The interest coupons on government coupon bonds are payable to the bearer, and will be cashed by any bank or banker in the United States. Coupon bonds may be converted into registered bonds of the same issue.

849. A Registered bond is one which is payable to the owner as registered in the books of the corporation or government issuing it. Registered bonds can be transferred only by assignment and registry on the books of the corporation.

The interest on registered bonds is paid by checks, which are made to the order of the regis tered owner and sent to him by mail. The checks for interest on registered government bonds, when properly endorsed, will be cashed by any bank or banker.

850. A Corporation is a fictitious person. It consists of several natural persons, who in the name of the corporation are authorized by law to transact business.

The instrument which defines the rights and duties of a corporation is called a Charter. It is issued by government, under seal.

851. Stock Quotations are the public prices or rate per share that stock

sells for.

852. A Dividend is a certain profit divided among stockholders.

Dividends and assessments are declared at a certain per cent. on the capital stock. Divi dends are declared yearly, semi-annually and quarterly.

853. An Assessment is a sum levied upon the stockholders of a corporation to make up its losses, etc.

854. Premium is the per cent. profit of stock over 100%, or its par value. Discount is the per cent. loss of stock below 100%, or par value.

855. To Find the Dividend on Stocks, the Capital Stock and Rate Per Cent of Dividend being given.

EXAMPLE.-The Wilson Manufacturing Co., of Trenton, N. J., has a net profit of $17812.50 for the year, to be adjusted. Its capital stock is $250000, divided into 2500 shares of $100 each, and the directors have declared a dividend of 5%. How much will the dividend be, and how much will the sinking fund be after the dividend is transferred? also, how much of the dividend will be due C. B. Henry, who owns 15 shares?

Rule.-I. To find the total dividend: Multiply the par value of the capital stock by the rate per cent. of dividend.

II. To find the dividend due a stockholder: Multiply the par value of one share by the number of shares owned, and multiply this product by the rate per cent. of dividend.

EXAMPLES FOR PRACTICE.

856. 1. The Citizens Gas Co., of Rochester, N. Y., declares a dividend of 7 on its capital stock of $300000. Find the total dividend and the amount due Martin Bishop, who owns 25 shares of the par value of $50 each.

2. A bank with a capital of $200000 declares a dividend of 4%. Find the amount of dividend, and B's dividend who owns 12 shares, of the par value of $100 each.

3. A Boston railroad company having a capital stock of $3500000, divided into 35000 shares, declares a semi-annual dividend of 22%. How much is the total dividend, and how much is due A, who holds a certificate for 16 shares?

4. The Johnson Machine Co., of Cincinnati, O., declared a quarterly dividend of 1% on its capital stock of $150000. Find the total dividend due stockholders, and C's portion, who owns 50 shares of the par value of $100 each.

5. A manufacturing concern has a capital stock of $200000. Its net earnings. for the year are $28512.75. Pursuant to its charter 3% of the net earnings is set aside as a Sinking Fund to cover losses, 8% is declared for dividends, and the remainder is transferred to an account called Undivided Profits, from which to declare subsequent dividends or to meet current expenses. Find the amount carried to dividend account, sinking fund account, and undivided profits account. 857. To Find the Rate Per Cent. of Dividend, the Capital Stock and Net Earnings being given.

EXAMPLE. An insurance company having a capital stock of $500000, has net earnings of $45813.50. After setting aside 1% for a sinking fund, how great an even per cent. dividend may be declared out of the remainder?

Rule.-From the net earnings deduct the amount to be set aside for the sinking fund, if any, and divide the remainder by 1% of the capital stock; the quotient will represent the rate per cent. of dividend.

EXAMPLES FOR PRACTICE.

858. 1. If the capital is $1500000, and the net earnings are $52500, what rate per cent. of dividend may be declared?

2. A railroad company having a capital of $400000 has net earnings of $33500 to divide among its shareholders. What is the greatest even per cent. of dividend that may be declared?

3. A gas company having 2000 shares, at the par value of $50 each, has net earnings of $18500. What even rate per cent. of dividend may be declared?

4. On Jan. 1st, 1894, a manufacturing company issued 2000 shares of its capital stock at the par value of $100 each. At the end of the year the net earnings were $16850. What even rate per cent. of dividend was declared, and how much remained for undivided profits?

5. The Excelsior Bicycle Co.'s loss and gain accounts show the following for the year: Gross earnings, $29518.75; expenses, $9618.75. Its capital stock being $200000, what even per cent. of dividend may be declared, and what will be the amount of undivided profits, if 1% is first set aside as a sinking fund?

859. To Find the Par Value, the Premium or Discount being given.

the

EXAMPLE.-Sold Mutual Gas Co. stock for $18000, at a gain of 12%. Find par value of the stock.

Rule.-Divide the sale by 100% plus the rate of premium, or minus the rate of discount; the quotient will represent 1% of the par value, which multiplied by 100, will represent 100%, or the par value.

When the net gain or the net loss, and the per cent. of gain or loss are given, divide the gain or loss by the rate and multiply the quotient by 100.

When dividends or assessments and the amount of the sale are given, proceed as under the rule.

861. To Find the Market Value, the Premium or Discount being given.

EXAMPLE.—Find the market value of 150 shares Vermont Central Railroad stock, par value $100 each, quoted at 93%.

Rule.-Multiply the par value by 100% plus the rate per cent. of premium or minus the rate per cent. of discount. The product will be the market value.

862. Find the market value of the following stock of the par value of $100 per share.

863. To Find the Rate Per Cent. of Investment, the Cost and Dividend being given.

EXAMPLE.-What per cent. profit is made on stock costing 80 and paying a dividend of 10%?

Rule.-Divide the rate of income by 1% of the cost or market value. quotient will represent the rate of investment.

Proof:

The

MISCELLANEOUS EXAMPLES.

865. 1. What per cent profit is made on the investment if stock paying 6% dividend is bought at 120?

2. A manufacturing company having a capital of $100000 has net earnings of $6500. What rate per cent dividend may be declared?

3. A natural gas company declares a semi-annual dividend of 74% on its capital of $300000. What is the total dividend, and how much is due C, who owns 68 shares of the par value of $50 each?

4. How much money will be required to purchase 150 shares D. R. & B. railroad stock, par value $100 each, quoted at 764%, brokerage %?

5. I paid $4440 for Kansas City & Pacific Railroad stock at 74. shares at $50 each did I buy?

How many

6. H. M. Barton bought through a broker, at % brokerage, the following shares of railroad stock of the par value of $100 each: 75 shares Mobile & Ohio, at 65ğ; 100 shares Milwaukee & St. Paul, at 123; 80 shares Louisville & Nashville, at 1134; 20 shares N. Y. Central, at 1234. Find the total cost.

7. A broker bought for a customer, at 1% brokerage, 800 shares New Jersey Central Railroad stock, par value $100, at a total cost to his customer of $100100. Find the market quotation and brokerage.

8. A business man owns 18 shares of gas stock of the par value of $100 per share, upon which he was paid $99 as a dividend. If the capital stock was $150000, what was the total dividend paid to stockholders?

9. A street railway company declared a dividend of 21 per cent. If the amount · of the dividend was $16875, what was the capital stock?

10. The Silver Lake Ice Co. declares a semi-annual dividend of 21% on its capital stock of $100000. Find the total dividend and the amount due Horace Brown who owns 75 shares of the par value of $100 each.

11. When U. S. 5's, 1907, are selling at 1191, how much must be invested in them to produce a quarterly income of $1250?

12.

Brown bought bank stock paying a regular annual dividend of 8% and realized 6% on his investment. What did he pay for the stock?

13. I purchased through a broker $5000 Rock Island 5's at 1014. What did the bonds cost me, the broker's charges being?

14. A father invested $5712.50 in U. S. 4's, 1907, for his son. If the bonds were purchased at 1141, what was the son's annual income from the bonds? 15. What is the cost of four $1000 U. S. 4's, 1907, reg. bonds at 1141, brokerage %?

16. The net earnings of a railroad company is $1336375.48, and its capital stock, $25000000. If 6% is set aside for a sinking fund, what even per cent. of dividend can be declared, and how much will remain for undivided profits?

17. Find the total cost of 1000 shares of American Sugar Ref., at 82; 500 shares of General Electric, at 371; 75 shares Michigan Central, at 99; 10 shares Manhattan Elevated, 113g. Brokerage %.