In a typical city or town, on a typical residential street, we find a typical home occupied by a typical american family. Like millions of his fellow americans, john q. Public works to keep up payments on a new car. He takes great pride in owning a fine new longterm mortgaged home that was built to last a lifetime. Mrs. John q. Public no longer finds house work fatiguing the and drudgery thanks for the lifesaving devices, including her husband. Mr. John q, because of the 40hour week has the leisure to dream about his favorite sport. Darling . Oftentimes in a secluded corner of his private den, john q. Reflects on some of the Better Things that he has done with his life. An insurance to protect his family if he is called before his time, and money in a savings account for emergencies, and sul mer summer vacation, and to help put john q. Through college. In spite of the high cost of being a husband and father, john q has a private nest egg, and his practical nature tells him that it ought to do more than collect moths. The common stock, do i own any . I dont even know what they are. Uhhuh, and in that case, it might be good idea to get a little information. Lets start with the fellow who owns and operates a company that makes and sells oil drums. Each customers buy more and more from our friend, because he makes a better oil drum than his competitors and one day, customers demand more oil drum thans the producer can produce, so he needs to build a larger plant to expand the production. He thinks it is going to take 3 million to do to job, so he decides to form a corporation to sell shares to raise the capital that he needs. First, he goes to the State Government to get a permit and charter to sell shares in this business. Next, our friend goes to the investment banker, and shows him the record of the oil drum manufacturing companys past performance, and the plans for expansion, and the investment banker decides to sell shares in the corporation to raise the 3 million. However, before any shares in the corporation can be sold, certain information must be filed with the securities and Exchange Commission in washington. The investment banker, and the owner must swear that the information they filednothing b and the registration with the s. E. C. Does not apply that the government improves the stock issue as a stock investment, but assures the government with the material statements of the stock issue are false, punishment is according to the law. After the s. E. C. Registration is effective, the investment banker pays the owner 3 million in exchange for a certain number of shares in the oil drum Manufacturing Corporation. The investment banker sells shares of the common stock to people at a price that returns his 3 million investment, and shows a profit for the services in selling the stock. Money receiving from the sale of shares in the businesses reveals a new and better plan which produces more oil drums. The people who bought the common stock own proportionate shares in the plant, tool, equipment and all of the assets. Common Stockholders Elect the directors of the corporation. The Stockholders Elect the directors, and they determine how the business will be done, and they determine how many will be placed on the dividends of the stockholders. Naturally, when the stockholders invest in a business, they expect to receive dividends to pay for necessary tis ities of and within a few short years, production poses another problem for our friend. How can he fulfill all of the orders . He has to build another plant and it is going to take 20 million to do the job. One way to get the Additional Capital is to sell more stock to many more people, and so the oil drum Manufacturing Corporation votes to send the president to the New York Stock Exchange to see if their common stock can qualify for listings. The corporation wants to list its securities on the exchange, so that the additional stock they want to sell is going to be more attractive to investors all over the nation. And those stocks listed on the national Securities Exchange can be sold for cash at any time in the marketplace. Each year, as many as 100 corporations inquire about listing their securities. Only 20 or 30 corporations are accepted for listing, and then only after a thorough diagnosis of the corporations financial health. Calling the president of the oil drum Manufacturing Corporation. Calling the president of the oil drum Manufacturing Corporation. Report to examination room b. Attention all members of the stock list department, report to examination room b. The stock list Department Investigates the stocks to be examined. And the corporation must have substantial assets in the form of plant, tools, equipment and cash. It must have at least 1,500 stockholders who together own 300,000 shares of the corporations stock. The corporation must show successful management and sales records and annual net earnings at the time of the listings for 1 million. The proposed stock issue must meet federal, state and Stock Exchange regulations, and the corporation must agree to report to its stockholders at frequent intervals. If the examination of the Stock Department determines it meets the minimum requirements of the exchange at the time of the examination, the corporations application for listing is recommended. The board of governors of the New York Stock Exchange finally approves the applicant kargs and sees that it is made public. Extra, extra, read all about it. And now that the oil drum Manufacturing Corporations stock is listed, its name is abbreviated for use on the ticker tape. Each time odm stock or any other stock listed on the exchange is bought or sold, the ticker tape flashes all over the nation, the price and number of shares traded. A buyer in colorado wants to purchase the odm stock, and the buyers broker in colorado sees that the last odm transaction was at 10 a share, and the buyer could buy from 1 to 99 shares which is known as an odd lot, but the colorado friend decides to invest in 100 shares. Known as a round lot. The colorado broker wires the order to the new york office. The buy order and it is telephoned to the floor of the New York Stock Exchange, and it is givephone the firms floor partner who becomes the representative of the buyer in colorado. The floor partner goes to the post where odm stock traded. And the representative of the buyer in colorado bids 10 a share for 100 shares, but at the moment no, stock is offered for salet that price. Sale at this price. Meanwhile in maine, and odm stockholder who needs cash decides to sell his 100 shares if he can get 10 a share. The maine broker wires the sell order to his firms representative on the floor of the New York Stock Exchange, and this firms floor partner representing the seller in maine offers to sell 100 shares of odm stock at 10 a share. The price of 10 a share is mutually acceptable, and the transaction is made. Like the cowboy in colorado and the fisherman in maine, investors all over the country use the facilities of brokers who are members of the New York Stock Exchange whenever they want to buy or sell stock of Companies Listed on the national market. Yesterdays savings financed the miraculous growth of our railroads. Automobiles, airplanes, farm machinery, communications, electric light and power, textiles and countless other industries contributing to the more enjoyable life. If a part of the savings continue to flow into the industry, american labor, management and capital can continue to build new tools and plants. Industrial expansion creates jobs for hundreds of jobs for young people who must find employment each year. A growing capacity to produce things that make life better in peacetime can be our greatest protection in war. When danger occurs we can convert industry into the things that we need to protect ourselves. Stocks have helped make us prosperous, and owning a share in the industry is like owning a share in the future of the nation. But remember, john q, there is a risk as well as an advantage in owning any kind of property. So get the facts before you put your money to work