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 selling prices being his principal profit. He also gains or loses on the interest which the investments pay him while under his ownership in accordance with the prevailing rates for money, for he customarily is a large borrower, using his securities as "collateral."
¹ "The Accountancy of Investment," Charles E. Sprague.
See " Savings Bank."
See " Bankrupt."
I. 0. U. These letters stand for "I owe you," and, as generally used, are merely an acknowledgment of debt in the form of a memorandum, as: "I. O. U. $10," followed by the signature of the person giving it. When it contains a formal promise to pay upon a specified time it becomes a "promissory note."
Iowa Central Railway Co.
In Great Britain, for example, there have been issued many railroad company " debentures " (see " Debenture Bond ") which have no fixed dates of maturity, as in the case of our bond issues, but which are irredeemable; perpetual; more like a preferred stock.
The English railroads labour under this disadvantage: many of these " irredeemable debentures " bear a high rate of interest, which is a perpetual charge upon the companies.
1 Decrease due to business depression of 1907-08. The first 6 months of 1909 showed a production of 11,022,346 tons.
It would be of great advantage to them if, in times when low interest rates were prevailing, these issues might be converted or "refunded," as we say, into lower interest-bearing securities, and thus an interest saving for all time to come be accomplished. The irredeemable feature prevents this, however.
See "Inconvertible Paper Money."
Many variations in prices; some securities advancing, others declining.