11. A merchant imported 40 rolls carpet, 160 yd. each, and paid $1024 duty at 20% : at what price per yard was the carpet invoiced? Ans. 80 cents.

SECTION VIII.

CAPITAL AND STOCK.

207. A Company is a number of individuals associated to transact business.

208. A Corporation is an association of individuals authorized by law to transact business as one person.

209. A Charter is the legal act of incorporation defining the powers and obligations of the corporation.

210. The Capital Stock of a corporation is the money employed to carry on the business of the company.

211. A Certificate of Stock is a paper showing the number of shares of stock to which one is entitled in the corporation.

212. A Share is one of the equal parts into which the stock is divided. The value of a share varies in different corporations. In railway and similar companies it is usually $100.

213. The Par Value is the sum for which the certificate was issued.

214. The Market Value is the sum for which it can be sold.

215. Stock is said to be above par or at a premium when it will sell at more than its face or par value, and below par or at a discount when it sells for less than its face value. When shares sell at their face value, the stock is said to be at par.

216. Instalments are portions of the capital stock subscribed by each stockholder, and are paid at different times as demanded by the company.

217. The Gross Earnings of a corporation are the total receipts from the regular business of the company.

218. The Net Earnings are the receipts after the entire expenses of the company are deducted.

219. Dividends are certain portions of the net earnings distributed among the stockholders according to the amount of stock owned by each.

220. Assessments are sums required of the stockholders, according to the amount of stock held by each, to meet losses or expenses of the company.

221. Dealing in stocks is called stock-jobbing, and the persons engaged in the business are called stock-jobbers or stock-brokers.

CASE I.

To find the Total Cost, the Value of a Share and the Number of Shares being given.

ORAL EXERCISE.

NOTE.-When the par value of shares is not mentioned, it is understood to be $100.

1. When stock is at 5% premium, what is the market value of $1 in stock? Of $20? Of $100?

2. When stock is at 10% discount, what is the value of $1 in stock? Of $50? Of $100? Of $125?

3. What cost 20 shares of railroad stock at 15% premium? 4. What is the cost of 40 shares of railroad stock at 20% discount?

WRITTEN PROBLEMS.

1. What is the cost of 45 shares of bank stock at 58% premium, brokerage %?

SOLUTION.-100% +5% +1% = 1051%

105$100 $105.50

45 $105.50 $4747.50

2. What cost 62 shares Erie Railroad stock at 27% dis

count, brokerage %?

Ans. $4533.75.

3. What is the cost of 65 shares Erie Railroad stock when

quoted at 854, brokerage %?

Ans. $55493.

4, Find the cost of 75 shares bank stock when the market value is 1034, brokerage %? Ans. $7790.

5. Bought railroad stock at 634, and sold at 75, brokerage 1% each way: what did I make on 100 shares? Ans. $1150.

CASE II,

To find the Number of Shares, the Loss or Gain and the Loss or Gain per cent. being given.

ORAL EXERCISE.

1. I bought mining stock at 80, and selling at 65 I lost $3000: how many shares did I buy?

SOLUTION.—If I bought stock at 80 and sold at 65, I lost the difference, or $15 a share, which is 15% of the par value. $3000 is 15% of $20000, which is the value of as many shares as $100 is contained times in $20000, or 200 shares.

2. Bought canal stock at par and sold at 60%, thereby losing $200 how many shares did I buy?

3. Bought telegraph stock at 95 and sold at 103, thereby making $400: how many shares did I buy?

4. Bought railroad stock at 115, but sold at 80, and lost $7000: how many shares were bought?

WRITTEN PROBLEMS.

1. If I bought stock at par and sold at 1074, thereby gaining $1740, how many shares did I buy?

Ans. 240.

2. Bought stock at par and sold at 76, thereby losing $3720: how many shares were there?

3. Bought bank stock at 964 and sold at gaining $3556: how many shares were there?

CASE III.

Ans. 160.

112, thereby Ans. 224.

To find the Amount of Dividend or Assessment, the Rate and the Number of Shares being given.

ORAL EXERCISE.

1. A bank declares a dividend of 51% what is that man's share who owns 20 shares of stock?

SOLUTION. Since the dividend is 51%, it is $5 on the $100, or $5 on a share; on 20 shares it is therefore 20 times $51, or $110.

2. If a bank declare a dividend of 41%, what is that man's dividend who holds 60 shares of stock?

3. A railway company declares a semi-annual dividend of 31% what is that man's annual dividend who owns 24 shares of stock?

4. An insurance company meeting with a heavy loss by fire levies an assessment of 15%: what is that man's assessment who holds $2500 worth of stock?

WRITTEN PROBLEMS.

1. A capitalist holds 650 shares of stock in a corporation that declares a dividend of 63% : what is his share?

Ans. $4387.50.

2. A banking company declares a dividend of 12% what is that man's share of the dividend who owns 250 shares of stock? Ans. $3187.50.

3. When certain railroad stock was selling at 115 a capitalist invested $11040. The company afterward declared a dividend of 9% what was his share of the dividend?

Ans. $864.

4. When telegraph stock was selling at 72 I invested $12731.25. The company declared a quarterly dividend of 21% what was my annual dividend at this rate, and what per cent. did I make on my investment?

Ans. Div., $1750; profit, 137%.

CASE IV.

To find the Amount of Stock, the Dividend and the Rate per cent. being given.

ORAL EXERCISE.

1. A bank declares a dividend of 5% how much stock do

I own if I receive $300 as my dividend?

$300 is 5%, or 2%, of my stock. If $300 is the value of my stock, 20, or the value, is 20 times $300, or $6000.

2. If a stockholder in a bank receive $240 as his share of a 6% dividend, how much stock does he own?

3. If a banking company declare a dividend of 15%, how much stock does that man own whose dividend is $375?

4. Mrs. B received $450 as her share of a semi-annual dividend of 3% on certain railroad stocks: how much did she own?

WRITTEN PROBLEMS.

how much stock

5. A manufacturing company, wishing to make some improvements, made an assessment of 13% does A own, whose assessment is $428 ? Ans. $3200. 6. A gentleman receives $700 as his share of a 121% dividend: how many shares of stock does he own if the shares are worth $50 each?

Ans. 112.

7. Bought some railroad stock at 73, then received $945 as a dividend at 24%, when I sold my stock at 861: how much stock had I, and what did I make?

Ans. 420 shares; made $6510. 8. A capitalist bought stock at 65, and after receiving a dividend of 5% sold it at 82, and made $1125: how much stock had he, and what per cent. did he realize?

Ans. 50 shares; realized 22%.

CASE V.

To find the Rate per cent., the Amount of Stock and the Dividend being given.

ORAL EXERCISE.

1. If the stock of a company is $20000, what rate of dividend can be declared if the earnings are $4000?

SOLUTION 1.-If $20000 gain $4000, $1 will gain zoo of $4000, or 20000, or 20%.

4000 =

SOLUTION 2.-As many per cent. dividend can be declared as 4000 is per cent. of 20000; 4000 is 20% of 20000; hence, 20% dividend can be declared.

2. If $200 worth of stock gain $9, what rate of dividend can be declared?

3. If $5000 worth of stock gain $150, what rate of dividend can be declared?

4. A gentleman owning 20 shares of bank stock was paid an annual dividend of $160: what was the rate?