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CHAPTER III.

STOCKS AND LEADING SECURITIES.

STOCKS.

Stocks or Public Funds.-Refer to the Daily Papers for the price of the Stocks or Funds. Two prices are often mentioned. The lowest, at which people might have sold. The highest, at which they might have bought. There is little difference from day to day, unless some great political or commercial event has occurred.

66 Consols," is an abbreviation of Consolidated Three per Cent Annuities.

If the Consols are

quoted at 921 to 1, it would mean, that the public could sell £100 Stock at the rate of 921, that is, £92 2s. 6d., or buy at £92 5s. od.

The term £100 Stock is a mere phrase of reference; the real matter for consideration to the buyer is, that for each £92 2s. 6d., or whatever it may be, she can get £3 a-year for ever.

Brokers.

Remember, no transaction in the Stock Market can be effected but through the medium of a Broker, whether it be in Government Funds, Railways, or other Securities. By his aid considerable trouble and time is saved,

at a small expense. It is most important that you should apply to a respectable Broker.

The Broker's charge rarely, if ever, exceeds per cent., or 2s. 6d. for every £100 Stock. This is added to the cost of the purchase, or it is deducted from the sum received for the sale.

Always give your instructions in writing, it prevents many opportunities of fraud and mistakes.

Investing in the Stocks.-When you wish to invest any money in the Stocks, your easiest

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plan is to write to your Banker, who will employ his Broker. Suppose you wish to invest £250, write thus:

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Please to invest in my name the sum of two hundred and fifty pounds in the Three per Cent. Consols, and procure a Power of Attorney for dividends only.

£250:0:0

Anne Baxter.

Dividends are the half-yearly payments of Interest, on the different Government Shares and Stock. They are paid regularly, but generally three or four days after they become due. The transfer books are shut four or five weeks previous to the day on which the dividends become due, for the calculation of interest, and during that time nothing can be finally bought or sold.

You cannot receive your dividends unless you go in person for them, or employ a substitute of a character recognised by the law. You therefore

get a Power of Attorney for your Banker, or any one you can trust, to enable him to receive the dividends for you. After the first purchase, no new Power of Attorney or Letter of Attorney for dividends is requisite.

The Bankers will send you a Bank of England paper as a receipt for the money invested in the Stocks. When you buy Stock, you must keep the Seller's receipt, at least until you have received one dividend upon it; it is then of less consequence, as the receipt of a dividend shows that the Stock now belongs to you.

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Power of Attorney, or Letter of Attorney, is a stamped letter (if the sum to be received is above £3), to allow one Person on behalf of another to sell, transfer, or deliver Stock of any kind, or to receive dividends.

To obtain a Power of Attorney, write to your Banker, who will procure and send it you. You must sign the document with your name in full, and there must be two witnesses to your signature.

These also must sign their names in full, and add the places of their abode. No person under age can be a witness.

A Stamped Power of Attorney ordinarily costs £1 Is. 6d. An unstamped one (for sums below £3), Is. 6d.

If you wish your Banker to receive your

dividends, it is necessary for you to get a Power of Attorney for him to keep. It is well then to have it made out for dividends only, else he might sell out your Stock, if dishonest.

When parties attend at the Bank, and execute their own Transfers for the disposal of Stock, a Letter of Attorney is not required.

A Banker cannot act for any of his customers in the Stocks, without a Power of Attorney.

For Selling out of the Stocks.-The most convenient plan, especially for Ladies, is to write to their Banker, and for him to employ his Broker. Suppose you want to sell out £1,200, you can write thus:

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