coupon bond. They are often issued as an evidence of ownership in stock which, in turn, has been deposited in some trust company. A case in point is that of 200,000 shares of stock in the Philadelphia Company, which, when listed upon the official department of the Paris Bourse, were deposited in the form of ordinary stock certificates with the New York Trust Company, in that city, and against this stock were issued negotiable "bearer certificates." This was the class of security that was dealt in upon the Paris Bourse and not the real stock of the Company.

Bearer Scrip. See "Bearer Securities."

Bearer Securities. In England, any security, such as stocks, bonds, etc., which may be passed from hand to hand in the same manner as a "bearer certificate," described under that subject, is termed a "bearer security," and, in this connection, it is well to read "registered stock." The holders of bearer securities" are not enrolled upon any list of the companies, therefore a "bearer security" is proof of ownership. Dividends are only paid on presentation of coupons - which Englishmen sometimes term "cuttings"-detached from the securities themselves. We have but few examples in America of stocks upon which dividends are collectible in this way. Perhaps the most notable was that of the Southern Pacific R. R. Co. Formerly its stock certificates carried coupons which had to be cut off and presented for collection in the same manner as interest is collected upon ordinary coupon bonds. Bearer Shares. See "Bearer Securities."

Berthas. (See "Brightons.") The deferred ordinary stock of that company.

Berwicks. Used in London to designate the North Eastern Rwy. Consolidated.

Big Board. Used in cities where there are two or more exchanges to designate the principal one. The New York Stock Exchange, in that city, is referred to as the "Big Board" to distinguish it from either the "Consolidated Exchange" or the "Curb Exchange."

Bills Receivable. (See "Bills Payable.")

Blue Sky Laws. Laws looking to the regulation of investment dealers in the vending of securities, for the purpose of protecting investors from unscrupulous and dishonest dealers.

These laws do not attempt to prohibit unwise investments, but give State authority, through security commissions or banking superintendents, right to forbid sale within the State of securities which the officials believe would result in fraud upon investors.

The first important legislation was by Kansas and termed

the "Kansas Blue Sky Law." Practically every state now has enacted similar legislation. There are several books devoted to compilation and discussion of these laws.

The enforcement of these laws has been opposed by those who hold the view that it is an unjust species of paternalism and that States, in taking such action, exceeded their legal rights. But the United States Supreme Court has handed down a decision upholding the general principle that such legislation is within the police power of the several States. Bolsa. A term used in Spain for Stock Exchange or "Bourse."

Book. See "Make a Book."

Breads. Used in London to designate the ordinary shares of the Aerated Bread Co.

Brighton A. (See "Brightons.") The deferred ordinary stock of that company.

Brightons. Used in London to designate the London, Brighton and So. Coast Rwy.

British. Used in London to designate the ordinary stock of the North British Rwy.

Broad Gauge. See "Standard Gauge."

Brums. A London term for the ordinary stock of the London & No. Western Rwy.

Bubble Act.

In 1720 there was an English statute passed for the purpose of putting an end to such frauds as the "South Sea Bubble" (to which subject refer) and other illusory stock jobbing schemes.

Buying-in. See "Hammered."

Buying-In and Selling-Out Department. See "Hammered." Buying-In Day. (First read "Deed of Transfer.") When a transfer deed is not delivered to the buyer by a certain time, his broker may proceed to buy-in the security as described under "Hammered." The one who has failed to deliver the deed must bear any loss which his neglect has occasioned. The day on which this class of "buying-in" takes place is usually the tenth day after "pay-day " (see that subject) in each "account," and is called "buying-in day."

Caleys. Used in London to designate the ordinary stock of the Caledonian Rwy.

Calicos. Used in London to designate the ordinary shares of the Calico Printers Association.

Cancelled Trade. "Matched orders" are used to manipulate the market. The process consists in giving orders to buy and to sell the same stock at the same price by which an artificial activity is given, and likewise changes in prices effected.

There is another phase in dealings of this character by which the cancellation of a transaction may be brought about. A "professional trader," who had bought 1,000 shares of any given stock, say, at 90, with the idea of closing it out during the day at a profit, might avoid a loss, even if the bid price did not advance more than 1-8 of 1%. He might accomplish this by getting the bidder to take the stock at 90, which was his purchase price, and buy direct from the original seller, and, by so doing, "match" the trade to the satisfaction of both. Thus, he would have been put to no expense whatsoever, which would have been the case had he accepted the delivery of the stock, for there would have been (if the transaction were on the New York Stock Exchange) a transfer tax to pay besides the "clearance charges," etc.

Carrying-over Contracts (or Carryover Contracts). First read the subject "Fortnightly Settling Days" and then "Contango." These contracts arise on account of a postponement of the delivery of securities until the next "account day."

Chartered. Used in London to designate the ordinary shares of the British South Africa Co.

Chatham Pref. (See "Chathams.") The preference stock of that company.

Chathams or Chats. Used in London to designate the ordinary stock of the London, Chatham & Dover Rwy.

Claras. A London term for the deferred stock of the Caledonian Rwy.

Committee for General Purposes. See "Official List."

Commodity Paper. As defined under the Federal Reserve Act, "a note, draft, or bill of exchange secured by warehouse terminal receipts, or shipping documents covering approved and readily marketable, non-perishable staples, insured."

Companies' Consolidation Act, 1908. If on the prospectus of an English company issue, which has been filed with the Registrar of Joint Stock Companies (see that subject), should appear, below the title of the company, the statement that it had been incorporated under the Companies' Consolidation Act, of 1908, it will be understood that the company has been brought out in accordance with the provisions of the laws of Great Britain, entitling the purchasers of its securities to the protection of the English law. Such a statement would immediately convey to the English mind that this was a home company rather than one incorporated under New Jersey, Canada or elsewhere.

Construction Mortgage. Same as "Building Mortgage." (See "Mechanic's Lien.")

Continue. (First read "Fortnightly Selling-Days" and "Contango.") When a "bargain" is carried over until the next settlement, it is said to be "continued."

Contract Note. When a member of the London Stock Exchange has executed an order for his client, the latter receives notice from his "broker " that the order has been executed by the latter's sending him what is termed a "contract note. It is dated as of the day of the transaction, gives the name and the address of the "broker," amount of the security traded in, the price, commission, registration fee and Government stamp duties on the note and "transfer deed" if the latter is re

quired. Besides all this, words to the effect that the transaction is subject to all the conditions, customs, etc., of the stock exchange are included, and the date is entered as to when the amount becomes payable.

After the member's signature must follow: "Member of The Stock Exchange, London."

Conversion. The changing of an issue of Government Bonds from an existing to a lower rate of interest. In England, it specifically means the reduction of the rate of interest on Government Stock.

Conversion Parity. (First read "Convertible Bonds.") If one security is convertible at par into another at 200, they are upon a "conversion parity," or equality, when selling at those respective prices. If the former is quoted at 50 and the latter at 100, they would still be upon a "conversion parity." This example, however, does not take any account of accumulated dividend or interest upon the securities, which, to get actual "conversion parity" must be considered.

Corporate Stock. Principally used to designate the long term indebtedness of the City of New York, as opposed to the short term obligations which are usually denoted "Revenue Bonds" (see that subject), running two or three years or less, and "Assessment Bonds," maturing in about ten years from date of issue.

Corporation Stock. In America, this is the ordinary term for the stock of an incorporated company, but with some exceptions. A few of our cities, such as New York and Baltimore, designate certain of their bond issues as "corporation stock." In Great Britain, they refer to their municipal bond issues in the same manner.

Cotton Belt Road (or Route). St. Louis Southwestern Rwy. Co.

Cottons. Used in London to designate the ordinary shares of the English Sewing Cotton Co.

Coulisse. See footnote under "Agent de Change."

Counter Check. Issued by a bank for the convenience of a depositor having a check account therein, by which he can withdraw cash when his own check-book is not at hand. A check of this kind is for use within the bank only—that is, for the purpose of drawing cash by the depositor only-and not for the payment of bills or other obligations. The common wording of such a check is, in part: Myself Only....

Pay to....

Cover. The London equivalent of the American term "margin."

Crossed Order. See "Gross Trade."

Cumulative Ordinary Shares. (To understand such an issue one must first read "Cumulative.")

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The American "preferred stock" or the English "preference shares are the issues which usually carry the "cumulative feature, and it is very unusual to find "ordinary shares" (which correspond. to the American "common stock ") which are cumulative." But some of the English companies include this class. A notable example is that of Bovril Limited, which has its capital divided into the "debenture stock," 54% “cumulative preference shares," 7% "cumulative ordinary shares" and "deferred shares." "Cumulative ordinary shares" are, to all intents and purposes, "preference shares" and might more properly correspond to the American "second preferred," as we occasionally have a company with two classes of "preferred" - divided into "first" and "second preferred," or "A" and "B preferred."

Cumulative Participating Preference Shares. (First read "Cumulative.") There is an English custom, especially in speculative enterprises, of issuing a class of "cumulative participating preference shares" which, besides being entitled to the full preferential dividend, have, also, a right to a further participation in the profits, after a certain stated amount has been paid to the holders of the "ordinary shares." Shares of this class are well guarded, for they not only carry the right to a fixed rate of dividend, prior to any declaration upon the "ordinary shares," by which, under stagnant business conditions, the latter might not obtain any dividends whatsoever, but in case of large earnings obtain a further division. Such issues are not common.

Cumulative Preference Shares. The English equivalent of the American "cumulative preferred stock." (See "Cumulative.")

Cumulative Voting. This is a system of voting by which each voter has the same number, or within one of the same number, of votes as there are offices to be filled, thus per