
A coupon note would seem to be an ordinary promissory note having a long enough time to run to call for different interest payments, the interest being represented by attached tickets or coupons, wh...
-Coupon Off
Same as Ex-coupon. Coupons, Collection of. Coupons are almost always made payable to bearer that is, like a ten dollar bill, good in the hands of any one, therefore, care should be taken in tran...
-Credit
(From the Latin credere, to believe.) Delivery of goods in confidence of future payment; deferring a payment. This is nothing more nor less than confidence which one has inspired among others as to hi...
-Cross Trade
An order received to buy and an order to sell the same stock at the same price by a broker, in which event he might let one order offset the other and not fill them upon the exchange at all. It is con...
-Cumulative Income Bonds
See Income Bonds. Cumulative Preferred Stock. See Cumulative. Curb. Securities which are not traded in upon the large stock exchanges, or new securities which have not as yet been listed upon su...
-Daily Balances
Trust companies, as a rule, and sometimes other banking institutions, allow interest to their depositors upon daily balances of over a certain amount, say $300 or more. This means that at the close ...
-Days Of Grace
Generally three extra days given by the grace of the payee (see Payee ) in which a note or other paper may be paid after its maturity. Formerly no interest was charged for the three days, later, ...
-Debenture Bond
An evidence of indebtedness issued by a corporation having precedence over its preferred and common stocks. It is commonly nothing more than a note, very likely in coupon form, and not secured by mort...
-Debenture Mortgage Bonds
See Debenture Bond. Debentures or Debenture Stock. The English equivalent of the American term debenture or debenture bonds, except that in Great Britain such a security is generally and should...
-Delinquent Tax Certificates
These were formerly a not uncommon form of investment in the West, as well as in some other sections.of the country, but their desirability is questionable, as there are many objections. It may be a l...
-Demand Loan
A form of note or promise to pay, the borrower having the right to pay off the loan at any time - presumably not the same day it is made - and likewise the lender the right to demand payment, Sundays ...
-Deposit
The person who places money - or titles to money - securities, or anything of value, in the safe-keeping of a bank, other corporation, or individual, makes a deposit, and in the act of so doing he ...
-Depository Of Public Moneys
See United States Depository. Deposits (Bank Statement). Deposits as referred to under Bank Statement are somewhat difficult to define from the fact that money itself to the full amount of the...
-Depreciation
In making up a statement of earnings of a business or corporation it is very easy to deceive oneself by not taking into proper consideration the falling off in value of the property on account of the ...
-Discount
The percentage or price of a security below its par or face value. Taking the face value as $100, a share of stock selling at 95 would be selling at 5%, or $5 per share, discount. The par value of v...
-Dividend
This is the proportion of the earnings of a corporation received by the owners of its stock, and represents to them their profits in the enterprise. These profits are distributed in proportion to the ...
-Divisional (Or Division) Bond
A railway issue secured by a mortgage upon a division and not upon the entire property, but, as a rule, the direct obligation of the railway company itself. A divisional bond, however, may cover a ...
-Dollar
This is the unit of value not only of the United States, but of several other countries. The United States dollar must contain 25.8 grains of standard gold, .900 fine; the amount of fine gold bei...
-Double Liability
(See Non-Assessable.) Corporations in which shareholders can be lawfully held individually responsible, not one for the other, but equally and ratably, for all obligations of the corporation, to an ...
-Double Taxation
What better illustration of double taxation can be given than the following: Suppose I own a hotel property in Chicago. My place of residence is in some other State, where I pay taxes on my personal ...
-Form Of Draft
Buffalo, N. Y., Jan. 1, 1921. $500. At sight_____________________________________________pay to the Order of The Electric National Bank______________________________ Five Hundred__________________...
-Due-Bill
A non-interest-bearing written agreement to deliver the dividend on stock sold. A written acknowledgment of indebtedness, which is neither made payable to order, nor transferable by indorsement. Gua...
-Electric Light Company Securities
When electric lighting was first introduced, it resulted in depreciation in the market price of gas company securities. It has been found, however, that gas and electric light companies can work harmo...
-Electric Railway Securities
When it became possible to economically apply electric power to the street railway service, the first step was naturally the conversion of the horse propelled cars to those driven by electricity, and ...
-Engineer's Certificate
This is a statement over the signature of an engineer as regards the physical condition of a railroad or other property. This is further explained under the next subject, but the wording of such a cer...
-Engineer's Report
A report by one who by previous education and experience is competent to investigate the physical condition of a railroad, electric light, or such a property as he may be employed to report upon. In ...
-Equipment Trust
It is a common practice among railways, in buying cars, locomotives, etc., to mortgage the same and sell securities secured by this mortgage to raise money for the payment of the equipment. These obli...
-Exchange
Simply expressed, it is this: White owes Black $100. Black likewise owes White $100. They meet and present bills against each other for the amounts. Each receipts his bill and hands it to the other, t...
-Ex-Interest
Without interest; coupon for interest just due and detached. This term is particularly used in reference to registered bonds, which, inasmuch as the interest is forwarded to the holder by check, a...
-Express Company Securities
Frank Haigh Dixon, professor of economics at Dartmouth College, in his article Publicity for Express Companies,1 says, in substance, that the yearly receipts from this large transportation agency ar...
-Extended Bonds
A bond of which the payment of the principal is put off to some future date; the issue ordinarily not being replaced by other bonds, but the same ones left in the hands of investors; the security behi...
-Farm Loans (Or Mortgages)
Loans secured by mortgages on farm properties. The fact that in many sections of the country the lands in the agricultural districts are steadily rising in value has attracted many people towards the...
-Fire Insurance
Any explanation or definition covering the subject of fire insurance is unnecessary here, but a few suggestions to those taking out insurance of this class may be pertinent. Familiarize yourself with...
-First Mortgage Bond
A promise to pay in the form of a bond and secured by a first mortgage. (See Mortgage.) It has first claim on the property of the corporation, as well as upon the earnings. A bond of this kind is s...
-First Refunding Mortgage Bond
Do not confuse this with a refunding first mortgage bond. Note that there is quite a difference whether the word first qualifies refunding or mortgage. A refunding first mortgage bond tak...
-First United States Bank
It was due to the efforts of Alexander Hamilton, the first Secretary of the Treasury, that a charter from Congress, in 1791, was granted authorizing a United States Bank for the purpose of regulating ...
-Fixed Charges
The fixed charges of a corporation are generally conceded to be the interest upon its bonds and floating debt, sinking fund, if any - although the latter may be shown under a separate heading - re...
-Foreign Collections
A bank terms its foreign collections its checks, etc., which are not payable in the city in which it is located. Foreign Department Boston Clearing-house Association. Assuming that the reader ha...
-Forged Bonds
During the winter of 1905-1906 there was a considerable agitation on the subject of forged municipal bonds, and numerous instances occurred causing serious loss and inconvenience. There are several wa...
-Fortnightly Settlement
See Fortnightly Sett ling-days. Fortnightly Settling-days. The four days in London ( account-days ), occurring approximately every two weeks, upon which securities contracted for sale during the...
-Franc
The unit of money of the Latin Union - France, Switzerland, etc., - as the dollar is for the United States and Canada, and equal to $.193 United States money. In quotations of foreign exchange fra...
-Franchise
A particular privilege granted generally to an incorporated body. It is necessary, for instance, for a street railway company to obtain a franchise; that is, a privilege to operate and do business...
-Full Stock
This term was formerly used to distinguish shares of a par value of $100 from shares of a lesser par value, say $25, which, for example, were called quarter stock. Now, all shares on the New York S...
-Funding
Converting debts - not bonded - of various amounts and maturities, or a debt now or soon due, into a unified form, usually with a fixed rate of interest, maturity, etc. As an example, imagine a city t...
-Gas Company Bonds
2 Issue secured by first mortgages, or junior mortgages properly protected, upon gas works have proven a satisfactory class of investment. The percentage of loss has been remarkably small; the failu...
-General Expenses
This is one of the subdivisions of the form prescribed by the Inter-state Commerce Commission, for the classification of the operating expenses of a railroad. It includes the salaries paid clerks and ...
-General Mortgage Bonds
This title has taken the place of the old, but now disliked, blanket mortgage. Secured by a mortgage upon the property of a corporation and subject to earlier mortgages placed upon parts or all of ...
-Gold Banks
Associations may be organized under the National Banking Act for the purpose of issuing bank notes payable in gold. (See Circulation.) Such banks are known as National Gold Banks, or Gold Banks...
-Gold Certificates
As a matter of convenience to the public, the United States Government has authorized the Secretary of the Treasury to receive deposits of gold coin and bullion in sums not less than $20, and issue ce...
-Gold Coinage
The United States Government provides for free and unlimited coinage of gold; that is to say, gold bullion of standard quality may be deposited at the mints in any amount and coined for the benefit of...
-Gold Export Point
Whenever the prices of foreign exchange reaches the point where it is cheaper to buy gold bullion, and ship same, to adjust a debt due than to buy exchange, the gold export point is reached...
-Gold Point
By this may be understood either the gold import point or the gold export point to which subjects reference may be had. Gold Product of the United States. The Secretary of the Treasury, in hi...
-Good Delivery
A security is good delivery when the rules and regulations of the stock exchanges regarding its physical condition and the signing of certificates have been complied with. Good until Cancelled. An...
-Government Bonds
Formerly we understood these to be the interest bearing obligations of the United States of America, but now that New York has become such an international money centre, and Americans, like the Englis...
-Grain
In buying or selling wheat, corn, etc., there are a few essential points to understand although entering into detail upon this subject is not within the scope of this work. Trading in grain is not a c...
-Guaranteed Bonds
(What is set forth under the next subject may be read in this connection.) The main point is not to judge a bond on its guaranty alone, but look upon it as the obligation of the issuing company withou...
-Guaranteed Stocks
Shares issued by one corporation for the payment of the principal, or dividends on, one or more other corporations have legally assumed responsibility. Stocks may be guaranteed as to dividends only, o...
-Guaranty
In financial matters, guaranty, or form of guaranty, usually means the printed or written form, properly signed, upon a security, whereby some party, not originally issuing the security, promises ...
-Holder In Due Course
The holder of an instrument other than the one to whom it was originally given, when obtained in the due course of business and in a legal way. The rights of a holder in due course are quite complex...
-Holding Company
Formed for the especial purpose of holding or owning the shares of another company or other companies; an arrangement whereby financial combinations may indirectly control operating companies through ...
-House Of Issue
A banking house which has the selling of a given issue of securities. How to Keep a Bank (or Trust Company) Account. See Bank Account. How to Open a Savings Bank Account. Although requirements of ...
-Improvement Mortgage Bonds
A junior mortgage is usually understood. An improvement mortgage secures an issue of bonds necessitated in order to provide funds for improvements, additions, betterments, etc., to a property....
-Income
The income of an individual is generally supposed to be the money returned to him yearly from his investments; the interest return from his stocks, bonds, mortgages, real estate, etc. Of course, the m...
-Income Bonds
There is in effect little difference between income bonds and preferred stock, except that upon the former the interest is expected to be paid if earned. The management may decide otherwise, howev...
-Indorse
The person to whom a check, note, or draft is made payable is called the payee. If the payee wishes to make the check (note or draft) good in the hands of some one else, he writes his name across th...
-Indorsed Bonds
The New York Stock Exchange rules provide that Coupon Bonds issued to Bearer, having an indorsement upon them not properly pertaining to them as a security, must be sold specifically as ' Indorsed B...
-Industrial Securities
Securities issued by manufacturing companies. There has, perhaps, been no class of securities which has attracted greater attention the last few years than industrials, so-called, and there is no cl...
-Inheritance Tax
A State tax imposed upon property inherited, not a tax collectible from year to year like city taxes, but collectible only once - at the time of the inheritance of the property - and payable to the St...
-Interest
The charge made and which the borrower pays for the use of money,1 usually expressed in percentage based on a year, i. e. if $3 is paid for the use of $100 for six months, it is an equivalent to $6 fo...
-International Movement Of Gold
This is too intricate and complex a subject of which to attempt an exhaustive explanation within the necessary limitations of this work. Some of the more important influences which have a direct beari...
-Iron Production
The Wall Street Journal gives the following statistics showing the tremendous strides which this country has made in the production of iron: Year Production 1860 821,000 ...
-Irrigation Bonds
In many sections of the West, in order to successfully carry on agriculture, artificial irrigation must be maintained. Companies are sometimes formed which undertake this work, and which issue bonds f...
-Joint Note
First read Joint and Several Note. A joint note is one signed by two or more persons, but the wording of which begins We promise to pay - the words joint and several must not be inserted. In...
-Joint Stock Land Bank
See Addenda. Joint-Stock Company. A company whose ownership is represented by shares of stock. Although this term is occasionally used in America, it is much more common in Great Britain. This term...
-Laundry (Or Laundry Business)
This has reference to washing, so-called. (See Wash Sales.) Law, John. A Scotch financier and an advocate of paper currency. In May, 1716, he founded in Paris, France's first banking institution...
-Lawful Money
Money which the Government declares to be legal tender (see Legal Tender ) in payment of obligations; money which the creditor may not refuse in the payment of a debt except where otherwise expressl...
-Legal Holidays
A day, other than Sunday, which, so far as business of many kinds is concerned, has lawfully the same status as that day. Upon a legal holiday notes may not be collected. Banks and all public offic...
-Legal Rate Of Interest
A fixed rate, established by State law, greater than which no charge may be made for the use of money. An interest charge exceeding the legal rate is called usury and may be penalized by the courts....
-Legal Tender
Money which may be legally used in the payment of a debt, and which the creditor must accept. The laws of the United States specifically state the legal tender qualities of all forms of money in this ...
-Letter Of Credit
(A fuller understanding of this may be had by first reading Exchange.) A method by which persons travelling can obtain money at different points, thus making it unnecessary to carry a large sum at t...
-Liability Insurance
This is a subject to be considered by the investor regarding certain classes of securities. A street railway may be earning enough to pay the interest on its bonds and also good dividends upon its sto...
-Lien
A claim against the property which the possessor may retain until the satisfaction of some demand or a debt due him. A mortgage is a lien. Liens, however, vary in their character. One may hold t...
-Life Insurance
Something about life insurance may not be amiss, although it is impossible to allow much space for the discussion of the kind of insurance most desirable or what class of people ought to be insured, e...
-Listed (Or Listed Securities)
Each stock exchange has certain rules which must be complied with before a security may be traded in thereon. There must be submitted to certain officers of an exchange a description of the security i...
-London Orders
London time is five hours later in the day than New York standard time. That is to say, the sun rises about five hours earlier at London than it does at New York. The London stock exchange opens at...
-London Quotations
These differ from ours, as we give the number of shares, etc., traded in, and the prices realized, but in London only the bid and asked prices are given. (See ' New York Equivalent.) The stock exch...
-London Stock Exchange Transactions
A brief sketch of how bargains, as the English call them, are transacted upon the London Stock Exchange may be of interest. In the first place, in London there are two classes of brokers: The out...
-Maker
The person who signs a note, draft, etc. Making-Up Day. The first of the fortnightly settling-days, which subject see, as well as Contango Day. Making-Up Price. To understand this, it is necessa...
-Margin
Buying stocks upon a margin, - a much used expression and a much abused custom. One of the dictionary meanings for margin is an edge or border, and from that has arisen its use in stock exchange t...
-Mechanic's Lien
A lien on real property (see Lien ) 1 Century Dictionary and Cyclopedia. Which the law allows to mechanics and labourers for work done, or to those supplying materials, in the construction of bui...
-Mercantile Paper (Or Loans)
Notes, bills of exchange, drafts, or any negotiable paper, given by those engaged in the actual purchase or sale of goods, such as a dry goods merchant, for instance. A note given by a street railway ...
-Mexican Coinage Laws
In accordance with authority granted him by the Mexican Congress, President Diaz promulgated the new monetary law prepared by the Ministry of Finance, which became operative May 1, 1905. The following...
-Mexican Dollars
(The Mexican dollar is also called a peso.) An owner of the United States silver dollar, although there is not a gold dollar's worth of silver in it, knows that it can be exchanged for a gold dollar...
-Mixed Collateral
When a loan is secured by more than one kind of collateral (see Collateral Loan ), as, for example, part railway stocks and part mining stocks, the collateral is called mixed. A loan secured in t...
-Mortgage
1 An instrument signed, sealed, and given by the borrower (or mortgagor) to the lender (or mortgagee), or to a third party who holds it as trustee for the lender, by which the latter has the right...
-Movement Of Gold
See International Movement of Gold. Movement of the Crops. New York is our great money centre, and where country banks may keep one-half their lawful reserves. In addition, when money cannot be pro...
-Municipal Bond
Any legally authorized bond issued by village, township, city, county, State, or any territorial subdivision of the same, the payment of which must be accomplished through the collection of taxes, ass...
-N
The ticker abbreviation for new or North. Named Cities. Some of the States, having passed laws restricting the investments of their savings banks, permit the purchase of bonds of cities in ...
-National Bank
1 Incorporated under a charter granted by the United States Government, by which it is given authority to receive money on deposit subject to check, make loans, collect drafts, issue national bank bil...
-National Bank Notes
1 In order to increase the amount of money available for use, and at the same time produce what is known as an elastic currency, that is, a form of money which can be increased or diminished withi...
-Negotiable
A security which can be transferred from one person to another either by directly passing from hand to hand, as in the case of money, coupon bonds, a check made payable to bearer or cash, etc., or...
-Net Indebtedness
The laws of Massachusetts, relating to the investment of savings bank deposits, give a very good definition of this term as follows: The words ' net indebtedness ' shall mean the indebtedness of a c...
-Net Profits
This is used rather more in a commercial sense than net earnings; the latter being applied in reference to railroads, telephone companies, etc. Profits have more the reference to the gain arising ...
-New Jersey Collateral Inheritance Tax
As so many companies have been incorporated under the laws of New Jersey, all executors or administrators of estates of non-residents of New Jersey should bear in mind that there is a collateral inh...
-New York Equivalent
The price at which a security in New York equals the London quotation, taking into consideration cost of shipment, rate of exchange, loss of interest and incidentals. This is so accurately understood ...
-New York Stock Exchange Usage
In all transactions upon the New York Stock Exchange where the face value of a security is expressed in English pounds sterling, the transactions are figured at $5.00, equivalent to one pound sterling...
-Non-Assessable
Stock, the owners of which cannot legally be compelled to make additional payments upon the same, in case of failure of the corporation, or for any other reason. National bank stocks are assessable ...
-Non-Cumulative
First read matter under Cumulative. In the case of a non-cumulative stock, if a dividend is not paid at its regular fixed period, there is no obligation on the part of the corporation to make the ...
-Non-Negotiable
See Negotiable. Non-Participating Policy. This kind of a life insurance policy is one under which the holder has no right to share in the surplus earnings of the company, as explained under Partic...
-Note
A written promise to pay a specified sum of money at some future time. The various kinds of notes, demand time, etc., will be found explained under the several subjects.1 The requirements of a ...
-Outlawed
An obligation, which, on account of the time elapsed since it was incurred, or since any payment of either principal or interest has been made thereon, cannot legally be collected, is said to be outl...
-Overdraw
1 To overdraw one's account. A person having money in a bank subject to check, that is, subject to his written order called a check, may issue such orders on the bank to pay this money out in s...
-Panic
A panic in a theatre is the result of some fright that induces many people to lose their heads, and rush frantically to the exits to escape, having no regard for the weak and helpless or the wiser c...
-Paper Money
Something accepted in substitute of metallic money; money founded on credit; a simple promise to pay bearer in coin on demand; a non-interest-bearing note dependent for payment upon the ability of the...
-Par
State of equality; equal value; equivalence without discount or premium. The usual meaning of par is 100; that is, a share of stock, for example, which bears on its face the statement that it repre...
-Participating Bond
One which, while secured by a mortgage on a specific property, provides that the holder shall share in the profits accruing to the issuing corporation through ownership of the shares in other corporat...
-Payable In Lawful Money
Bonds, notes, or other evidences of indebtedness, in which the borrower agrees to pay principal, or interest, or both, as the case may be, in lawful money of the United States; money which the Gov...
-Peso
The gold peso is the unit of value of the Philippine Islands, and contains 12 9-10 grains of gold, 9-10 fine. Silver pesos, of the weight of 416 grains and of the standard, by weight, of 900 pa...
-Pool
A number of persons uniting or joining their interests for the purpose of buying or selling and increasing or depressing the price of one or more securities, and who agrees to divide the loss or profi...
-Postal
Postal Telegraph-cable Co. Postal Money-orders. The following is from the printed regulations as issued by the United States Post-office Department: Application, The process of obtaining a money-ord...
-Repayment
A domestic order may be repaid at the office of issue within one year from the last day of the month of its issue. Invalid Orders An order which has not been paid or repaid within one year from the ...
-Postal Savings Banks
The U. S. Government regulations in reference to Postal Savings Banks are partially set forth in the following: Service Free. No charge or fee is collected or required in connection with the opening...
-Power Company Bonds
Within the last few years this class of bonds has come into considerable prominence. The ability to economically transmit electrical energy a great distance to generate power is the underlying factor ...
-Power Of Attorney
In financial matters, a written or printed paper signed - and witnessed or acknowledged before a justice of the peace - given by one person to another, whereby the latter receives authority to sign a ...
-Preferred Stock
A stock which has a claim upon the property and earnings of a corporation prior to some other stock; that is, it comes after the bonds and floating debt, if any, but ranks ahead of what is known as c...
-Premium
The percentage or price of a security in excess of its par or face value. Taking the face value as $100, a share of stock selling at 105 would be selling at 5%, or $5 per share, premium. The par value...
-Promoter
1 One who finds the bankers, or moneyed men to finance; that is, furnish, through their clients or otherwise, the necessary capital to organize and set in motion a corporation or industry; the middle...
-Protest
A formal declaration that negotiable paper has been dishonoured. It is customary to send to protest a note, draft, or check, which is not paid upon proper presentation, unless instructions to the ...
-Proxy
In incorporated companies the business is delegated to officers who are elected at a meeting held by the various stockholders, and each holder of stock is entitled to one vote for each share which he ...
-Put
A put is a contract which gives its possessor the right to deliver, to the party signing the same, a certain amount of stock (grain or other commodity) at a named price during the time stated in the...
-Pyramiding
When the uninitiated reads in his newspapers that they are pyramiding the stock market it is not surprising that he doesn't understand, because it would seem that no more substantial structure is k...
-Railroad Aid Bonds
Issued by municipalities to raise funds in order to give financial assistance to a railroad. This is nothing more nor less than a subsidy (refer to that subject) except that, in order to give the as...
-Railroad Securities
1 Probably the best indication of existing business conditions is the railroad earnings; they reflect good and bad periods with wonderful precision. They are transporters, not producers of wealth. The...
-Redemption Fund
If the reader will turn to the subject Financial Bill he will find therein referred to the Act of Congress of March 14, 1900, otherwise known as the Gold Standard Act. This Act further provides as...
-Registered Bond
(Read first Coupon Bond.) Registered bonds are of two forms: First, registered as to principal and interest both; second, registered as to principal alone. A registered bond has the name of t...
-Return Receipts
When the sender desires a return receipt he should indorse the address side of the envelope or wrapper Return receipt desired. An article for registration should not be placed in a street letter bo...
-Reserve
Every member bank - national bank, trust company and State bank, belonging to the Federal Reserve System - is required to maintain an actual net balance equal to a certain percentage of its deposits...
-Reserve Cities
Certain large cities in the United States, other than central reserve cities, in which all member banks in the Federal Reserve System' are obliged to maintain a certain percentage of reserve up...
-Rights
When a corporation has occasion to bring out a new stock issue, the privilege may be given to the stockholders, as of record at the time, to subscribe for the new stock at a price less than the existi...
-Runner's Exchange
To comprehend this, an understanding of the matter under Clearing-house is first necessary. The runner's exchange is an adjunct of the Philadelphia Clearing-House It is a secondary exchange, as...
-Rupee
Although the sovereign (pound sterling) is the standard coin of India, the silver rupee is the money of account; that is, the actual money in current use, and is current at the rate of fifteen t...
-Safe Deposit Companies
Companies incorporated for the purpose of receiving upon deposit, for storage and safekeeping, stocks, bonds, and other valuable papers, money, bullion, jewelry, household gold and silverware, and suc...
-Savings Bank (Or Institution)
A bank organized under the State laws, or under Federal laws if in the District of Columbia, for the purpose of receiving deposits, the intent being that such deposits shall largely be the savings of ...
-Sealed Bid
When an issue of bonds is offered for sale and for which the intending buyers must submit sealed bids, such buyers must state clearly in writing what they will pay for the bonds, in accordance with ...
-Second Mortgage
A mortgage placed upon property which already has another mortgage existing upon it; for instance, a certain piece of real estate supposed to be worth $10,000 has already existing upon it a mortgage f...
-Second United States Bank
The organization of many local banks followed the refusal to renew the charter of the First Bank of the United States, which had expired in 1811. These new banks, together with the existing war - 1812...
-Seigniorage
In the United States, this term has reference to the profit arising from the coinage of bullion. As the Government does not purchase gold bullion, but coins it for private account, there is no profit ...
-Seller's Option
A stock exchange term for a contract under which the seller of a security need not make delivery until the end of a specified time. He also has the right to make delivery any time within the period co...
-Selling Short
Selling something which you do not own with the expectation that the market price of the same will decline so that the security or commodity can be bought at a less price in season to fill the order; ...
-Serial Bonds
An issue of bonds which is payable in instalments. In California, every municipal issue must be made payable - and paid, not refunded - during forty years from its date. A serial bond needs no sink...
-Shipment Of Money
Modern conveniences solve this problem very easily. First: The shipment of the actual money itself: For small amounts registered mail may be used, but the Government liability is limited to $25 in ca...
-Silver Certificates
The act of Feb. 28, 1878, provided that any holder of standard silver dollars might deposit them in sums not less than $10 with the Treasurer or any assistant treasurer of the United States and receiv...
-Silver Coinage
As at present provided by law in the United States, standard silver dollars and subsidiary silver are coined only by the Government for its own account, and from bullion already on hand, and the pro...
-Silver Dollars
See Standard Silver Dollars. Silver Product of the United States. The Bureau of the Mint estimates the total production of silver in this country for the year 1919 as 55,285,196 fine ounces, value...
-Sinking Fund
Sums set aside at stated intervals to provide for the payment of all or part of the principal of a debt. A method of sinking or extinguishing it; a provision for an obligation not yet matured, and as ...
-Sovereign
A gold coin of Great Britain equal in value to the pound sterling, or $4.866 1/2 United States money. 1 Smollett in his History of England says: The directors (April 7,1720) opened their books for ...
-Squeeze Of Shorts
To understand this subject, first read Selling Short and then Borrowing Stock. When there is a large amount of stock being borrowed by numerous people, of course the borrowers are known to the len...
-Standard Copper
The quotations made upon the London Metal Exchange for copper are published twice daily. Under the rules of the Metal Exchange, copper of three qualities may be delivered in fulfilment of sales, as fo...
-Standard Of Value
1 By an Act of Congress April 2, 1792, passed upon the recommendation of Alexander Hamilton, there was established a standard of value between gold and silver at the ratio of 15 to 1; i.e. the value...
-Standard Of Weight And Fineness
The proportion by weight of pure metal in coins to the alloy is the fineness. In the United States it is 900 parts by weight to 100 parts of alloy in both gold and silver. The weight of a gold doll...
-State Bonds
An obligation in the form of a bond issued by a State, the payment of which must be accomplished through the collection of taxes assessed upon the taxable property embraced within its corporate limits...
-Steamship Company Bonds
The average investor has not had the opportunity to familiarize himself with this class of investments, owing to the somewhat infrequency of these issues appearing upon the market. One very notable ex...
-Sterling Loan
Bonds, or other forms of indebtedness, payable in English money; i. e. pounds sterling. Also loans made on sterling (which see) bills of exchange. Bills payable, say, at sixty days' sight, are draw...
-Stock Dividend
Issuing new stock pro rata to those already holding stock of the same company; the new stock to be the equivalent of profits earned by the corporation which are to be retained as additional capital ra...
-Stock Exchange
The Century Dictionary defines a stock exchange as An association of brokers and dealers or jobbers in stocks, bonds, and other securities, created under State or municipal authority, or by corp...
-Stock Exchange Seat
In order to possess the right to buy or sell securities upon a stock exchange, one must be a duly elected member of the same, pay his initiation fee, and share in the assets and liabilities of the exc...
-Stop Loss Orders
Sometimes called stop orders. A method of limiting one's losses, particularly in dealing in stock exchange securities; for example, suppose A owns 100 shares of a certain stock costing $90 per share...
-Stop Payment
When a check is lost it is simply necessary to notify the bank against which it is drawn; giving a description of the check, generally the number it bears; the amount for which it was drawn; the date,...
-Straw Name
A general example will best illustrate this term: The laws of many States stipulate that savings banks shall not loan money to an individual, firm, or corporation, without collateral or mortgage secur...
-Subject
See Subject to Sale. Subject to Call. See Called Bonds. Subject to Check. Any deposit in a banking institution which the depositor has the right to withdraw without notice to the bank, by the ...
-Subsidy
It is the custom of many Governments to give financial assistance to public enterprises - railroads, steamships, and the like - especially at their inception, as without such help the prosposition mig...
-Sub-Treasury
1 Unless otherwise specified, the New York sub-treasury is understood, although there are sub-treasuries in other large cities in the United States. The former is located on Wall Street, and through...
-Swings
Ups and downs of periods of business activity. From the close of the Civil War these swings, back and forth from good to bad times, followed this course; Years Period of Duration ...
-Tangible Assets
Property which one may touch physically, such as real estate, machinery, cash, etc. Good-will would not be considered a tangible asset. 1 If an article costs so many taels, it should be paid for ...
-Taxes On Stock Transfers
Sec. 3524. 4. Capital stock, sales or transfers: On all sales, or agreements to sell, or memoranda of sales or deliveries of, or transfers of legal title to shares or certificates of stock or of profi...
-Telephone Securities
Bonds, stocks, and notes of the American Telephone & Telegraph Company and its licensee companies. For the sake of brevity we will refer to the former as the parent company and the latter as the opera...
-Terminal Company Bonds
Proper terminals - that is, passenger and freight stations, yard room and trackage - especially in the larger cities, has become a matter of vast importance to railway companies. In many instances the...
-Third Mortgage
A mortgage placed upon property which already has two other mortgages existing upon it: for instance, a certain piece of real estate, supposed to be worth $15,000, has against it a first mortgage for ...
-Ticker
1 A small printing machine operated by telegraph, by which the outside world obtains reliable information as to the prices of securities and commodities dealt in upon the principal exchanges of the wo...
-Ticket-Day
Next to the last of the London Fortnightly Settling-days (see that subject). Upon this day clearing tickets are passed. The broker prepares a ticket upon which is given the buyer's name and address ...
-Tipster
One who advises another what to buy or sell, with the expectation of making a profit, if the advice is followed, either by the business being done through the one giving the tip, or by being given a...
-Traders
Those who make a business of buying and selling securities upon their own accounts. They must not be confused with bankers who sell to regular clients, or with brokers who execute orders on a commissi...
-Transfer Books Closed
See Books Close. Transfer in Blank. First read Transfer of Stock.transfer in blank means that the owner or person in whose name stock is registered signs his name in the proper place on the certif...
-Transfer Of Stock
Transfer of ownership in a corporation from one person to another. The actual method of accomplishing this is for the holder of the certificate (see Stock Certificate) to fill in a blank to be found...
-Treasury Bills
A form of short time borrowing by the Government of Great Britain. It was first introduced in 1877. The bills are drawn in sums of 1,000, 5,000 and 10,000 each, either for three or for six months, ...
-Trust
There are two meanings commonly attached to the use of this term: the trust as popularly known, and the legal trust, so-called. In its popular sense, it means a combination of competing industries...
-Trust Company
A corporation chartered under State laws and not amenable to Government control, as in the case of national banks. Trust companies, however, do very much the same business as national banks as regards...
-Trustee
Used most commonly in reference to an individual, banking house, bank, trust company, etc., acting as trustee of a mortgage. When a corporation desires to borrow money by the issuing of bonds ther...
-Turned Over
To sell; dispose of. Turned over their stocks at a profit; sold them at a profit. Turn in the Market. A change in the trend of prices. Twenty-Cent Piece. A silver coin of the United States minted...
-Underlying Mortgage
See Underlie. Under the Rule. The meaning of this term may be best explained by using this rule of the New York Stock Exchange as an example: When the insolvency of a member or firm is announced...
-Underwriting
1 A method of guaranteeing the sale of an issue of securities. Let us take this to illustrate: A banking house is to offer at par and interest bonds amounting in par value to $100,000,000. An under...
-Unification
At the time when the president of the New York Central & Hudson River R. R. Co. took the presidency of the Big Four R. R., so-called, and the Michigan Central l The decline in security values in 19...
-United States Depository
The Secretary of the Treasury is authorized to appoint any national bank as a depository for the moneys of the United States Government. This is a method which the Government adopts in order that a ...
-United States Public Debt
One is apt to think that the debt of the Government is its outstanding bonds, but this is incorrect, for paper money of all kinds, even although not interest bearing, is figured into the debt statemen...
-Value Received
The giving an equivalent in value to the obligation. Formerly there was considerable controversy whether or not, in a bill of exchange or promissory note, it was essential to its validity that value ...
-Voluntary Association
An example of the use of such an association as the above is that of the Massachusetts Electric Companies, a voluntary association managed by a board of trustees, who hold the title to its assets, ...
-Warehouse Receipt
A written evidence issued by a warehouse company showing that certain commodities have been stored with it. Suppose that a merchant imports a quantity of wool. He is allowed to keep the same in what i...
-Warrant
State, county, city, or town. An order given by some authorized official of a municipality upon its treasurer, for payment to some person for services rendered, and which this person presents to the t...
-Wash Sales
One broker orders another to sell a certain quantity of stock at a fixed price, and when it is sold on the stock exchange, the first broker buys it back again. The stock does not actually change hands...
-Water Company Bonds
These must not be confused with municipal water bonds, which are the obligation of the town or city issuing them. Water company bonds are the obligation of an incorporated company and secured by a...
-Without Recourse
Without responsibility or liability. Every one who indorses a note or check is responsible for its payment, if its original signer does not pay it. This responsibility can be avoided by the indorser p...
-Woman's Signature
Women puzzle bankers, and business men in general, by the way they often sign their names. It may not occur to them that the banker does not necessarily know that the wife of Henry E. Fisher is Jane W...
-Miscellaneous
I. The ticker abbreviation for first. It is used in connection with such securities as first mortgage bond, first preferred stock, etc. II. The ticker abbreviation for second. It is ...
-Blue Sky Laws
Laws looking to the regulation of investment dealers in the vending of securities, for the purpose of protecting investors from unscrupulous and dishonest dealers. These laws do not attempt to prohib...
-Cancelled Trade
Matched orders are used to manipulate the market. The process consists in giving orders to buy and to sell the same stock at the same price by which an artificial activity is given, and likewise cha...
-Deed Of Transfer
After the sale of a registered security has been effected upon the London Stock Exchange, one of the steps necessary for the final consummation of the bargain is the drawing up of a transfer deed. T...
-Organization
A national farm loan association may be organized in any community where 10 citizens owning land desire to borrow an aggregate of not less than $20,000. The land must be unencumbered or the proceeds ...
-Powers
These associations are organized for the primary purpose of giving to each borrower the benefit of the combined credit of all its members to the extent of the capital contributed and the limited liab...
-Limitations
1. No loan may be made except upon the security of first mortgages. 2. The amount of the mortgage can not exceed one-half the appraised value of the land and 20 per cent of the permanent improvemen...
-Fractional Warrant
(First read Rights.) The small stockholder is often faced with the problem of not owning a sufficient number of shares to entitle him to a full share of new stock. His position was definitely settle...
-Inscribed Stock
The English use this term and also registered stock, but with different meanings. A company will issue to the original subscriber to its stock a certificate evidencing the fact that upon its books ...
-Lumping
When a London broker buys, in one lot, more of a certain security than ordered by a customer, either for the sake of filling another order at the same time - or even for his own account - he lumps h...
-Maturity
At first thought, it would seem that there were nothing to be said upon this subject - that stocks have no fixed maturity and that every bond matures upon some definite date. But there are many except...
-Morris Plan
This is a plan devised for the purpose of lending money for any legitimate purpose at reasonable rates to persons of moderate means, such as wage-earners, salaried employees, and professional or busin...
-Net Funded Indebtedness
As defined by the Federal Reserve Act, this term means the legal gross indebtedness of the municipality (including the amount of any school district or other bonds which depend for their redemption u...
-Official List
The full title is The Stock Exchange Daily Official List, and is the London equivalent to our list (to which subject refer). This is issued twice daily under the authority of the Committee for Ge...
-Open End Mortgage
From the standpoint of limitation of the indebtedness under the mortgage, there are three generally accepted classes. The first is known as a closed mortgage under which no more indebtedness can be ...
-Rural Credit Associations
These associations have been, organized in certain sections of the South and West for the purpose of supplying land owners and farmers with long time loans at a low rate of interest. They are not in a...
-Split Stocks
These are to be found in Great Britain, where the custom exists of dividing their ordinary (which corresponds to the American common) stock into two other classes. The principle was first introduc...
-Ticket
(See Ticket-Day. ) When a sale of a registered or inscribed security is made upon the London Stock Exchange, the member who has made the purchase prepares a document, which upon ticket-day h...
-Torrens Titles (Or Law)
Robert Torrens, an English Customs official, in Australia, conceived this plan which bears his name, and based his idea upon the following: As real estate is fixed, and cannot be taken away by the pu...
-Federal Reserve Districts
Sec. 2. As soon as practicable, the Secy. of the Treas., the Secy. of Agriculture and the Comptroller of the Currency, acting as The Reserve Bank Organization Committee, shall designate not less tha...
-Federal Reserve Act
Stock not held by member banks shall not be entitled to voting power. The Fed. Res. Board is hereby empowered to adopt and promulgate rules and regulations governing the transfers of said stock. No ...
-Federal Reserve Banks
Sec. 4. When the organization committee shall have established Fed. Res. Dists. as provided in Sec. 2 of this Act, a C't'f. shall be filed with the Comptroller of the Currency showing the geographical...
-Federal Reserve Banks. Continued
No Senator or Representative in Congress shall be a member of the Fed. Res. Board or an officer or a director of a Fed. Res. bank. No director of class B shall be an officer, director, or employee of...
-Stock Issues; Increase And Decrease Of Capital
Sec. 5. The capital stock of each Fed. Res. bank shall be divided into shares of $100 each. The outstanding capital stock shall be increased from time to time as member banks increase their capital st...
-Division Of Earnings
Sec. 7. After all necessary expenses of a Fed. Res. bank have been paid or provided for, the stockholders shall be entitled to receive an annual Div. of 6% on the paid-in capital stock, which Div. sha...
-State Banks As Members
Sec. 9. Any bank incorporated by special law of any State, or ogan-ized under the general laws of any State or of the U. S., desiring to become a member of the Fed. Res. System, may make application t...
-Federal Reserve Board
Sec. 10. A Fed. Res. Board is hereby created which shall consist of 7 members, including the Secy. of the Treas. and the Comptroller of the Currency, who shall be members ex officio, and 5 members app...
-Federal Advisory Council
Sec. 12. There is hereby created a Federal Advisory Council, which shall consist of as many members as there are Fed. Res. Dists. Each Fed. Res. bank by its board of directors shall annually select fr...
-Powers Of Federal Reserve Banks
Sec. 13. Any Fed. Res. bank may receive from any of its member banks, and from the U. S., deposits of current funds in lawful money, Nat.-bank notes, Fed. Res. notes, or checks, and drafts, payable up...
-Open-Market Operations
Sec. 14. Any Fed. Res. bank may, under rules and regulations prescribed by the Fed. Res. Board, purchase and sell in the open market, at home or abroad, either from or to domestic or foreign banks, fi...
-Note Issues
Sec. 16. Fed. Res. notes, to be issued at the discretion of the Fed. Res. Board for the purpose of making advances to Fed. Res. banks through the Fed. Res. agents as hereinafter set forth and for no o...
-Note Issues. Continued
Any Fed. Res. bank may at its discretion withdraw collateral deposited with the local Fed. Res. agent for the protection of its Fed. Res. notes issued to it and shall at the same time substitute there...
-Refunding Bonds
Sec. 18. After 2 years from the passage of this Act, and at any time during a period of 20 years thereafter, any member bank desiring to retire the whole or any part of its circulating notes, may file...
-Bank Reserves
Sec. 19. Demand deposits within the meaning of this Act shall comprise all deposits payable within 30 days, and time deposits shall comprise all deposits payable after 30 days, all savings accounts an...
-Bank Examinations
Sec. 21. Sec. 5240, U. S. Rev. Sts., is amended to read as follows: The Comptroller of the Currency, with the approval of the Secy. of the Treas., shall appoint examiners who shall examine every memb...
-Loans On Farm Lands
Sec. 24. Any Nat. B'k'g. Asso. not situated in a central reserve city may make loans secured by improved and unencumbered farm land situated within its Fed. Res. Dist. or within a radius of 100 miles ...
-A - Account Day
A The ticker abbreviation for assented, or Class A. A and O. Interest or dividends payable semi-annually, April and October. A. 1. Highest grade; none better. A Bond (or A Stock)...
-Account Days - Adjustment Mortgage Bonds
Account Days See Fortnightly Settling-days Account Sales The statement which a broker, agent, or commission merchant gives his customer, showing how his account stands. Accounts Payable Open ...
-Administrator (Or Administratrix) - Agio
Administrator (Or Administratrix) A person named by the Probate Court, or other proper authority, to take charge of the goods and estate of one dying without a will. Ad Val Ad Valorem. Ad Valorem...
-Agiotage - American Rails
Agiotage This is a foreign term having commonly two meanings: First, the rate or price of exchange; second, speculation in stocks, bullion, exchange, etc. 1 Defined by the Supreme Court of the Uni...
-Americans - Argentines
Americans The general foreign - particularly London - name for United States securities. As a rule, however, securities that are dealt in upon the New York Stock Exchange are more especially understo...
-Asked Price - Assessment And Fraternal Insurance
Asked Price The price at which a security or commodity is offered for sale. The asked price of Western Union Telegraph stock is 95 when that is the price at which it can be bought. Assaying A c...
-Assets - Atchison (Or Atch)
Assets Everything of any supposed value belonging to a person, business, or corporation is called assets; such as property, real estate, machinery, merchandise, material and stock in process of ma...
-Atlantic Ports - Averaging Up
Atlantic Ports As usually understood, Boston, New York, Philadelphia, and Baltimore. At Sight Payable on presentation. At the Market. An order to buy or sell at the best price the market affords a...
-Award - Bank Balance
Award In relation to investments, acceptance of a proposition to buy; generally used in reference to some issue of bonds, for the purchase of which bids have previously beep submitted. (See Sealed ...
-Bank Check - Banker's Acceptance
Bank Check Same as Check. Bank Clearings See Clearings. Bank Commissioner One who examines into the affairs of, and has certain supervision over, the chartered banks in the State under whic...
-Bank Note - Bank Of England Notes
Bank Note Not real money, but a substitute for money. A bank's non-interest-bearing promise to pay lawful money to bearer on demand, the transfer from one person to another being accomplished by mere...
-Bank Of England Return - Bay Shilling
Bank Of England Return See Bank of England Statement. Bank Of England Statement An idea of the weekly statement of the Bank of England (for further information upon this subject see Bank of Eng...
-Bear - Belt Lines
Bear One who believes that conditions are ripe for a decline in prices or one who desires such an event, and talks bearish accordingly. One may believe that the price of a certain security is abo...
-Berlin Discounts - Bill-Book
Berlin Discounts Rates at which good commercial paper is being discounted (read Discounted ) at that point. Betterment (Or Improvement) When a railway company replaces a 60 lb. rail with a 9...
-Bill Broker - Bills Payable
Bill Broker In England, one who makes a business of handling promissory notes, bills of (inland) exchange/' etc. Sometimes called bill merchant. Bill Merchant See Bill Broker. Bill Of Cred...
-Bimetallic Standard - Board Man
Bimetallic Standard The use of two metals as a standard. (See next subject.) Bimetallism In reference to the currency question, the free coinage and use of both gold and silver as legal tender to a...
-Board Room - Bonus Bonds
Board Room A room in a broker's office where customers may obtain quotations of sales almost immediately after the transactions are made upon the various exchanges. Tickers are installed in all th...
-Books Open - Brassage
Books Open (See Books Close.) Transfers of stocks may again be made. Book Value The worth of any business or corporation, as shown by its own books. Suppose a corporation of $100,000 capital stoc...
-Break - Broker's Note
Break Break in the market: a sudden and considerable decline in prices. Break Even To close a transaction with neither profit nor loss; to come out just even. British Columbia The British Colum...
-Bucketed - Bullion Point
Bucketed When an order has gone through the machinery of a bucket shop and been accepted by the same, theoretically executed, it has been bucketed. No actual purchase or sale takes place, the ...
-Bullion Value - Buying Order
Bullion Value The commercial value of the precious metals as distinguished from the face value of coined money. If a gold five-dollar piece has been reduced in weight, by wear, so as to contain but $...
-Buying Outright - Callable
Buying Outright An absolute purchase for which full payment is made. Buying Up See Averaging Up. B. V. These letters stand for book value. (See that subject.) C When printed upon the tap...
-Call Loan - Carry
Call Loan See Demand Loan. Call Money See Demand Loan. Calumet Calumet & Hecla Mining Go. (Copper.) Cambist One who deals in exchange; a person posted upon foreign exchange and the ...
-Carrying Charges - Cash Dividend
Carrying Charges (See Margin.) The interest charged by brokers for the amount of money advanced by them to customers in marginal transactions. Also a Chicago Board of Trade term indicating storage ...
-Cash Grain - Centavos
Cash Grain Grain for delivery at once. Spot Grain has the same meaning. Cash Surrender Value See Surrender Value. Castings Copper, which, from impurities, is defective in' strength and elec...
-Centennial - Certified
Centennial Centennial Copper Mining Co. Central Reserve Banks National banks located in New York City, St. Louis and Chicago. (See Central Reserve Cities.) Central Reserve Cities Certain of th...
-Certified Accountant - Charter Number
Certified Accountant See Certified Public Accountant. Certified Public Accountant One who has passed an examination (in certain States) and received a certificate authorizing him to use the titl...
-Chasing Eighths And Quarters - Cipher Code
Chasing Eighths And Quarters Used in reference to one satisfied with small profits. Chattel Mortgage A mortgage on personal property, movable goods, or live stock, and given to secure a debt or pro...
-Circular - Clique
Circular See Prospectus. Circular Letter Of Credit See Letter of Credit. Circulating Note A bank-note or other paper money. City Clearings First understand the matter under Clearing-Hous...
-Close Corporation - Coffee
Close Corporation A stock company whose shares and management are in the hands of a few persons, and the stock of which is seldom, if ever, publicly offered. Closed The settlement of an account. In...
-Coin Certificates - Collections
Coin Certificates Paper money specifically repayable in coin, such as our gold treasury certificates and silver treasury certificates. Coin Notes reasury notes of Act of July 14, 1890 are...
-Colon - Commercial Bill
Colon Monetary unit of Costa Rica, equal to $0.465 United States money. Columbian Half Dollar By an act of Congress, August 5, 1892, $2,501,052.50 of silver half dollars, of special design, were mi...
-Commercial Borrowers - Community Of Interests
Commercial Borrowers Borrowers of money, as set forth under Commercial Paper. Commercial Discounts Notes given by those engaged in commercial enterprises - dry goods, hardware, etc., - upon which...
-Comparisons - Consol Certificates
Comparisons When a stock exchange broker compares his sales and purchases with other brokers to determine that no misunderstandings exist, comparisons have been effected. (See next subject.) Compa...
-Consolidated Annuities - Consols Contango Day
Consolidated Annuities Three per cent, consolidated annuities. See Consols. (The rate is now 2 1/2%.) Consolidated Bonds See Consolidated Mortgage Bond and Consols. Consolidated Exchange 1...
-Consols Settlement - Contango Day
Consols Settlement Explained under Consols for Account. This settlement consists of a contango day, making-up day, and account day. Construction Account Construction account is treated ...
-Continental - Convertible Income Bonds
Continental All Europe, exclusive of the British and other Isles. Continental paper money, issued by authority of the Continental Congress during the Revolutionary War, and used to defray the greate...
-Convertible Paper Money - Corner
Convertible Paper Money Paper money which the holder has the right to present at any time for redemption at a parity in metallic money. This is distinguished from inconvertible paper money, which ...
-Corporation Paper - Cotton Bill
Corporation Paper Notes, acceptances, etc., held against incorporated companies. Mill paper may be corporation paper, but all corporation paper is not necessarily mill paper. Corporation S...
-Cotton Port Receipts - Credit Currency
Cotton Port Receipts The weekly net receipts of cotton at the principal Southern ports, such as Galveston, New Orleans, Mobile, Savannah, Charleston, Wilmington, etc. Cotton Ports Galveston, New Or...
-Credit Insurance - Crown
Credit Insurance There are companies which will insure a manufacturer, or wholesaler, against loss arising from selling goods on credit. The usual method is for the wholesaler to show his average los...
-Ct - Currency Certificate
Ct The ticker abbreviation for certificates. Cum Dividend The English equivalent of the American term dividend on. Cum Rights Inclusive of rights. Cum Rts Cum rights, i. e. inclu...
-Current Assets - Deal
Current Assets Shifting and changeable assets2 such as cash on deposit and on hand, accounts and bills receivable, marketable securities and inventories. (See also Quick Assets.) Current Liabili...
-Dear - Deed
Dear Money had a tendency to be dear; meaning that there was a tendency towards an advance in interest rates at which money could be borrowed. Dear Money High interest rates; money difficult to ...
-Deed Of Trust - Deliveries
Deed Of Trust See Trust Deed. Defaced Coin Metallic money which has been tampered with; cut, stamped, injured, or changed in any way. 1 How to Invest Money, E. R. Gabbott. Default A failur...
-Delivery Day - Destroyed Securities
Delivery Day Among those trading in grain, for future delivery, the first trading or business day of the month is so known. The seller's option feature, however, permits of delivery on any business...
-Detroit United - Discount Rate
Detroit United Detroit United Railway Co. (Street Railway.) Differential A rate less than the regular or tariff rate allowed to a road disadvantageous situated, by a competitor in order to equalize...
-Discount Rates - Dividend In Liquidation
Discount Rates The rates at which first-class paper is being discounted. (See Discount and Bank of England Discount Rate.) Discretionary Accounts Accounts in which the buying and selling, the...
-Dividend Off - Documents
Dividend Off The sale of a stock with the agreement that the dividend about to be paid shall not go to the buyer; or that the buyer of a stock is not entitled to the next dividend paid. Sometimes cal...
-Dollar Bond - Double Up
Dollar Bond Read Dollar Stock, substituting bond for stock. Dollar Credits (See Circular Letter of Credit.) Credits for use in countries where the dollar is the monetary unit. Dollar Ex...
-Dr - Dummy
Dr Debit. or Debtor. Drachma The monetary unit of Greece, being equal to the French franc, or $0.193 United States money. Draft An order in writing from one person to another to pay to the...
-Dump - Edison
Dump A lot of stock was dumped upon the market, meaning that a great deal was sold for the purpose of getting rid of it; that is, the stock was undesirable, either on account of high price existing...
-E - Equity
E E. These letters stand for errors excepted, and have practically the same significance as E. & O. E. El Elevated or Electric. Elastic Currency (See National Bank Notes.) A kind of money...
-Erie - Exchequer Bill
Erie Erie Railroad Company. Formerly the New York, Lake Erie & Western R. R. Co. Erratic A very uncertain condition of prices; first up and then down. Under these conditions the stock market is sai...
-Exchequer Bonds - Extension Bonds
Exchequer Bonds In England, very much the same as exchequer bills. They have a definite time to run, however, not exceeding six years, with interest at not greater than 5 1/2% per annum; the rate b...
-Extension Of Mortgage - Fancy Stocks
Extension Of Mortgage When a mortgage on real estate falls due, it may be agreeable to both the borrower and the lender to extend it. An overdue mortgage is perfectly good and no signing of papers or...
-Farthing - Financial Bill
Farthing The smallest English coin, being one-fourth of their penny, and equivalent to about one-half a cent in United States money. Fd (or Fdg.). Funding. Federal Federal Mining & Smelting Co. (...
-Financial Year - First Consolidated Mortgage
Financial Year Sometimes used in the place of fiscal year, to which refer. Fine Bars Gold or silver bars containing 99% of pure metal are generally so considered. Fine Gold Gold which is free ...
-First General Mortgage Bonds - First Trust Mortgage
First General Mortgage Bonds (Read General Mortgage Bonds.) This is not only an issue secured by a general mortgage, but the first one of that nature placed upon the property. First Lien See ...
-Fiscal Year - Fleece
Fiscal Year Any yearly period, regardless of the calendar year, at the end of which any firm, corporation, or municipality may close its books in order to determine its financial condition. Fish Sca...
-Flier - Forced Circulation
Flier A purchase or sale by a speculator with the expectation of an early profit; something bought with the gambler's spirit, with an understanding that the chance for profit is very speculative. Fl...
-Forced Liquidation - Foreign Loans
Forced Liquidation A stock exchange phrase meaning that the owners of stock are obliged to convert the same into cash in order to obtain necessary funds. Forced Sale A sale of a debtor's property w...
-Foreign Rails - Free Silver
Foreign Rails The English term for all foreign railroad securities, although the London stock broker is usually a little more explicit, using the term Cuban Rails for railroad securities of Cuba;...
-Free Tontine Insurance - Funds
Free Tontine Insurance See Tontine Insurance. Freight Density The same as ton miles per mile of line. It measures the general volume or density of business done. To find the freight density, a...
-Futures - Gold Exchange
Futures (Explained under Grain.) There was a United States Supreme Court decision in the Chicago Board of Trade case, in which Judge Oliver Wendell Holmes concluded with the statement that transac...
-Gold Exchange Standard - Gold Reserve
Gold Exchange Standard The monetary system under which silver and minor coins form the chief part of the circulation, but are kept at a fixed value in gold by government control of their quantity and...
-Gold Standard Act - Graft
Gold Standard Act See Financial Bill. Gold Standard Of Value See Standard of Value. Gold Treasury Certificates See Gold Certificates. Goschens See first part of Consols. Go Short Se...
-Grain Bill - Gross Earnings
Grain Bill A Bill of exchange (see that subject) drawn against a shipment of grain. Grain Pit See Pit. Grain Roads The railway companies, particularly of the West and Middle West, which deri...
-Gtd - Half-Eagle
Gtd The ticker abbreviation for guaranteed. Guanajuato The Guanajuato Consolidated Mining and Milling Co. (Gold.) Guarantee An undertaking that the engagement or promise of another shall be...
-Halfpenny - Hawley Lines (Or Roads)
Halfpenny A small coin of Great Britain, equal to about one cent United States money. Half-Sovereign A gold coin of Great Britain, equal in value to 10 shillings, or one-half the English pound st...
-Heavy - Immediate Shipment
Heavy The market was heavy on profit taking; meaning that prices had advanced sufficiently to tempt people to sell their securities; enough to cause a decline in prices, for, in order to find a mar...
-Imp - India Council Bills
Imp The ticker abbreviation for improvement. Imperial Bank Of Germany See Bank of Germany. Import Point Of Gold See Gold Import Point. Improvement See Betterment. Improvement B...
-India Council Drafts - Industrial Insurance
India Council Drafts See Council Drafts. India, Money of. See Rupee. India Rupee Paper See Rupee Paper. Indirect Exchange Same process as explained under Triangular Operation. Individ...
-Industrials - Intercepting Sewer Bonds
Industrials See Industrial Securities. In Exchange See Payable in Exchange. Inflate. Prices are inflated when securities are selling for much more than they are intrinsically worth. To ...
-Interchangeable Bonds - International Checks
Interchangeable Bonds After understanding the difference between a registered and a coupon bond by referring to those subjects, it will be clear that interchangeable bonds are those which are ...
-International Exchange - Investment
International Exchange See Exchange. International Securities Securities dealt in upon both the London and New York stock exchanges. Inter-Relation of Interests. At times, the control by a cert...
-Investment Banker (Or Broker) - Irrevocable
Investment Banker (Or Broker) A dealer in investment securities. He buys for his own account in large amounts, and then resells (retails) to his customers, the difference between the buying and selli...
-Isle Royale - Jobber
Isle Royale The Isle Royale Copper Co. Issue House See House of Issue. Issue Par The price at which a security is first sold, or issued, regardless of its actual face value. Issue Price The ...
-Jobber Of Exchange - Joint Bonds
Jobber Of Exchange One who sells exchange to banks and other dealers in foreign exchange, who resell to their own clients. The jobber might be termed the wholesaler of exchange, and those w...
-Joint Collateral Trust Bonds - Kaffirs
Joint Collateral Trust Bonds See last subject. Joint Indorsement Sometimes a note is made payable to two or more persons, not partners. Their indorsement in such a case is joint. Joint Mortgage...
-Kangaroos - Lackawanna
Kangaroos A term for the securities (mining, etc.) of West Australia, dealt in upon the London Stock Exchange. Katy Missouri, Kansas, and Texas Railway Co. Keep Alive Not cancelled, but still dra...
-Lafayette Dollar - Ledger
Lafayette Dollar United States silver dollars, of special design, minted during 1900 in recognition of the unveiling of the statue of Lafayette, at Washington, D. C. Total amount coined $50,026; weig...
-Legality Of Securities - Levee Bonds
Legality Of Securities See Attorney's Opinion. Legal Name of a Woman. See Woman's Signature. Legal Opinion See Attorney's Opinion. Legals Meaning the same as Legal Tenders. In some sect...
-Level Premium - Limping Standard
Level Premium A premium determined at the time of taking out a life insurance policy, by which the rate of premium is fixed at the same amount per annum, based upon the age of the insured. Liabiliti...
-Line - Live Assets
Line He carries a good line of-- stock; line here meaning special kind. Line is also used to denote a certain amount of securities carried more or less continually as a line of 10,000 shares...
-Load Up - London Money
Load Up To purchase a great deal of anything. You load up with a certain stock when you buy nearly or fully up to your capacity. He is loaded. This may mean the same as the last or may mean that he...
-London Settlement - Loss
London Settlement See Fortnightly Settling-days. Long To be long of a security means to own more than you have contracts to deliver. If a person owns 100 shares of Union Pacific stock more tha...
-Lottery Bonds - Marked Check
Lottery Bonds Bonds which may be drawn by lot at some date earlier than the actual maturity specified in the face of the security, or such securities as referred to in Premium Bonds might be consid...
-Market - Mark Signature
Market In general the meaning is the predominating feeling as to values. We say the market is high or low, by which we mean the price, or rate of, purchase. When, however, we use the expression, sel...
-Matched Orders - Middleman
Matched Orders These are used to manipulate the market as by giving orders to buy and to sell the same stock at the same price an artificial activity is given, and likewise changes in prices effect...
-Middle Price - Mint Remedy
Middle Price This is used in Great Britain, and will be understood by reading jobber, as it is the price half way between the buying and selling prices which he makes on a security. (See London S...
-Mississippi Scheme (Or Company) - Moratorium
Mississippi Scheme (Or Company) See Law, John. Money Circulation See Circulation Per Capita in the United States. Money Market By this is understood not only the interest and discount rate...
-Morgan Interests - Narrow Market
Morgan Interests Certain corporations partially controlled by or affiliated with the firm of J. P. Morgan & Co., consisting in part of the Reading, the Central Railway of New Jersey, Atlantic Coast L...
-National Bank Call - National Weather Bulletin
National Bank Call Every national bank is required to render a report of its financial condition to the Comptroller of the Currency at least five times a year. The Comptroller issues calls for th...
-Negotiable Instrument - Net Earnings
Negotiable Instrument See Negotiable. Negotiable Paper See Negotiable. Negotiable Securities First read Negotiable, after an understanding of which negotiable securities may be defined...
-Net Income - New York Consolidated Stock Exchange
Net Income After all costs of operating and fixed charges of every kind have been deducted from the earnings of a corporation, the balance, which is the amount available for dividends, may be called ...
-New York Cotton Exchange - No Account
New York Cotton Exchange Where speculation or trading in cotton goes on in New York. This exchange was founded in 1870 and the largest of its kind in this country. New York Exchange Was Par At Chic...
-No Funds - Note Panic
No Funds When stamped upon a check returned from the bank at which it is payable it indicates that the drawer ' had no money to his credit to meet its payment. The letters N. F. are often used to i...
-Notes Payable - O
Notes Payable All written agreements in every form which a person has entered into, and which are held by others, and which bind such a person to pay sums of money at some future time - either on dem...
-Oats - Offset
Oats This is explained under Grain, which, in a general way, covers this subject. Obligations This is a French term for bonds. Oats Pit See Pit. Ob The ticker abbreviation for openin...
-Old Lady Of Threadneedle Street - Operating Companies
Old Lady Of Threadneedle Street Bank of England. Old Line Insurance Life insurance upon which the premium is fixed (see Level Premium ); not changing from year to year, but determined once for a...
-Operating Expenses - Options
Operating Expenses The cost incurred in operating every corporation or industry for any given period of time. It is sometimes not customary to include taxes, insurance, etc., as an operating charge, ...
-Orders - Overcapitalized
Orders County, city, State, etc. (See Warrant.) Any written instructions to pay money, as checks, bills of exchange, etc. An order to buy or sell is given a broker. (See also the followin...
-Over-Certification - Pacifies
Over-Certification (See Certified Check,) Certifying a check to an amount greater than the deposit standing to the credit of the party drawing the check. This is prohibited by law, but very largely...
-Pan Handle - Participating Policy
Pan Handle Pittsburgh, Cincinnati, Chicago & St. Louis Railway Company. Controlled by the Pennsylvania Railroad Company. Paper See Business Paper. Paper Profits Profits supposed to exist, but ...
-Parting - Pay-Day
Parting The separation from bullion of any silver which it may contain, so that the gold and silver may be obtained in the form of separate bars. Partnership See Firm. Partnership Agreement See...
-Payee - Per Pro (Or Per Procuration)
Payee The person (firm or corporation) to whom a note, draft, etc., is made payable. In the case of a note, the payee is the one to whom the promise to pay is made. (See Draft.) Payer The per...
-Personal Check - Pinched Out
Personal Check A check drawn by a depositor, as distinguished from a check drawn by a bank. Sometimes used to indicate a check drawn against a country bank. Personal Property All movable propert...
-Pine Tree Money - Point
Pine Tree Money During the last half of the 17th century silver coins of the denomination of a shilling and under were coined in Massachusetts, having upon their face a device of a pine tree. At firs...
-Pointer - Pound
Pointer In financial slang, this means the same as a tip. (See that subject.) Post In most stock exchanges there are set aside certain places (posts set on the floor) where some of the most activ...
-Pound Sterling - Present Standard Of Weight And Fineness
Pound Sterling See Pound. . Power Of Sale A clause inserted in a mortgage note or in any other form of indebtedness which gives the lender the right to sell the property securing the debt, if not...
-Price - Prior Lien Bonds
Price 1 The money equivalent or value of anything. Prices The financial writer, in order to avoid reiteration in referring to the advance or fall of prices, uses a countless number of words to deno...
-Prior Redemption - Profit And Loss
Prior Redemption See Called Bonds. Private Bankers Those receiving deposits and carrying on the general business of banking, but not incorporated, and so not under State or Government control, a...
-Promissory Note - Purchased Line (Or Lines) Mortgage
Promissory Note A written promise on the part of one person to pay another or order a stated sum of money at some future time. (See Note.) Prompt Shipment A Chicago Board of Trade term calling f...
-Purchased Paper - Quarterly Disbursements
Purchased Paper As denned by the Federal Reserve Act paper (see 'business Paper') bought through brokers or others with whom the purchasing bank has no direct business relations. Purchase Money Bo...
-Quarterly Interest - Quotations
Quarterly Interest Interest payable four times a year. If interest on a bond is payable January 1st, the three next corresponding quarterly periods would be April, July, and October 1st. The interest...
-Ragged Bond - Re
Ragged Bond When unmatured coupons have been cut from a bond and attached to it again by a pin, or some such method, the security is termed a ragged bond. Rag Money Paper money. Raid A sudden...
-Reading - Realize
Reading Reading Co. (Railroad and Coal.) Readjustment By reading the subject Reorganization it will be seen that that refers to a rearrangement of the capitalization of a company which had been...
-Real Money - Recovery
Real Money Financiers use this term to designate metallic money - gold or silver, according to the standard of the particular country - from, usually, paper money, which is called representative...
-Red - Registered Coupon Bond
Red In the Red. (See Profit and Loss.) Redeemable Same as callable. Redemption Agent Same as clearing-house agent. Redemption Bonds Issued to redeem - pay off - other bonds which ar...
-Registered Letters (And Parcels) - Release Of Mortgage
Registered Letters (And Parcels) Inasmuch as the shipment of coupons, investment securities, or other valuable papers is a very common factor, it seems desirable that no mistake should be made in the...
-Remainder-Man - Reserve Agent
Remainder-Man The one to whom an estate goes after a certain estate is determined. Re-margin. To give more margin. (See that subject.) Remedy Allowance This is a variation allowed to the English...
-Reserve Bank - Ribs
Reserve Bank Same as Federal Reserve Bank. Reserve Banks Banks and trust companies belonging to the Federal Reserve System located in reserve cities and central reserve cities ; also Fed...
-Rigged - Rupee Paper
Rigged A term which has about the same meaning as manipulated. When the stock market has been rigged it is understood that events have been made to transpire in accordance with the wishes of thos...
-Rutland - Savings Bank Bonds
Rutland Rutland Railroad Company. 1 This exchange ceased to exist Feb. 1, 1907, as the Philadelphia Clear-ing-house Association decided to abolish it and consolidate the two exchanges into one dai...
-Savings Institution - Scrip
Savings Institution See Savings Bank. Sb The ticker abbreviation for small bonds. Sc The ticker abbreviation for scrip. . Scaled. When a corporation or municipality is unable to...
-Scrip Dividend - Securities
Scrip Dividend Sometimes corporations wish to declare a dividend in some other form than cash, or declare what is known as a stock dividend, and, to that end, may issue what substantially amount to...
-Securities Companies - Set Of Exchange
Securities Companies These are holding companies (to which refer), corporations formed to hold the snares of other companies. The shareholders of the securities com-panies own through this med...
-Settlement-Day - Shares
Settlement-Day See Account-day. Settling Price This amounts to the same thing as the delivery price as described under Stock Exchange Clearing-house. Seven Day Bills In the Bank of Englan...
-Sheared - Shorter's Court
Sheared See Fleece, meaning the same. Shekel The shekel of the ancient Jews signified a weight. In those days money had no regular shape, and was without marks or devices. Thus precious meta...
-Short Exchange - Simple Interest
Short Exchange A bill of exchange running for not more than thirty days; also called short-dated exchange, short bill, and short-dated bill. Short Interest (See Selling Short.) This term ...
-Single Entry Bookkeeping - Six-Pence
Single Entry Bookkeeping Single entry bookkeeping, as its name signifies, is a method by which only one entry is made, as distinguished from double entry bookkeeping. Single entry differs fro...
-Sixties - Soft Coalers
Sixties See next subject. Sixty Day Bill A bill of exchange (see Exchange) may be drawn payable in sixty days after date, but it is more customary to draw them payable sixty days after sight; ...
-Soft Money - Special Deposit
Soft Money Paper money; a term used to distinguish it from metallic money. Soft Spot in the Market. When one or more securities show a weakness in price; a tendency to decline, but which condition d...
-Special Depository - Specialties
Special Depository This will be understood by reading United States Depository. Special Indorsement One which specifies the person or to the order of whom payment shall thereafter be made, and wh...
-Specie - Spot
Specie There seem to be several different uses for this word. As understood by the United States Mint, it means coin of any denomination and of any metal in contradistinction to notes and bills. In t...
-Spot Cash - Stale Check
Spot Cash Immediate cash; cash at once; cash on the spot. Spot Grain Grain for immediate delivery. Spotted The market was spotted; meaning that prices were advancing at times, and declining at ...
-Stamped Security - Standard Silver Dollars
Stamped Security Any stock, bond, or other security, which, since its original time of issue, has been stamped showing some new condition or privilege by which it is bound, or to which it is entitled...
-Standard Stocks (Or Standard Investments) - Stock
Standard Stocks (Or Standard Investments) Well known securities, of established reputation, in which confidence is felt as to the future payment of interest or dividends, and of the principal, if red...
-Stock Bills - Stock Trust Certificates
Stock Bills Bills of exchange (see Exchange) drawn against a shipment of investment securities; stocks. Stock Certificate The ownership of stock (read last paragraph) is represented by a printe...
-Stock Watering - Street Improvement Bonds
Stock Watering See Watered Stock. Stock Yards Chicago Junction Railways & Union Stock Yards Co. Stop Order See Stop Loss Orders. Straddle First understand the two subjects, Call - second...
-Street Railway Securities - Sub-Company
Street Railway Securities See Electric Railway Securities. Stricken from (the) List. (First read Listed.) Any security which has previously been listed on a stock exchange, but which, for any ...
-Subscriber - Surplus
Subscriber One who signs a subscription blank; (see Subscription Blank ) or one who signs an agreement to purchase a security. Subscription Blank A printed form, which often accompanies a prosp...
-Surplus Reserve - Syndicate
Surplus Reserve Cash - i. e. lawful money - held by national banks in excess of the reserve requirements. (See Reserve.) Surrender Value The surrender value of an insurance policy is what ...
-Syndicate Agreement - Tax Exempt
Syndicate Agreement See Syndicate. S. & M. September and March; interest or dividend payments semi-annually, beginning with September. T The ticker abbreviation for tenninal. Tael The ...
-Tax Relief Bond - The Papers
Tax Relief Bond Bonds issued in anticipation of payment of taxes; that is, a municipality needs money for some purpose immediately, the expenses of which would ordinarily be taken care of by taxation...
-Third Consolidated Mortgage - Three I's
Third Consolidated Mortgage A very uncommon issue, but a reading of Second Consolidated Mortgage will naturally make this subject understood. Third Mortgage Bond A bond secured by a mortgage upo...
-Three Pence - Time Draft
Three Pence A silver coin of Great Britain, equal in value to about six cents United States money. Three Sixty-fives. Bonds bearing interest at the rate of 3.65% per annum. This peculiar rate result...
-Time Loan - Ton Mile
Time Loan A form of borrowing where the agreement between the borrower and the lender sets a definite time at which the loan shall be paid, and by which the right does not exist on the part of either...
-Ton Mile Cost - Trade Discount
Ton Mile Cost The cost of carrying one ton of freight one mile. This cost cannot be accurately ascertained. It is merely a rough approximation used by railroads for comparative statistical purposes. ...
-Trade Dollars - Transit Stocks And Bonds
Trade Dollars Authorized by the Act of February 12, 1873, containing 420 grains troy; intended for circulation in oriental countries as a substitute for the Mexican dollar; slightly exceeding the sam...
-Transmission Company Securities - True Discount
Transmission Company Securities See Power Company Bonds. Transmission Of Money See Shipment of Money. Traveller's Checks See International Checks. Traveller's Letter of Credit. See Le...
-Trunk Lines - Turned Down
Trunk Lines As commonly understood, the lines of railway connecting the Atlantic Seaboard and the Central West. 1 See The Coinage Act, 1870, 33 Victoria, Chapter 10. Trust Certificates See St...
-Two Pence - Uneven Market
Two Pence A silver coin of Great Britain, equal in value to about four cents United States money. Tx Taxes. U. G. I The United Gas Improvement Co. U. K The United Kingdom, i. e. Great Britain a...
-Unfunded - Unit Of Value
Unfunded Indebtedness not funded; floating debt. Unified (Or Unified Mortgage) See Unification. Union Pacific Interests By its Annual Report, for the year ending June 30th, 1916, Union Pacif...
-Unload - Valued Policy
Unload To sell, dispose of, get rid of. A finer meaning is to dispose of certain securities in season to prevent disaster; i.e. to sell an undesirable stock before it declines, in which event, it is ...
-Vanderbilt Interests - Waive Protest
Vanderbilt Interests Those railway companies in which the well-known Vanderbilt family in New York, and other persons associated with them, own either direct control, or control through other compani...
-Wall Street - Westralians
Wall Street 1 Financial New York; meaning not only all that section where matters of finance are transacted (not literally Wall Street itself), but also the men engaged in the management of such matt...
-Wheat - Will
Wheat The usual trading unit is in contract lots of 5,000 bushels. The commission charges of the Chicago Board of Trade for the purchase, or for the sale, or for the purchase and sale, are at the rat...
-Window Dressing - Yen
Window Dressing Fixing the accounts of a corporation so that they will look well in a public statement. In New York, the trust companies are compelled to make exhibits to the State authorities at sta...
-Yield - Assay Office Check
Yield See Net Return upon the Investment. Acceptance As defined by the Federal Reserve Act, a draft or bill of exchange drawn to order, having a definite maturity, and payable in dollars, in th...
-Attach - Bearer Securities
Attach When property is taken or held by process of law in order to satisfy a claim, it is said to have been attached. Attest. To sign as a witness. Average Maturity See last part of Net Return...
-Bearer Shares - Commodity Paper
Bearer Shares See Bearer Securities. Berthas (See Brightons.) The deferred ordinary stock of that company. Berwicks Used in London to designate the North Eastern Rwy. Consolidated. Big Board...
-Construction Mortgage - Counter Check
Construction Mortgage Same as Building Mortgage. (See Mechanic's Lien.) Continue (First read Fortnightly Selling-days and Contango.) When a bargain is carried over until the next settleme...
-Cover - Cuttings
Cover The London equivalent of the American term margin. Crossed Order See Gross Trade. Cumulative Ordinary Shares (To understand such an issue one must first read Cumulative.) The Americ...
-Dealer - Difference
Dealer For the London use see Jobber. Defaulter A member of the London Stock Exchange who is unable to fulfil his engagements is termed a defaulter and the Rules provide that he shall be public...
-Discount Bank - Exempt
Discount Bank See Bank of Discount. Districts A London term for the ordinary stock of the Metropolitan District Rwy. Ditch Bonds In the middle and far western States, bonds are issued to procur...
-Export Bar - Federal Reserve Board
Export Bar See International Movement of Gold. False Prospectus Acts The State of New York has passed an Act, popularly known as the False Prospectus Act, which prohibits the making or publish...
-Federal Reserve District - Forward Prices
Federal Reserve District The Federal Reserve Act (see end of book) provided for the selection of not less than eight nor more than twelve cities, to be known as Federal Reserve Cities ; for the d...
-Give On - Inflation
Give On See Continue - meaning the same. Givers (First read Contango.) Those - i. e. the bulls - who do not wish to pay for and accept delivery of stocks bought, and thus are willing to give ...
-Inland Bills - Lombarding
Inland Bills Drafts drawn against other points in the same State. Installment Bonds See last paragraph of Serial Bonds. Interim Dividend. A dividend paid in anticipation of the final dividend of ...
-Lombards - Net Time Deposits
Lombards A London term for the ordinary stock of the Lombardo Venetian Rwy. Lumber Paper Short time notes for the payment of which lumber is pledged, or the plain notes of dealers in lumber whose c...
-Nipper - Prior Lien And Participating Stock
Nipper Used to designate the Northern Pacific Rwy. Nominal Debenture A debenture (see that subject) in which the payee is named. More commonly used in England. Nominal Stock Certificate When, i...
-Protective Committee - Registered Terminal Receipt
Protective Committee When an enterprise becomes a losing one, and bankruptcy or reorganization is inevitable, security holders are often invited to place their interests in the control of several men...
-Registration Tax - Shunting
Registration Tax See Secured Debt Tax. Regular Lot The regular unit of transaction upon the Stock Exchange. This will be readily understood by reading the subject Fractional Lots. Rehabilita...
-Sld - Takers-In
Sld These letters printed in connection with the report of a Stock Exchange sale upon the tape are explained under the rulings of the New York Stock Exchange, as follows: When a sale is not recorde...
-Temporary Certificates - Westerns
Temporary Certificates Same as Temporary Receipts. Terminal Receipt Same as Warehouse Receipt. (See that subject.) Time Bargains (First understand For the Account.) Transactions for periods...
-White Money - Government Deposits
White Money Silver coins. Wire-Tapper One who dishonestly and secretly connects a telegraph or telephone instrument with a public or private line for the purpose of stealing news or information of ...









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