Most Viewed Bonuses
Automatic Re-investment Of Dividends
American Railways
Colonial Government Securities
British Government Funds
Banks
Foreign Government Stocks
Canals And Docks
Dividends
Borrowers
Least Viewed
Investments
Indian Railway Stocks
Table Of Interest On Investments Sample
London Banks And Banking
Loans To Corporations And Counties Of The United Kingdom
Terminable Annuities
Railways
Mortgages
Insurance Companies
The Stock Exchange
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Railways
Next to the British Government Funds, by far
the largest amount of money is invested in Eng-
lish railways. First in order of safety, as an
investment, is the debenture stock of a railway
company. This is the first charge on the rail-
way, and holders of the stock are paid the in-
terest thereon in priority to all other stocks. In
the event of the failure of the company they
must also be fully satisfied as to principal and
interest before any one else can receive a penny.
Any amount of stock, odd or even, may be pur-
chased through a banker or broker, and war-
rants for the interest are forwarded half-yearly
to the address of the registered holder. The
debenture stocks of good English railways com-
mand a high premium, and the investment,
therefore, though undoubtedly safe, does not
yield much in the way of interest. Guaran-
teed stocks are of various kinds and rank --
some on the same level as, and others next in
order to, debenture stocks. In some cases
the interest is guaranteed by another railway.
Before investing in these stocks the nature of
the guarantee should be ascertained and its value
taken into consideration. Preference stocks
and shares come next in rank as an invest-
ment. The interest on these is fixed at a cer-
tain rate per cent., and, after satisfying the
preceding stocks, must be paid in full; or if
there is not sufficient profit in the year to pay
in full, then as much as means will allow.
But any deficiency cannot be carried on to the
next year, and so it is lost to the holders.
There are several degrees of Preference
stock, some taking precedence of others as to
interest; a first preference may be as good as
debenture stock, whilst the last preference of
the same railway company may be no better
than ordinary stock.
Preference stock may be purchased in any
amount in the market, and the interest war-
rants are sent half-yearly to the registered
holders.
Ordinary stocks depend on the profits for the
year for the interest they yield, and thus afford
a wide field for speculation. The stocks of the
great English lines may be relied upon as a
good investment, the profits being steady and
sufficient to assure a fair amount of interest
after satisfying the prior claims of debenture
and preference stocks.
Ordinary stock may also be purchased in any
amount, and the warrants for interest are sent
half-yearly to registered holders of stock.
In all cases railway warrants of every kind
will, upon written request to the secretary of the
railway company, be forwarded periodically to
the bankers of the holder of the stock for the
credit of his or her account.
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Informational