Most Viewed Automatic Re-investment Of Dividends
Canals And Docks
American Railways
Bonuses
British Government Funds
Banks
Foreign Government Stocks
Borrowers
Colonial Government Securities
Dividends
Least Viewed
Insurance Companies
Surrenders
The Stock Exchange
Loans - The Interest On Which Is Guaran-teed By The British Government
Mortgages
Loans To Corporations And Counties Of The United Kingdom
Terminable Annuities
Table Of Interest On Investments Sample
Railways
Government Annuities
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Commercial And Industrial Companies
Speaking generally, taking shares in this
class of property is like purchasing tickets in a
lottery in which the prizes are not numerous.
It may fairly be said that at least three-quarters
of these companies are formed for the purpose
of relieving private owners of concerns which
were on the verge of failure through some cause
or another.
It would be palpably foolish for a man or a
firm doing a prosperous business to give it up
into other hands, unless such a price could be
obtained for it as would be almost ruinous to
the purchaser. True it is that in the remaining
quarter may be found perfectly legitimate un-
dertakings formed into companies, owing to the
death of the owner, deficient capital, or some
other valid reason. Some of these flourish and
take root, others are prosperous for a time and
gradually die out. After a time it will be found
that few remain which could be recommended
for a permanent investment; and much informa-
tion has to be sought and acquired before the
venture should be made.
There are, of course, many persons who have
the means of acquiring reliable information
about a company, and are able to form a sound
opinion as to its prospects, but the information
is derived from personal knowledge and not
from kind friends or from public prints, which
are not always to be trusted. These persons
purchase shares either for investment or as a
speculation -- in this latter case with a know-
ledge or, at all events, a safe presumption that
they will go to a premium, that is, rise in value
to considerably more than their nominal amount,
either from their own merits, or from an active
demand for them on the part of the public, or by
artificial stimulation. The holders know pretty
well when the highest price has been reached,
and then sell out with great advantage to them-
selves. It is often at that moment that the tyro
is recommended to buy, or is seized with a desire
to have a share in so good a concern, and parts
with his money. The knowing speculator has
taken his profit, and sees with grim satisfaction
the shares gradually declining in value, until
they arrive at the position of more than one-
third of existing companies which are now
quoted at a discount.
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