Accounts Receivable. Open accounts on the books of a firm, corporation, etc., against its customers, not evidenced by written obligations such as notes or acceptances. Accrued Dividend. This has the same relation to a stock as "accrued interest" has to bond. Not many stocks are sold with accrued dividend" or or "with dividend," and then only in case of guaranteed stocks or stocks where the dividend is certain and fixed. 66 Accrued Interest. One of the most common expressions in connection with investment dealings, and one very frequently not clearly understood. Let us take, for example, a $1,000 bond bearing 4% interest, or, in other words, paying the holder $40 yearly. The interest is payable January 1st and July 1st, each year; $20 at each time. This interest will not be paid before it is due; that is, in the month of June the interest due July 1st cannot be collected; but, suppose Maria Jones had held the bond in her possession until the 1st of June, she would, therefore, be entitled to the interest upon her money at the rate of 4% annually from January 1st last, at which time she received the interest then due. Therefore, if Maria Jones wishes to sell this bond to Henry Drake at a price, say, of par and “accrued interest," she would receive from him $1,000 the principal sum of the bondand also the interest upon the $1,000 from January 1st to June 1st, or five months, at the rate of 4% per annum. Drake would, therefore, have paid to Maria Jones five months' interest, which he could not collect until the 1st of July, at which time he would collect not only the five months' interest paid Maria Jones, but the additional one month's interest, for the time which he had had his money invested; therefore, the amount of money paid to Maria Jones would not be lost by Drake, but would come back to him, together with his one month's interest, on July 1st. ac This is the only method by which it is possible to sell any security upon other than interest dates, without loss of interest to the holder, except an additional price be placed directly upon the security at the time of its sale, equal to the interest which has accrued since the last interest payment. Most stocks are sold in this latter way. Bonds are ordinarily sold upon the various Stock Exchanges with " crued interest," except defaulted and income bonds," which are sold without interest or flat," as it is called. Bonds were formerly sold "flat" upon the New York Exchange, which, at that time, resulted in a slight difference in the quotations as between that exchange and others, such as the Boston, Chicago and Philadelphia exchanges, where they were sold "with interest." 'With interest, "" and interest," or "interest added" are expressions, either of which is used in the same sense as "accrued interest." If a note is drawn payable "with interest" and no rate is mentioned, the legal rate of interest prevailing in the State where the note is made payable is understood. Accumulated Dividends. The dividends which have accrued but not been paid on "cumulative" (which see) stock. Accumulative. See "Cumulative." Acknowledgment. A certificate of the proper officer that the maker of a written instrument has appeared before him and declared it to be his wilful act and deed. Acquittance. A written agreement relieving one from the necessity of making a payment of money. Active Account. Bank deposits against which many checks are drawn, and at frequent intervals; accounts with brokers which show many transactions. Active Partner. One actively engaged in the business, and who incurs full liability, as distinguished from "silent partner " and "special partner." Active Stocks or Bonds. Securities which are frequently bought and sold; quoted daily, or nearly so, in the newspapers or reports of the various stock exchange transactions. When trading in a security ceases for any considerable time, it becomes inactive." Actual Rates. See "Posted Rates." Actual Reserve. The same as Reserve Held." Actuary. A person skilled in the theories and mathematical calculations on which' life insurance is founded and conducted. He computes mathematically the reserve upon policies, premiums, surplus, dividends, and performs any other mathematical calculations needed in the practice of the company. The study of death rates always has been, and must continue to be, a very important item in the activity of the "actuary," and the measuring of probabilities based on his calculations is one of his most responsible duties. Adjustment Mortgage Bonds. There are very few of these in existence, the most notable example being that of the Atchison, Topeka & Santa Fé Railway Co., which, in the reorganization of 1895, scaled down its original first mortgage to 75%, for which new first mortgage bonds were issued, and the difference, namely, 25% of the principal, and the defaulted interest, adjusted by issuing other bonds. These were accumulative "income bonds" for the first five years and then became a fixed obligation. These are known as adjustment mortgage bonds." Administrator (or Administratrix). A person named by the Probate Court, or other proper authority, to take charge of the goods and estate of one dying without a will. Ad Val. Ad Valorem. Ad Valorem. This is a term often met with in connection with custom house matters. Duties are commonly referred to under two classes - "ad valorem" and "specific." The former is the duty levied according to the cost or marketable value of the goods in the country whence they were shipped. Specific duty is one levied without regard to value, but at a fixed rate per pound, or ton, or by measure. Advance. "The market has advanced;" "prices have advanced; " expressions indicating a rise in prices. An occasional use of the word is to indicate that money has been loaned,1 or that a payment has been made. When Jones" advances" Smith $50, it may indicate either of these transactions. Advance Bill. This is a regular "commercial bill" of exchange, only drawn against goods to be afterwards shipped instead of against a shipment already made. They are usually drawn only when there is a considerable regularity of trading between the drawer and the acceptor of the bill, whereby the latter leaves it largely to the judgment of the drawer as to the character, amount, and date of shipment of the goods. Adventure. The Adventure Consolidated Copper Co. Also an old term for a shipping venture or speculation. Advice. If, as an example, you forward a check to some bank for deposit accompanied with a letter containing the words "for the credit and advice of James Taylor," it means that the bank must credit the amount to James Taylor and notify him; i.e. send him "advice," that it has done so. Also "letter of advice," to which refer. Afloat. A term used by traders in grain indicating the amount loaded in vessels which may be in harbour, or exported, but not yet reached its destination. After Sight. After presentation for "acceptance," to which refer. Agent. One who represents, acts for, or in behalf of, another, who is called his "principal." In brief, they are divided into two classes - "special" and general." The latter is "one who is appointed to do acts of a class, and a special agent. . . appointed to do indi 1 In the remarks by the Governor of the Bank of England following the Panic of 1866, loans made to assist the business community in tiding over the strained condition of affairs were referred to as advances." vidual acts." 1 An illustration would be that a "general agent" might be employed to buy pig iron, no restriction being placed upon him as to where or of whom he should buy. He would become a "special agent" if his principal had restricted him to the purchase of a certain lot of iron and his authority ended with the success or failure to purchase the especially described article. The relationship between agents, their principals and third parties, and the rights and liabilities of the same, are matters worthy of serious consideration, and should be thoroughly understood before one becomes involved as any of the above parties. (The reader wishing to pursue this subject further is referred to the subject of "Agency "very clearly set forth in "Essentials of Business Law," by Francis M. Burdick.) One very important point, however, it may be well to mention here, namely: the signing by an agent of any negotiable instrument or contract under seal. It is a safe rule for him to pursue to sign the name of his principal, by himself as agent; as, for instance, "James Jackson, by Thomas Jones, Agent; " not "Thomas Jones, Agent, for James Jackson." This is to avoid personal liability on the part of the agent. Agent de Change. The French term for a stock broker. Agio. (There are various other ways of spelling this word.) The rate of exchange between the moneys of two countries; also the percentage of difference in values between two different moneys in the same country. For instance, a paper currency in some country may not be accepted at its face value in exchange for metallic currency. The percentage by which the latter exceeds the former in value is known as agio." The percentage in value at which the paper currency is accepted below the metallic currency is called "disagio; agio" representing a premium upon a better currency, and disagio" a discount upon a depreciated currency. The wear and tear, or abrasion of a metallic currency is also called "disagio." 66 Agiotage. This is a foreign term having commonly two meanings: First, the rate or price of "exchange; " second, speculation in stocks, bullion, exchange, etc. 'Defined by the Supreme Court of the United States. 2 "The French stock market has since (1795) remained under official supervision, although alongside of the seventy official agents de change, occupying the parquet, has arisen the unofficial board known as the coulisse. Several legal conflicts have occurred between the privileged brokers and the coulisse, which led in 1898 to the reorganization of the stock exchange and the prohibition of dealings on the coulisse, except in certain classes of securities.". The Principles of Money and Banking, Charles A. Conant. Agricultural Chemical. American Agricultural Chemical Co. (Chemical fertilizers and by-products.) Aj. The "ticker" abbreviation for "adjustment." A. J. O. J. April, July, October, and January; interest or dividends payable quarterly, beginning with April. Allonge. When checks, promissory notes, or similar negotiable instruments have their backs entirely covered with indorsements, a slip of paper, called an "allonge," is often attached to receive any further indorsements. All or Any Part. The next subject explains this in part, to which it is the opposite, as the condition is that any amount, or even all, of the issue may be sold to the successful bidder. All or None. This can best be understood by first reading "Sealed Bid." "All or none " is a condition imposed by the bidder for an issue of securities, by which it is understood that in the event of his bid being accepted, he is to take the entire issue, but no lesser amount. Or the seller of the security may stipulate that the successful bidder shall be bound by this same condition. Allotment Note. Signed by a seaman, giving authority for the payment of a portion of his wages from time to time to some other person. Alloy. In coins, an inferior metal mixed with one of greater value, to harden the latter. Our gold coins have a 10% alloy of copper and silver, while silver coins have 10% all of copper. All Round Price. Includes cost and charges of every nature. American Rails. The general foreign particularly London name for United States railway shares. As a rule, however, railway shares which are traded in upon the New York Stock Exchange are those referred to. Amortise. To extinguish a debt, gradually; sometimes by payments into a Sinking Fund, sometimes by installment or serial bonds. To amortise the premium at which bonds are bought means to charge off annually or at each coupon period a sum sufficient to reduce the premium value to the par value at maturity. This sum is always the difference between the bond values as shown in Bond Values Tables at successive coupon dates. Anaconda. Anaconda Copper Mining Co. Ancillary Receiver. A second, or assistant receiver, who manages the property situated in some State other than that in which the receiver" (principal one) gets his authority. |