When a member of the London Stock Exchange has executed an order for his client, the latter receives notice from his "broker" that the order has been executed by the latter's sending him what is termed a "contract note." It is dated as of the day of the transaction, gives the name and the address of the "broker," amount of the security traded in, the price, commission, registration fee and Government stamp duties on the note and "transfer deed" - if the latter is required. Besides all this, words to the effect that the transaction is subject to all the conditions, customs, etc., of the stock exchange are included, and the date is entered as to when the amount becomes payable.
After the member's signature must follow: "Member of The Stock Exchange, London."
(First read "Convertible Bonds.") If one security is convertible at par into another at 200, they are upon a "conversion parity," or equality, when selling at those respective prices. If the former is quoted at 50 and the latter at 100, they would still be upon a "conversion parity." This example, however, does not take any account of accumulated dividend or interest upon the securities, which, to get actual "conversion parity" must be considered.
Principally used to designate the long term indebtedness of the City of New York, as opposed to the short term obligations which are usually denoted "Revenue Bonds " (see that subject), running two or three years or less, and "Assessment Bonds," maturing in about ten years from date of issue.
In America, this is the ordinary term for the stock of an incorporated company, but with some exceptions. A few of our cities, such as New York and Baltimore, designate certain of their bond issues as "corporation stock." In Great Britain, they refer to their municipal bond issues in the same manner.
St. Louis Southwestern Rwy. Co.
Used in London to designate the ordinary shares of the English Sewing Cotton Co.
Issued by a bank for the convenience of a depositor having a check account therein, by which he can withdraw cash when his own check-book is not at hand. A check of this kind is for use within the bank only - that is, for the purpose of drawing cash by the depositor only - and not for the payment of bills or other obligations. The common wording of such a check is, in part:
Pay to....................myself Only..............