ceived $7732.25 as the net proceeds; what was the rate of commission? 15. A commission merchant in Boston having received 28000 lb. of Mobile cotton, effects a sale at $.12 per pound. After deducting $35.36 for freight and cartage, $10.50 for storage, and his commission, he remits to his employer $3252.89 as the net. proceeds of the sale; at what rate did he charge commission? Ans. 5%. 16. The net proceeds of a sale were $5635, the commission was $115; what was the rate of commission? 17. An agent received $22.40 for selling grain at a commission of 4%; what amount of grain did he sell? Ans. $560. 18. My attorney, in collecting a note for me at a commission of 8%, received as his fee $6.80; what was the face of the note? 19. Sent to my agent in Boston $245, to be invested in French prints at $.15 per yard, after deducting his commission of 2 %; how many yards shall I receive? Ans. 1601.24. / 20. John Kennedy, commission merchant, sells for Ladd & Co. 860 barrels of flour @ $7.50, on a commission of 21%. He invests the proceeds in dry goods, after deducting his commission of 1% for purchasing; how many dollars' worth of goods do Ladd & Co. receive? Ans. $6195.81+. 21. A commission merchant, whose rate both for selling and investing is 5%, receives 24000 lbs. of pork, worth 6 cents, and $3000 in cash, with instructions to invest in a shipment of cotton to London. What will be his entire commission? Ans. $280. 22. A speculator received $3290 as the net proceeds of a sale, after allowing a commission of 6%; what was the vale of the property? Ans. $3500. 23. The net proceeds of a shipment of 500 tons of pressed hay, after deducting a commission of 3 %, and $500 for other charges, were $6290; what was the selling price per ton? 24. I send a quantity of dry goods into the country to be sold at auction, on commission of 9 %. What amount of goods must be sold, that my agent may buy produce with the avails, to the value of $3500, after retaining his purchase commission of 4%? NOTE 2.- $3500 plus the agent's commission equals the net proceeds of the sale. 25. Having sold a consignment of cotton on 3 % commission, I am instructed to invest the proceeds in city lots, after deducting my purchase commission of 2 %. My whole commission is $265; what is the cost of the city lots? Ans. $5141. 26. What tax must be assessed to raise $50000, the collector's commission being Ans. $50377.83+. t %? STOCKS. 463. A Company is an association of individuals for the prosecution of some industrial undertaking. Companies may be incorporated or unincorporated. 464. A Corporation is a body formed and authorized by law to act as a single person. 465. A Charter is the legal act of incorporation, and defines the powers and obligations of the incorporated body. 466. A Firm is the name under which an unincorporated company transacts business. NOTE. A private banking company, or a manufacturing or commercial firm is also called a House. 467. The Capital Stock of a corporation is the money contributed and employed to carry on the business of the company. 468. Joint Stock is the money or capital of any company, incorporated or unincorporated. 469. Scrip or Certificates of Stock are the papers or documents issued by a corporation, giving the members their respective titles or claims to the joint capital. 4700 A Share is one of the equal parts into which capital stock is divided. The value of a share in the original contribution of capital varies in different companies; in bank, insurance, and railroad companies of recent organization, it is usually $100. 471. Stockholders are the owners of stock, either by original title or by subsequent purchase. The stockholders constitute the company. NOTES.-i. The capital stock of any corporation is limited by the charter. As a general rule, only a portion is paid at the time of subscription, the residuo being reserved for future outlays or disbursements. 2. When the capital stock has been all paid in, money may be raised, if necessary, by loans, secured by mortgage upon the property. The bonds issued for these loans entitle the holders to a fixed rate of interest. 3. Stocks, as a general name, applies to the scrip and bonds of a corporation, to government bonds and public securities, and to all paper representing joint capital or claims upon corporate bodies. 4. The members of an incorporated company are individually liable for the debts and obligations of the company, to the amount of their interest or stock in the company, and to no greater amount. But the members of a firm or house are individually liable for all the debts and obligations of the company, without regard to the amount of their share or interest in the concern. The calculations of percentage in stocks are treated in this work under the heads of Stock-jobbing, Assessments and Dividends, and Stock Invest ments. STOCK-JOBBING. 472. Stock-jobbing is the buying and selling of stocks with a view to realize gain from their rise and fall in the market. 473. The Nominal or Par value of stock is the sum for which the scrip or certificate is issued. 474. The Market or Real value of stock is the sum for which it will sell. 475. Stock is At Par when it sells for its first cost, or nominal value. 476. Stock is Above Par, at a premium or advance, when it sells for more than its nominal value. 477. Stock is Below Par, or at a discount, when it sells for less than its nominal value. NOTE. When the business of a company pays large profits to the stockholders, the stock will be worth more than its original cost; but when the business does not pay expenses, the value of the stock will be less than its original cost. The average market value of stock generally varies directly as the rate of profit which the business pays. 478. A Stock Broker is a person who buys and sells stocks, either for himself, or as the agent of another. NOTE.-A person employed by a manufacturer, wholesale dealer, or commission merchant, to seek customers and close bargains, at or from his place of business, is called a broker, of the class or kind corresponding to his business. 479. Brokerage is the fee or compensation of a broker. 480. The calculations in stock-jobbing are based upon the following relations : S I. Premium, discount, and brokerage are each a percentage, computed upon the par value of the stock as the base. II. The market value of stock, or the proceeds of a sale, is the amount or difference, according as the sum is greater or less than the par value. NOTE 1.-In all examples relating to stocks, $100 will be considered a share, unless otherwise stated. EXAMPLES FOR PRACTICE. 1. What cost 54 shares of Reading Railroad stock, at 4 % premium? ANALYSIS. We first compute the premium upon the par value of the stock, and find it to be $243; adding this to the $5400, we obtain the cost, or market value, $5643. Or, since every dollar of the stock will cost $1 plus the premium, or $1.045, $5400 will cost 5400 x $1.045 $5643. = 2. What do I receive for 32 shares of telegraph stock, which a broker sells for me at 15 % discount charging % brokerage? 3. I put $35400 into the hands of a broker to be invested in Missouri State Bonds, when their market value is 12 % below par; how many shares shall I receive, if the broker charges 1% for his services? $1.00$.12 $ .88$.001 $35100.885 OPERATION. $.88, market value of $1. $40000 400 shares, Ans. ANALYSIS. Since the stock is 12% below par, the market value of $1 is $.88; adding the rate of brokerage, we find that every dollar of the stock will cost me $.885. Hence for $3500 the broker can buy $35400.885 = $40000 = 400 shares. NOTES. -2. The rate of brokerage in New York city has been fixed by custom at per cent. 3. Since brokerage as the same base has the premium or discount, the rate of brokerage may always be combined with the rate of premium or discount, by addition or subtraction, as the nature of the question may require. 4. The price of stock is usually quoted at a certain per cent. of the face, or nominal value. Thus stock at 4 % above par is quoted at 104 %; stock at 5 % below par is quoted at 95 %; and so on. 4. What is the market value of 15 Ohio State boids at 112 % ? Ans. $1680. 5. What shall I realize on 20 shares of Panama railroad stock at 135 %, brokerage at 13 %? Ans. $2665. 6. My agent bought for me 120 shares of N. Y. Central railroad stock, paying 80 %, and charging brokerage at %; what did the stock cost me? Ans. $9750. 7. What cost 36 shares in the Merchants' Bank, at a premium of 7%, brokerage %? 8. A speculator invested $21915 in shares of the Harlem railroad, at a discount of 603 %; how many shares did he buy?5 9. If 400 shares of the Bank of Commerce sell for $40150, what is the rate of premium? Ans.%. 10. A broker receives $48447 to be invested in bonds of the Michigan Central railroad, at 943 %; how much stock can he buy, allowing 14% brokerage? 11. My agent sells 830 barrels of Genesee flour at $6 per barrel, commission 5 %, and invests the proceeds in stock of the Pennsylvania Coal Company, at 823 %, charging % for making the purchase; how many shares do I receive? Ans. 57. 12. I purchased 18 shares of Ocean Telegraph stock, par value $500 per share, at a premium of 2 %, and sold the same at a discount of 28%; what was my loss? Ans. $2700. NOTE 5. The rate of loss is .02.+.28.30, or .30 %. 13. A speculator exchanged $3600 of railroad bonds, at 5 % iscount, for 27 shares of stock of the Suffolk Bank, at 3 % premium, receiving the difference in cash; how much money did he receive? 14. A merchant owning 525 shares in the American Exchange |