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In a typical city or town, on a typical resident sltreet, we find a typical hope of couriypi. John q public earns enough money to kieppayments on a new car. He takes pride in owning a fine, new, longterm mortgaged home that was built to last a lifetime. Mrs. John q public no longer finds housework fatiguing, laboring, thanks to labor saving devices, including her husband. Mr. John q, because of a 40hour week, has the leisure to dream about his favorite sport. Darling. Often in a secluded corner of his private den, john q reflects on some of the Better Things he has done with his life. Insurance to protect his family if he is called before his time. Money in a savings account for emergencies. For summer vacations. And to help put john q junior through college. In spite of the high cost of being a husband and father, john q has a private little nest egg. His practical nature tells him it ought to do more than collect moths. Where did i put the thing . Common stock, do i own any . I dont even know what they are. In that case, it night bemig good idea to get a little information. Lets start with a fellow who owns a s and operates a companyt makes and sells oil drums. Each year customers buy more and more because he makes a better oil drum than his competitors. One day, customers demand more oil drums than the owner can produce. He will have to build a larger plant to expand production. He figures it will take about 3 million to do the job. So he decides to form a corporation to sell shares in his business to raise the capital he needs. First, the owner goes to the State Government to get a Corporation Charter and permit to sell shares in this business. Next, our friend goes to an investment banker and shows him the record of the oil drum manufacturing companys past performance and plans for expansion. The investment banker decides to help our friend sell shares in the corporation to raise the 3 million. 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 file contains nothing but the truth. Registration with the sec does not imply that the government approves the stock issue as a good investment, but only assures the public that if any of the material statements about the stock issue are false, punishment will be according to the law. After sec 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 which returns his 3 Million Investment and shows a profit for his services in selling the stock. Money received from the sale of shares in the business builds a new and better plant, which produces more and better oil drums. The people who bought the common stock own proportionate shares in the plant, tools, equipment and all of its assets. Common Stockholders Elect the directors of the corporation. Directors represent the stockholders and are responsible for the way the business is run. Directors determine the amount of dividends, if any, to be paid out of earnings to the stockholders. Naturally, when stockholders invest in a business, they hope to sereceive dividends to help y for necessities of life. Within a few short years, an increasing demand for the companys product poses another problem for our friend. How can he fill all the orders . He will have to build more plants and buy more tools to increase production of oil drums. It will take about 20 million to do the job. One way to get this Additional Capital is to sell more stock to many more people. So the oil drum Manufacturing Corporation votes to send its president to the New York Stock Exchange to see if their common stock can qualify for lifting. The corporation wants to list its securities on the exchange so the stock they need to sell will be more attractive to investors all over the nation. Occurty on the New York Stock Exchange can be sold for cash any time in the national 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. The stock list Department Investigates the qualifications of corporations examined for listing on the New York Stock Exchange. The corporation must have substantial assets in the form of plants, tools, equipment and cash. It must have at least 1,500 stockholders who together own at least 300,000 shares of the corporations stock. The corporation must show successful management and sales records. And annual net earnings at the time of listing of at least 1 million. The proposed stock issue must meet federal, state and New York Stock Exchange regulations. The corporation must agree to report to its stockholders at frequent intervals. If the examination by the stock list department indicates the corporation meets minimum requirements of the exchange at the time of the examination, the corporations application for listing is recommended. The board of governors of the kno New York Stock Exchange approves the publication and sees it is made public. Read all about it. 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 some odm stock. The buyers broker in colorado sees the last odm transaction was at 10 a share. The buyer could buy from one to 99 shares which would be known as an odd lot. But our colorado friend decides continue to vest in 100 shares. Known as a round lot. The colorado broker wires the order to his new york office. The buy order is telephoned to the floor of the knonew york st exchange. Its given to the firms floor partner who becomes the representative of the buyer in colorado. The floor partner goes to the post where odm stock is traded. The representative of the buyer in colorado bids 10 a share for 100 shares. At the moment, theres no stock offered for sale at this price. In the meantime, however, in maine, an 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. 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 this national market. Yesterdays savings financed the miraculous growth of our railroads. Automobiles. Airplanes. Farm machinery. Communications. Electric light and power. Te text tiles and countless other industries. If a part of our savings continue to flow into industry, american labor, management and capital can continue to build new tools and plants. Industrial expansion creates jobs for hundreds of thousands of young people who must find employment. A growing capacity to make things which make things better in peace time can be our greatest protection in time of war. When danger threatens, we can convert industry to produce the things we need to defend ourselves. Common Stock Investments have helped to make our country prosperous and powerful. Owning a share in american industry is like owning a share in our nation. Theres a risk as well as an advantage in owning any kind of property. So get the facts before you put your money to work. Were featuring American History tv programs as a preview of whats available every weekend on cspan3. Tonight, we show you remarks from the annual Lincoln Forum symposium which takes place every november in gettysburg, pennsylvania. Historians answer the question, what caused the civil war. American history tv tonight at 8 00 pm eastern on cspan3. Up next, on reel america, an animated film produced for the United Auto Workers in 1947. Brotherhood of man promotes racial tolerance using cartoon characters to represent prejudice and intolerance. This film was attacked by anticommunists because the screenwriting credits included one of the black listed hollywood ten. He was jailed after refusing to testify before the house on American Activities Committee in october 1947

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