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 earns enough money to keep up the payments on his new car. He takes great pride in owning a fine, new long term mortgage home that was built alive last a lifetime. Mrs. John q public no longer finds housework fatiguing. Thanks to a host of labor saving devices, including her husband. Mr. Jiang q, because of a 40 hour week has the leisure to dream about his favorite sport. Darling . Oftentimes, in a secluded corner in his private then, 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 into savings account for emergencies. For summer vacations. And to help with john cube junior through college. And spite of the high cost of being a husband and father john q has a private little nest egg. His practical nature says how to do more than collect moths. Common stock . Do i own any . I do not even know what they are. In that case, it might be a good idea to get a little information. Let us start with a fellow who owns and operates a company that makes and sells oil drills. Each year, customers buy more and more because he makes a better oil 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 Dollars 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 honor goes to the State Government to get a corporation charter, permit to sell shares in this business. Next, our front goes to an investment banker. He shows him the record of the oil drum Manufacturing Company past performance and inspection. The investment banker decides to help him sell shares and the corporation to help raise the 3 Million Dollars. 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 file contains nothing but the truth. Registration with the f c c does not imply that the government approves the stock issue is a good investment that only ensures 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 honor 3 Million Dollars and 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 Dollar investment and shows a profit for his services and selling the stock. Money received from the sale shares in the business builds a new and better plant which produces more and better oil drums. The people who bought the common stocks own proportionate shares and the corporations 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 help to receive dividends to help pay for necessities of life. Within a few short years, and increasing demand for the Companies Product poses another product for our front. 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 Dollars to do the job. One way to get this Additional Capital is to sell more stocks to many more people. So the oil trump Manufacturing Corporation votes to send its president to the New York Stock Exchange to see if their common stock can qualify for listing. The corporation wants to list its securities on the exchange so that the additional stop they need to sell will be more attractive to investors all over the nation. Securities listed on the New York Stock Exchange can be sold for cash any time in this 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 calling the president of the oil dry Manufacturing Corporation. Calling the president of the Manufacturing Corporation. Report to examination room be. Attention report to examination room be. 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 1500 stockholders who together own at least 300,000 shares of the corporation stop the corporation must show successful management at sales records. And annual net earnings at the time of listing of at least 1 Million Dollars. The proposed stock issue must meet federal state and New York Stock Exchange regulations. The corporation must agree to report to a stockholder 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 New York Stock Exchange finally approves the application and sees that it is made public. Extra extra, read all about it. Now that the oil to reManufacturing Corporation stock is listed its name is abbreviated for use on the ticker tape. Each time oh dm stock or any other stock listed on the exchanges bought or sold the ticker tape flashes all over the nation, price number of shares traded. A buyer in colorado wants to purchase some odm stock. The buyers brokering colorado sees that the last odm transaction was at ten dollars a share. The buyer could buy from one to 99 shares which would be known as an odd luck. But our colorado friend decides to invest in 100 shares. This is known as a round block. The colorado broke a broker wires the order to his office. To buy order, his telephones to the floor of the New York Stock Exchange. It is 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 its ten dollars a share for 100 shares, but at the moment there is no stop offered for sale at this price. In the meantime however in maine and odm who needs cash decides to sell his 100th shares if he can get ten dollars a share. The main broker wires the cell 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 south 100 shares of odm at ten dollars a share the price of ten dollars a share is mutually acceptable and the transaction is made. Like the cowboy and colorado, and the fishermen 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 stocks of Companies Listed on the national market. Yesterdays savings finance the miraculous growth of our railroads. Automobiles. Airplanes farm machinery. Communications. Electric light and power. Textiles and countless other industries contributing to a more enjoyable life. If a part of our savings continue to flow into industry, american lever 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 each year. Our growing capacity to produce things which make life better in these times 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 the future of our 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. The film was attacked by anticommunist he was called to testify in october, 1947. music music everybody has his own special dream about what the world is going to be like in the future. We know it is steadily shrinking. One of these days we are going to wake up and find that the people we are reading and ea
comparemela.com © 2020. All Rights Reserved.