And Interest. See "Accrued Interest." A. N. F. M. August, November, February, and May; interest or dividends are payable quarterly beginning with August. Anna. See India Money Table under "Rupee." Annual Interest. Interest payable once a year. Very few investments have interest payable at such infrequent intervals. They are not considered as desirable as investments where interest is payable semi-annually or quarterly. Annuity. A fixed sum of money payable yearly; or, to put it differently: a fixed sum-granted or bequeathed - payable at certain regular periods. Anthracite Roads. See "Hard Coalers." Anticipation of Taxes. See "Tax Relief Bonds.".. Anti-Stock Watering Laws. Laws which require that there shall be a dollar invested for every dollar of stock issued. (See also " Blue-Sky Laws.") Apd. The "ticker" abbreviation for "assessment paid." (See "Assented Stocks.") Appraised Value. The value set upon a property by an "appraiser." Appraisement. The placing of a value upon a property; the value set. Appraiser. One who is named by an individual or appointed by law to estimate values. Arbitrage. Buying a security in one market and selling it. in another at a better price; taking advantage of a difference in current quotations upon the same security in two different markets, by buying in one and selling in the other, at a higher price; the difference, less certain expenses, representing the " arbitrageur's" profit. Sometimes the sale is made in one market before the purchase in the other. "Arbitrage " business is carried on very extensively between London and New York, but chiefly by what is known as "international banking houses," to a much lesser degree between different American markets. "Rights" for the privilege of subscribing to a new stock issue may be handled as an "arbitrage" dealing in this way: Suppose "rights" in a certain corporation can be purchased at 41. An "arbitrage" dealer buys 100 of these for $450. These give him the privilege of subscribing to 100 shares, we will say, of new stock in the company. Immediately upon making the purchase, he sells 100 shares of the old stock of the company at 105 per share, borrowing the stock temporarily to make delivery until the new stock shall be issued in accordance with his "rights." By this transaction he makes fifty cents per share, for his "rights" cost him but $4.50 each, carrying the privilege of subscribing to the new stock at $100 per share. The new stock would cost him but 1041, whereas he has sold the old stock at 105. Also, in case of merging of one company into another, where the stock of one company may be exchanged for stock in the other, opportunities for "arbitrage" dealing often arise. In the business known as "foreign exchange" (see "Triangular Operation ") the triangular plan of using a credit at one place to settle a debit at another, is a transaction known as "arbitrage." (See "Back Spread.") Arbitrage Houses. Stock exchange houses which make a specialty of dealing in "arbitrage." (See that subject.) Arbitrage Issues. (First read "Arbitrage.") Securities upon which "arbitrage" business is done, but as domestic 'arbitrage"-"shunting" as it is called is not countenanced by the leading stock exchanges, those issues which are dealt in by "arbitrage" dealers between the London and New York markets are more particularly understood. Arbitrageur. A dealer in "arbitrage." (See that subject.) Arbitrary. A fixed sum paid by a main line of railway to a branch, or connecting line, for freight originating on the latter, regardless of what is its proportion of the through rate on such freight. This is on the theory that a branch road, delivering freight to a main line, is entitled to more than its mileage proportion of the through rate. Arbitrated Exchange (or Arbitration of Exchange). Refer to "Triangular Operation," which is what is understood. Argentines. The various securities of the Argentine Republic dealt in on the London Stock Exchange. Asked Price. The price at which a security or commodity is offered for sale. The "asked price" of Western Union Telegraph stock is 95 when that is the price at which it can be bought. Assaying. A chemical analysis of ores or metals. Assay Office. A branch of the U. S. Mint next to the SubTreasury on Wall St., in New York City. Its functions are to assay, part, and refine gold or silver when presented in the form of crude bullion, jewelry, or whatever it may be, and the manufacture of gold and silver bars. All such that pass through the assay office" bears the Government stamp certifying to weight and fineness. A charge is made for doing the work for others than the Government. There are assay offices" at other points in the country. Assay Office Bar. A United States Government bar of fine gold or silver manufactured at a government " assay office," and so termed to designate it from one made without government regulation, which is called a "commercial bar." Assented Stocks (or Bonds). In the event of a corporation passing through a reorganization where the security holders are requested to give "assent" to a certain plan; in the case of a stock being "assessed; or similar instances where the consent of each share or bondholder is desired, some banking house or trust company is usually selected to receive the securities and stamp thereon in each case the fact that the holder has" assented" to the plan or paid the " assessment." If more than one assessment" is called for, "first assessment paid,' ""second assessment paid," etc., as the case may be, will be stamped on the security. Securities so stamped may have quite a different market value from those not stamped, for it is evidence of the assent or non-assent to the plan. Financial columns and stock exchange sheets refer to the above in the brief method of "assented, ""ass't. pd.,' ","1st ass't. pd.," etc. Assessable. See "Non-assessable." Assessed Valuation. When a banker offers for sale a bond of any municipality, the " assessed valuation" is one of the important facts set forth. There is a general rule that the total debt of a municipality shall not be greater than a certain percentage of the "assessed valuation" after taking into consideration any sinking fund or debt for water works which are supoosed to be self-sustaining. The "assessed valuation" is the value fixed upon the property of the municipality by authorized officials for the purpose of taxation, but the rules for fixing the assessment vary in the different States. In Massachusetts, for instance, it is customary to assess property somewhere near its marketable, or real, value, whereas, in many of the Western States the assessment is based upon about a third of the marketable value, or, even, in some cases, a lesser percentage; therefore, it is necessary to have some knowledge as to the percentage which the assessed valuation" in a given State bears to the marketable value of the property in satisfying oneself as to whether or not the indebtedness of a municipality is excessive for the valuation given. The "real valuation " is very frequently given in banker's circulars, offering municipal bonds, for the purpose of enabling an investor to reach the conclusion above mentioned. This "real valuation," however, is largely guess work, but long familiarity with such matters has enabled the bankers to approximate such figures with a reasonable degree of certainty. Assessment. See Non-assessable" and "Double Liability." Assessment and Fraternal Insurance. A system of life insurance by which the annual premium to be paid by the insured is not fixed, but subject to change from time to time, according to the deaths during the period, each member being assessed for his proportion of the expense of the Society and the death losses. This is probably, as a class, the cheapest kind of insurance," but has proved to be the most uncertain, on account of the many associations which have failed, and the at times high assessments levied. It is taken out largely by those of limited means and in small amounts. It is commonly maintained by Granges and secret orders in general, and is a very old form of insurance, its most successful exponent being the "Guilds" of the older countries. Assets. Everything of any supposed value belonging to a "such person, business, or corporation is called "assets; as property, real estate, machinery, merchandise, material and stock in process of manufacture, cash and debts receivable, patent rights, trade marks, good will, profits, etc. Assets Currency. A currency which it has been suggested that national banks issue but has not yet been attempted. It has received much attention and certain recommendations from the Committee on Currency and Banking of the House of Representatives. It was proposed to issue bank notes, secured with certain limitations by the general assets of the issuing bank, instead of Government Bonds. Assign. To transfer in writing any right or interest. merchant is commonly said "to assign" when, being unable to pay his debts, he transfers his property to another for distribution among his creditors. Assignat. During the French Revolution of 1789, monetary difficulties were experienced in France, resulting in an issue of paper currency known as "assignats," the security behind it being church land that had been confiscated, besides which they were additionally secured by all the national domains and other property. The issue became so great, over 45,000,000,000 of francs, that there was a great decline in their value before their withdrawal.1 Conant says that their depreciation was due to "the attempt to base cir The People's Money, by W. L. Trenholm, and Century Dictionary and Cyclopedia. culating notes upon land and other wealth of unquestioned value, but not of immediate exchangeability.' Assignee. One to whom some right or interest is transferred by writing. An "assignee for the benefit of creditors" is one to whom an insolvent merchant voluntarily transfers his property for conversion into cash and distribution among his creditors. An "assignee in insolvency" is a person appointed by a State court under the State insolvency law to take possession of the property of an insolvent debtor, convert it into cash, and distribute it among the creditors. Assign in Blank. A written transfer (see "Assign") in which there is no name inserted of any party to whom transfer is made, but which may be done at any time. Assimilated. An issue of stocks or bonds has been "assimilated" or "absorbed " when disposed of to the investment public. Associated Banks. Members of the "Clearing-House Association." Ass't. Assessment. * Assumed Bonds. Bonds issued by a corporation, the control or ownership of which passes into the hands of another corporation, which latter agrees to be responsible for the payment both of the principal and interest of such bonds, are spoken of as "assumed bonds; " that is, the " "parent company assumes the indebtedness. In railroad finance such securities are spoken of as "divisional issues," which is really what they are. Again, they are frequently referred to as "guaranteed bonds," but in the latter case the fact of the guarantee appears upon the bonds themselves. Unless a payment of an issue of an absorbed company has been actually assumed by the "parent company," the investor can only look to the value of the property actually mortgaged as security for its investment, although the principal and interest on such issues might be protected by the larger company for the benefit of its own credit. Where the bonds have been actually assumed, then the "parent company" may be looked to for the final payment, although even in such a case it is not advisable to purchase securities of a branch or division which is not of sufficient importance to the controlling company to make it worth while to maintain the same and keep it in good physical condition. Co. "A" Stock (or Shares). See "Preferred Stock." Atch. Atchison, Topeka & Santa Fé Railway Company. Atchison (or Atch). Atchison, Topeka & Santa Fé Railway |