Εικόνες σελίδας
PDF
Ηλεκτρ. έκδοση

203. Stocks.

(a.) Money invested in any property designed to yield an income is called STOCK.

The money invested by a man in his business is called his STOCK IN TRADE; that invested in government securities, bonds, &c., is called

GOVERNMENT STOCK.

(b.) The CAPITAL STOCK of any incorporated company is the money paid in by its members for the general purposes for which the company was formed. It is divided into equal parts, called SHARES. Any person owning one or more of these shares is a STOCKHOLDER, or member of the corporation. STOCKS is a general term applied to the shares themselves, which may be bought or sold like any other property.

(c.) The value at which the shares of any corporation are rated in estimating its capital stock, that is, their first or original value, is called their NOMINAL VALUE, or their PAR VALUE, and is always the same. The price which they will bring, if exposed for sale, is their TRUE or REAL VALUE, and is different at different times. If the real value equals the par value,

the stocks are at par; if it be greater, they are above par, and sell at a PREMIUM, or ADVANCE; if it be less, they are below par, and sell at a DISCOunt.

(d.) The profits accruing to the corporation, if any, are at intervals distributed among the members in proportion to the number of shares each holds, and are then called dividends. The dividends are usually reckoned at a certain per cent of the par value of the shares.

1. How much will 11 shares Fall River Railroad stock cost, at an advance of 6 per cent, the par value being $100 per share?

$1100

Solution.

= par value of 11 shares.

666 per cent premium.

$1166 real value, or required cost.

2. How much will 11 shares Providence Railroad stock

cost, at a discount of 6 per cent, the par value being $100 per share?

Solution.

[blocks in formation]

3. How much will 53 shares Suffolk Bank stock cost at an ulvance of 23 per cent, the per value being $100 per share?

4. How much will 43 shares Vermont Central Railroad stock cost, at a discount of 78 per cent, the par value being $50 per share?

5. How many shares of stock at an advance of 5 per cent on the par value of $100 per share, can be bought for $1995?

6. How many shares of stock at a discount of 5 per cent from the par value of $100 per share, can be bought for $1805?

7. A broker paid $1776.50 for stock at an advance of 41 per cent. What was the par value of the stock bought? 8. A broker paid $4850 for bank stock, at a discount of 3 per cent. What was the nominal value of the stock bought? 9. A broker sold on consignment 376 shares bank stock, par value $100 per share, at an advance of 7 per cent. He charged 25 cents per share for his services. How much ought he to remit to the person consigning the stock?

10. I bought 40 shares of railroad stock, at 33 per cent below par, and after keeping them 10 months, sold them at 20 per cent below. How much did I gain on them, allowing that I hired money for the investment at 6 per cent interest, and that the par value of the shares was $100 each?

11. Alfred E. Potter bought 10 shares of bank stock at par, which was $50 per share. At the end of 3 months he received a dividend of 4 per cent, and at the end of 9 months he received another of 3 per cent. At the end of one year he sold the stock at an advance of 3 per cent. Money being worth 6 per cent per year, how much did he gain by the transactions?

[ocr errors]

NOTF

Interest should be reckoned on the dividends from the time .hey were made.

12. Crocker & Guild sent $972.63 to a stock broker, directing him to invest it in Fall River Railroad stock. He bought the stock at a premium of 7 per cent, the par value being $100 per share, and he charged a commission of 1 per How many shares did he buy?

cent on the money invested.

13. I paid $7398 for stock at 10 per cent below par, and some time after sold the stock at 10 per cent above par. How much did I gain on it?

14. Mr. Hamblin bought stock at 10 per cent above par, but he was obliged to sell it at 10 per cent below par. Allow ing that he lost $138.40 on it, what did he pay for it?

204. Insurance.

(a.) INSURANCE is an obligation assumed by one individu ◄ or company to pay to another a certain sum of money on the occurrence of some contingent event.

[ocr errors]

(b.) A house is insured against loss by fire, when some individual or company agrees to pay the owner a specified sum if it is burned within a given time.

(c.) A ship in like manner may be insured against loss by fire or by any of the perils of the sea.

(d.) When the obligation is to pay the person insured a certain sum if he is sick, it is called HEALTH INSURANCE; when it is to pay to his heirs, or to some particular person, a specified sum if the person insured dies, it is called LIFE INSURance.

(e.) The written certificate of insurance is called a POLICY. (f) The sum paid for insurance is called the PREMIUM.

(g.) If property is insured, the premium is a certain per cent of the sum covered, i. e., of the sum for which it is insured, and is usually paid at the time of effecting the insurance.

(h.) When health or life is insured, the premium is usually a given sum paid annually during the time for which the insurance continues; and its amount is calculated from tables prepared by the different insurance companies. It will, therefore, be unnecessary to give examples in life or health insurance.

1. What would be the expense of getting $1000 insured

on a house at a premium of 1 per cent, the charge for the policy being $1?

2. I had $1000 insured on my house for 7 years, for which I paid a premium of 2 per cent, and $1 for the policy. At the end of 5 yrs. 7 mo. 15 da. the house was burned, and I received the amount for which it was insured. Money being. worth 6 per cent per year compound interest, how much did I really save by having the house insured?

3. Oct. 1, 1854, I bought a lot of flour for $6000, giving my note payable in 6 months, and immediately shipped it for England. Oct. 8, 1854, I got it insured for $6000, paying a cash premium of 14 per cent, and $1 for the policy. Oct. 10, 1854, I paid a bill of $50 for cartage and other expenses. Nov. 1, 1854, I received information that the vessel was lost at sea; and Dec. 1, the insurance company paid me the insurance. I immediately put it on interest at 6 per cent, till my note for the flour became due, when I made a complete settlement. Had I gained or lost by the transactions, and how much?

205. Assessment of Taxes.

(a.) TAXES are duties or assessments laid on persons or property, usually for some public purpose.

(b.) A tax on persons is called a POLL TAX, and a tax on property is called a PROPERTY TAX.

The poll tax is only assessed on males between certain ages, as between twenty-one and seventy; and in some states is not assessed

(c.) In assessing taxes, it is necessary,

First. To estimate the value of all the property to be taxed, and make a complete inventory of it.

Second. To find the number of polls, i. e., the number of persons liable to pay a poll tax.

Third. To determine what portion of the tax is to be raised upon the polls, and to divide it equally among them. Fourth. To find how much must be paid on each dollar of the taxable property, to raise the remainder of the tax.

This last may be done by dividing the amount to be raised by the estimated value of the property on which it is to be raised. It will then be easy to find the tax of any individual.

1. A tax of $4800 is to be raised by a certain town. The taxable property is valued at $960,000, and there are 320 polls, each taxed $1.50. What will be the tax on each dollar, and what will be the tax of each of the following persons? A, who pays a tax on $5700, and 2 polls.

B, who pays a tax on $728, and 1 poll.
C, who pays a tax on $8976, and 3 polls.
D, who pays a tax on $1147, and 1 poll.

Solution. The tax on 320 polls at $1.50 each is $480, which, sub. tracted from $4800, leaves $4320 to be assessed on the property.

Since 960,000 is to be taxed $4320, one dollar will be taxed 960000 of $4320, which is 4 mills.

A's tax on 2 polls would be twice $1.50, or $3, and on $5700 property would be 5700 times 4 mills, which is $25.65, and added to $3 gives $28.65 as the amount of A's tax.

The tax of the others may be found in the same way.

2. A tax of $4800 is to be raised in a certain town. The taxable property is valued at $1,228,000, and there are 575 polls to be taxed $1.40 each. How much is the tax on $1? How much is the tax on each of the following persons?

J. S., who pays a tax on $1728, and 1 poll.
S. R., who pays a tax on $4235, and 2 polls.
L. M., who pays a tax on $7945, and no poll.
F. G., who pays a tax on $2794, and 1 poll.

206. Orders.

(a.) If a person should wish to have money which is due him paid to some one else, he might write an order for it, i. e., a paper requesting the one who owes it to pay it to the third person.

(b.) Suppose, for instance, that Edward Mellen owes Richard Jackson five hundred dollars, and that Mr. Jackson owes Stephen Baker one hundred dollars.

« ΠροηγούμενηΣυνέχεια »