changed to francs by multiplying it by the quotation given; to guilders by dividing by the quotation; to marks by dividing by the quotation and multiplying the quotient by 4.

EXAMPLES.

Find the face of a bill of exchange that cost

9. $1728.25, if bought through a broker at 4.831, brokerage %.

10. $5630.18, if bought through a broker at 5.20, brokerage 1%.

11. $6311.40, if bought through a broker at 40ğ, brokerage 1%.

12. $965.37, if bought through a broker at 93, brokerage 16%.

13. I bought through a broker a bill of exchange on Manchester and paid $4923.78. Exchange was selling at 4.833, and the broker charged %. What was the face of the bill?

14. A broker sold for me a bill on Bristol at 4.85 and charged % brokerage. What was the face of the bill if the net proceeds were $3940.82?

15. I bought of an exchange banker a 60-day bill on Bordeaux and paid $2716.87. What was the face of the bill, exchange being at 5.191?

16. What is the face of a bill on Amsterdam, bought for $5721.10, exchange at 413 and brokerage %?

17. A bill of exchange on Munich sold for $1127.45 when exchange was at 93. What was the face, brokerage %?

18. N.Y.C. R.R. stock is quoted in London at 115 What is the equivalent N.Y. quotation, the course of exchange being 4.89?

NOTE. The London price is made at $5 to the £.

19. St. Paul R.R. stock is quoted in N.Y. at 86. Find the London quotation, if exchange is at 4.86.

20. A draft on Paris for 8572.72 fr. cost $1650.66, including 1% brokerage. Find the quotation of exchange.

21. On the letter of credit, page 142, the following payments are recorded on the back: June 25, 1904, £100; July 18, £200; Aug. 16, £100; Sept. 19, £200; Nov. 20, £200; Jan. 6, 1905, £100; Feb. 14, £100; April 4, £100; June 10, £100; July 20, £100. At $4.85 to the pound, how much did the bank pay on the letter?

22. If, in each of the following columns, the terms marked are given, how may the term marked ? be found?

STOCKS AND BONDS.

192. A CORPORATION is an association of persons authorized by law to transact business as one person.

NOTE.

- The right to do business in this manner is obtained by special act of Legislature, and this act is called the CHARTER.

193. The CAPITAL STOCK is a certain valuation taken by the corporation as a basis of business, and represents the worth of the corporation's property.

NOTE 1. The Capital Stock is divided into shares usually of $100 each. Shares of $25 and $50 are called quarter stock and half stock, respectively. NOTE 2. A STOCK CERTIFICATE is a paper given by the company to the Stockholders, specifying the number and value of the shares which they hold.

194. The PAR VALUE of a share is the value given it by the corporation at the time of the division of the capital stock.

195. The MARKET VALUE of a share is the sum for which it will sell.

NOTE. - At the time of forming the organization, individuals subscribe for stock in such quantities as they wish and at a price dependent on the need of the company and the prospect of the business. Thus, stock may start at its par value, or at a price above or below its par value. When the stock is put upon the market, its desirability as an investment usually regulates the price at which it will sell. When stock sells for more than its par value, it is said to be above par, or at a premium; and when it sells for less than its par value, it is said to be below par or at a discount.

196. WATERING STOCK is a term applied when the corporation issues new stock to the stockholders in addition to what they then own without requiring payment for the new shares.

NOTE.

This may occur for various reasons. The ordinary objects are: To dispose of a dividend which, if all paid in cash, would be at a larger rate

than the charter specifies; and in case of consolidation of two or more corporations whose stock is selling at different quotations, in order to give to the holders of stock in the original companies an equivalent value in the stock of the new company. It is thus seen that the quantity is increased

while the value remains the same.

197. A DIVIDEND is that part of the net earnings of a corporation which is divided among the stockholders.

NOTE 1.

Dividends are paid in cash or "scrip," which entitles the holder to cash and interest.

NOTE 2. The GROSS EARNINGS is the total receipts before expenses have been paid. The NET EARNINGS is what is left of the gross earnings after payment of expenses.

198. An ASSESSMENT is a tax levied upon stockholders to make up losses, etc.

NOTE. Dividends and assessments are declared at a certain % of par value.

199. PREFERRED STOCK is that part of the stock which is entitled to a certain rate of dividend before any dividend can be declared on the common stock.

NOTE. In case of debt greater than the corporation can conveniently pay, the holders of common stock, to save the management from passing out of their hands, generally advance the money and receive in return preferred stock. The preferred stock of a company usually sells at a higher price than the common stock.

200. The BOND of a corporation is its promissory note, payable at a fixed time with a certain rate of interest which is payable at the end of certain periods.

NOTE 1.

Bonds of a business corporation are usually secured by a deed of trust and mortgage of all or part of its property; while bonds issued by our general government or any of its subdivisions are dependent for payment upon the good faith of the people.

NOTE 2.

- Bonds are generally issued to secure loans.

201. BONDS are issued in two classes, COUPON.

REGISTERED and

A REGISTERED BOND is payable to the order of the owner, and can be transferred only by acknowledged assignment, and its interest is payable by cash or check from the corporation. A COUPON BOND is one with interest certificates attached. These certificates are taken off from time to time and presented at a designated place for payment. Government coupons will be cashed by any bank in the United States.

NOTE. - Bonds are distinguished, in addition to the above names, by one or several of the following things: The nature of security, as 1st. mortgage, 2d. mortgage, etc.; the name of the corporation that issues them; the date at which they are payable or redeemable, or both; the rate of interest they bear; the purpose for which they are issued, etc. Thus, Toledo and Wabash 2d.; C. R. I. & P. 6's 1907, coupon; U. S. 4's, reg. 1907; U. S. 10-40's of 1864, 5's; continued 6's, 6's of 1881; etc.

202. Stocks and Bonds are quoted at so much per cent. of $100, taken as par value, except in the cases of mining stocks and some others not prominent in the market.

NOTE. In quoting half stock the per cent. of value of two shares is given; that is, the value of $100 worth of stock is quoted.

203, COMMISSION is allowed brokers on transfers of stock or bonds, usually at %. of par value.

EXAMPLES.

204. 1. A railroad with a capital of $2550000 declared a dividend of 51%. What was the amount of dividend paid? How much did A receive, who held 450 shares?

2. A corporation with a capital of $875400 declared a dividend of $54712.50. What was the rate of dividend?

3. The stockholders of a company having a capital stock of $350000 were assesssd 34%. What was the total assessment, and how much did A pay, who held 80 shares of $100 each?

4. A stockholder who has 125 shares is assessed $312.50. What is the rate of assessment and the assessment per share of $100?

5. A manufacturing company declared a dividend of $3600, which was at the rate of 44% on its capital stock. How many shares of $100 each in its capital?

6. What is the cost of 130 shares Bell Telephone stock at 2174, brokerage %?

7. How much must I pay for 75 shares N. Y. & N. E. com. at 50g, brokerage %?

8. Find the cost of $1000 Louisville & Evansville R. 1st 6's at 1043; $4000 Chicago, Kansas & Western 5's at 1013;