Find the proceeds of these notes:

12. $800.

RICHMOND, VA., Mar. 12, 1911. Sixty days after date, for value received, I promise to pay to the order of Brown, Davis & Co., Eight Hundred Dollars.

Discounted June 8, at 6 %.

13. $750.

JOHN A. MESSER.

ALBANY, N. Y., Nov. 19, 1911.

Ninety days after date, for value received, I promise to pay to the order of Everett B. Payson, Seven Hundred Fifty Dollars, at the Hudson National Bank. · ARTHUR M. HOYT.

Discounted Jan. 16, 1912, at 7%.

14. $1200.

SAN FRANCISCO, CALIF., June 8, 1911. Three months after date, we promise to pay to the order of James C. Ropes, Twelve Hundred Dollars at the Union National Bank.

Value received.

ROBERT L. SPENCER.

Discounted July 12, at 5%.

15. $1500.

HARRY G. DAVIS.

MONTGOMERY, ALA., Feb. 16, 1911.

Sixty days after date, we jointly and severally promise to pay to the order of The Alabama Cotton Co., Fifteen Hundred Dollars at the Sixth National Bank.

Value received.

FORREST R. DALE.

Discounted March 3, at 7 %.

CARL A. DEERING.

Find the date of maturity, term of discount, bank discount, and proceeds of the following notes:

DISCOUNTING INTEREST-BEARING NOTES

1. Find the proceeds of the following note if discounted at date:

NEW YORK, N.Y., July 19, 1911. Sixty days after date we promise to pay to the order of The Twentieth National Bank of New York, Two Thousand Dollars ($2000), at said Bank, with interest at 6%. Value received.

$2000+ $20 (int. for 60 days) = $2020, value at maturity

$2020-$20.20 (int. on $2020 for 60 days) = $1999.80, proceeds

DISCOUNTING INTEREST-BEARING NOTES 371

2. Find the proceeds of the above note if discounted Aug. 1.

3. Find the proceeds of the above note if discounted Aug. 4, the rate of discount being 5%.

4. $540.

LOUISVILLE, KY., Dec. 12, 1911. Sixty days after date I promise to pay to the order of The Planters Seed Co., Five Hundred Forty Dollars, with interest at 5%.

Value received.

Discounted Dec. 24, at 7 %.

5. $1800.

PRESTON G. LADD.

KANSAS CITY, Mo., Sept. 14, 1911.

Four months after date I promise to pay to the order of Dennison and Page, Eighteen Hundred Dollars, with interest at 6%.

Value received.

Discounted Oct. 30, at 5%.

6. $980.

HORACE P. STILES.

SEATTLE, WASH., Feb. 4, 1911..

Four months after date I promise to pay to the order of The Pacific Bank, Nine Hundred Eighty Dollars, with interest at 6%.

Value received.

Discounted at date, at 6%.

HORACE G. PETERSON.

7. How much will a bank pay on June 1 for a note for $400, dated June 1, payable in 90 days, with interest at 6%, if the rate of discount is 6%? How much if discounted July 2?

8. On April 15, 1911, Mr. R. S. Jackson buys a house from Mr. H. K. Mullins for $3600, paying down of the price, and giving his note for the balance, payable in 6 months, with interest at 5%. Mr. Mullins discounts the note at date at 6%. Write the note and show the indorsement required by the bank. Find the proceeds. How much must be paid to cancel the note when it becomes due?

Find the proceeds of the following interest-bearing

1. 12 × 9, + 2,

2. 6+12, x 3,

3. 22 x 4,

4. 21 × 12,

DICTATION EXERCISES

÷ 11, × 21, +7, ÷ 4, +9, × 2, +8. ÷ 9, × 7, -3, ÷ 3, +7, × 6, ÷ 8.

- — ×

× 9,

8, ÷ 4,

8, x 3, +9.

—– 18,

÷ 8, + 3,

× 12, + 6.

4. ÷ 7, +3, × 8, ÷ 60, × 0, +48, ÷ 4. +2, ÷ 4, × 12, −1, ÷ 5, -3, × 4, +16. 5. 11 x 12, ÷ 2, + 4, ÷ 5, +6, × 3, ÷ 6, × 7, - 30. 6. 824, x 5, +4, ÷ 7, 7. 72 — 1, ÷ 6, +7, × 6, 8. 1 of 40, +4, ÷ 6, 9.of., × 20, +4, × 9, 10. of, × 60, +6, ÷ 7,

× 9,

+ 2, ÷ 7, × 8,

+6, ÷ 2.

− 21, +12, ÷ 4,

× 9, +6, ÷ 15,

− 7, × 3.

STOCKS

Frequently several persons unite for the purpose of carrying on business, forming a stock company, and choosing a board of directors to manage its affairs. The law requires that a certificate of incorporation or charter must be secured from the state.

The capital or stock is divided into shares, usually of $100 each.

Each person interested is a stockholder and receives a stock certificate showing the number of shares he owns and the par value of a share.

The par value of a share is its face value.

A stock share can be bought and sold like any other property, and its selling price is its market value.

The market value of a share of stock is rarely its face value. If the company is well managed and pays large dividends, the shares sell for more than their face value, since people can get a larger return for their money by buying the shares at a price higher than the face value than by investing their money in other ways. In like manner, the shares of a company poorly managed and paying small or no dividends are worth less than their face value.

When stock sells above its face value, it is said to be above par, or at a premium. Thus, a share selling for 108 means that a share whose par value is $100 is worth in the market $108; that is, it is $8, or 8%, above par.

Similarly, when stock sells below its face value, it is said to be below par, or at a discount. Thus, a share selling for 95 means that a share whose par value is $100 is worth in the market $95; that is, $5, or 5 %, below par.

Profits are divided among the stockholders according to the number of shares each owns, and are called dividends.