This section is from the book "The Investor's Catechism", by Marc M. Reynolds. Also available from Amazon: The Investor's Catechism.
They are favorite expressions among Wall Street tipsters who never say "I know" that such and such a thing will happen, but preface their tips, points and advice with "I hear," "I understand," or "They say." The qualification gives them a loophole for escaping responsibility, and the air of secrecy preserved suggests that the tipster has some inside information.
The leading grain and food stuff importing countries are Great Britain, France, Germany, Italy, Holland, Belgium, Spain, Brazil, West Indies, China and Japan.
It is a revenue account, and with most corporations it includes such items as gross earnings, operating expenses, net earnings, income from other sources, fixed charges and other deductions for dividends, dividend charges and surplus.
The income basis of an investment is the percentage of return on the prevailing price. A stock paying 6% on par of 100, bought at no, yields 55-11; therefore, this stock at no is on a 5 5-11 "income basis."
A bond supposed to be a lien on the net income or earnings of a corporation after all prior charges have been paid. It receives interest only when earned, and is similar in its position to a preferred stock, except that a preferred stock usually has voting power. An "income bond" is not necessarily a mortgage, but when it is, cannot be foreclosed before maturity, provided the interest payments on earnings are complied with.
American Sugar Refining, Federal Steel, American Steel and Wire, Standard Oil, American Tobacco, National Starch, Cordage, Rubber, Linseed Oil and other similar, listed securities are known as the industrials.
One who owns the controlling interest of a stock in a railroad or industrial company and shapes the course of prices.
It is a term applied to grain, cotton and coffee, etc., available for immediate use.
In Chicago, grain shipped in is inspected and graded by sworn inspectors under the rules of the Board of Railroad and Warehouse Commissioners. If the inspections are not satisfactory, appeals may be taken to the Board of Trade's Inspection Committee.
Interest is the usury demanded for loans made. It is regulated by law in most States, but fluctuates according to the demand for money. In Wall Street financial banks, interest on call loans sometimes runs very high. Such transactions are not recognized by commercial banks and institutions, dealing with purely commercial or industrial houses or corporations.
Without or not including interest, and usually applies to bonds. Registered bonds sell "ex-interest" in the same way that stocks sell "ex-dividend" when the books are closed. In the case of coupon bonds the term "ex-coupon" is used in the same sense. In coupon bonds no books are closed. The bonds sell "ex-coupon" from the day that the coupon is paid.
The amount of interest on a bond or debenture stock which is not yet payable, but has accrued over a given period of time beyond the last regular payment. If the interest on a 4% bond is payable semi-annually, January and July 1st, the amount of accrued interest on the bond on April 1st, the first quarter, would be exactly 1%, and would amount to $10 on a $1,000 bond. Many bonds are quoted "with accrued interest" and sold on this basis, particularly unlisted issues, municipal bonds, etc. Most of the issues quoted on the stock exchanges are sold "flat;" in other words, the accrued interest is not separately figured but is included in the price.
Buying by persons who intend to hold their purchases for a long time, ordinarily purchased for the dividend returns or to secure control of a security.
 
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