When you see shares quoted as at a premium—say £1 shares at 5s. premium—that means that for every share you would have to pay 25s., or 5s. more than its nominal value.
Debentures, as commonly understood, are mortgage deeds given by railway companies in acknowledgment of borrowed money. Debenture bonds give the holders the first claim for dividends on the company’s receipts.
Preference Shares are shares on which a dividend is bound to be paid so long as the net income is sufficient, even though there should not be a farthing left for the ordinary shareholders.
A Dividend Warrant is the document which entitles the holder of stock to receive payment of her dividend. Dividend warrants may be lodged with one’s banker in the same way as cheques.
Coupons is a term used for dividend or interest warrants attached to bonds running for a fixed number of years. They are usually printed at the bottom of the bond, there being one for every period at which interest becomes due. They must be cut off and presented at the right time to the appointed banker or agent. Many coupons require a stamp, which must be placed at the back, and have the name of the person to whom the money is due written across it.
(To be continued.)
UNCLE JASPER.
By ALICE KING.