4. A real estate agent sold a farm of 80 acres, at $120 per acre; what was his commission, at %?

5. An attorney received $82.01 for collecting $1640.20; what rate % did he charge?

6. A broker received $11 for buying a note of $4400; what was the rate %?

7. An auctioneer received $112.50 for selling a house, his commission being 21%; for what did the house sell, and what were the net proceeds?

8. A tax collector, after deducting 5% commission, paid into the treasury $23750; what was the whole amount collected, and what was his percentage?

9. A merchant sent his agent $6060, which he invested in wool, at 50 cents per pound, first deducting 1% commission; how much wool did he buy?

ANALYSIS.—The agent cannot charge a commission on his own pay; the $6060 therefore, includes the amount invested in wool, and the agent's commission on that amount, consequently 100% or the amount invested +1% commission : = 101% which

=

$6060.

10. I send my agent in Cincinnati a consignment of boots and shoes, which he sells for $1850, at a commission of 21%. He invests the net proceeds in sole leather, at 40 cents per lb., after deducting a commission of 1% for buying; how much leather do I receive?

11. My agent in Baltimore sells my consignment of 640 barrels of flour, at $6.25 per bbl. He deducts his commission of 2%, and invests the net proceeds in corn, at 80 cents per bu., charging no commission thereon; how much corn do I receive?

12. A broker receives $3015 with instructions to invest in bank stock, after deducting his brokerage of %; what amount does he invest, and what is his brokerage?

STOCKS AND BONDS.

A Corporation is an association of persons authorized by law to transact business as a single individual.

Stock is the funds or capital of a corporation, and is named according to the character of the corporation; as, Bank Stock, Oil Stock, Railroad Stock, etc.

Shares are the equal parts into which a stock is divided, and persons who own shares of stock are called Stockholders.

The amount specified on a share of stock is called its Face, Nominal, or Par Value.

The Market Value of stock is what it will sell for.

Stocks are at par when they sell for their face value; above par or at a Premium, when they sell for more; and below par or at a Discount, when they sell for less than their face value.

In issuing shares of stock, payment in full is not always required at once, but a certain percentage is demanded from time to time. This percentage is called an Install

ment.

The Gross Earnings of a company or corporation are its entire receipts; the Net Earnings are what remains after the expenses are deducted.

A Dividend is a sum paid to stockholders out of the net earnings of a corporation.

An Assessment is a sum which stockholders are required to pay, to make up losses in the business of a corporation.

Note.-Dividends are usually made annually, semi-annually, or quarterly; and both dividends and assessments are generally a certain percentage of the face of the stock.

Bonds are written obligations, intended to secure the payment of borrowed money at a specified time.

Note.-When a corporation wishes to increase its capital by borrowing, or a government desires to raise money in the same manner, it issues bonds to secure payment to the lender. These bonds vary in amount, and are bought and sold like ordinary stocks, from which they differ in bearing interest.

Bonds receive different names according to their character; thus, U. S. or Government Bonds are issued by the U. S. Government, State Bonds by a State, and City, County, District, or Corporation Bonds, by a City, County, District, or Corporation, respectively.

U.S. Bonds are of several classes, bearing different rates of interest, and payable at different dates.

The following are the principal U. S. Bonds:

6% BONDS.

6's of 1881, payable in 1881.

5-20's, redeemable in 5 years, and payable in 20 years from their date of issue.

5% BONDS.

10-40's, redeemable in 10 years, and payable in 40 years from their date of issue.

5's of 1881 (new), redeemable after 1881.

41% BONDS.

41's of 1886 (new), redeemable after 1886.

4% BONDS.

4's of 1901 (new), redeemable after 1901.

The interest on the above bonds is payable in gold, semi-annually for the 5-20's and 10-40's, and quarterly for the 5's of 1881, 44's of 1886, and 4's of 1901.

A Coupon is a certificate of interest attached to a bond. It is detached and presented for payment when the interest is due.

State, city, corporation, and other bonds are made payable at a specified time, and bear various rates of interest. They are named according to the parties by whom they are issued, and their rate of interest; thus, City 6's, Georgia 7's, etc.

Note.-Reference is here made to interest in connection with bonds. This will be more fully treated hereafter, the following examples referring only to the buying and selling of bonds as stock.

ORAL EXERCISES.

1. If I buy stock at $95 per share, whose par value is $100, is it at a premium or a discount, and what %?

2. A stock whose par value is $50 sells at $60; is it at a premium or a discount, and what %?

3. When a stock is quoted at 8% premium, what is the market value of a share whose face is $100?

4. When a stock is quoted at 10% discount, what is the market value of a share whose par is $50?

5. What will a hundred-dollar government bond cost me, at a premium of 12%?

6. A bank declares a dividend of 3%; what will the stockholder receive who owns 5 shares, par value $100? 7. A man buys stock at 80, and sells at 90; what % does he gain on his investment?

ANALYSIS.-If a man buys at 80, and sells at 90, he gains 10 on an investment of 80. 10 is of 80. .121, or 121%.

=

8. If I buy at 90, and sell at 120, what % do I gain? 9. When a bank stock, par $100, is quoted at 25% premium, how many shares can I buy for $500?

WRITTEN EXERCISES.

1. I have 80 shares of bank stock, par value $100, which pays a quarterly dividend of 21%; what is my annual income from the stock?

Note. When the par value of shares is not given, it is understood to be $100.

2. I buy three U. S. 5-20 bonds of $500 each, at a premium of 121%; what do I pay for them?

3. I buy railroad stock, at $42 per share, and sell it at $28; what% do I lose on my investment, and at what % discount does the stock sell, par value being $50?

4. The net earnings of a street car company are $10000; it has issued 1200 shares of stock, par value $50; what % of dividend does it pay, and how much money does A receive, who owns 75 shares?

5. I wish to invest $6630 in city 6's, at 101% premium; how many $1000 bonds can I buy for that money?

6. The market value of a certain oil stock is 28, nominal value 50; at what % discount is it?

7. What is the discount on $8000 Missouri 6's, selling at 92? What is the market value?

8. I paid $960 premium on 120 shares of canal stock; what was the % of premium?

9. A manufacturing company lost $30000 by fire; what rate of assessment must each stockholder pay, in order to make good the loss, the number of shares being 1500?

10. My broker buys me 40 shares of Pennsylvania R. R. stock, at 46, par value $50, brokerage %; what does it cost me?

Note.-Brokerage is charged on the face value.