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National Geographic : 1911 Apr
Contents
When You Think of Investment Think of High-Grade Bonds The more one knows about high-grade railroad, municipal, and corporation bonds, the greater becomes the conviction that they are among the strongest and best secured types of investment. Their marketability, whereby they may be converted into cash either quickly or on reasonably short notice, makes them a valuable asset under almost any circumstances. It is therefore not surprising that discriminating investors are turning more and more to high-grade bonds. Bonds simply represent a mortgage divided into several parts. Each bond of any given issue has identically the same security, the units being usually $1,000, sometimes $500, and in a few cases, $100. The "splitting up" of the mortgage in this manner facilitates distribution, and ordinarily the market for an issue of bonds is broadened in proportion to the esteem in which the bonds may be held by investors in general. This is why modern banking firms are careful to give their bond issues the widest possible distribution among investors. A wide and discriminating ownership of a bond issue is one of the best evidences of confidence in the true value, earning power, and management of the property. Coupon Bonds Each bond has attached thereto small interest certificates, commonly known as " coupons," which are usually payable semi-annually. For example, the coupons attached to a $1,000 5% bond would represent $25.00 each, or the interest on the bond for six months. As the coupons become due they are payable to bearer at the fiscal agency of the issuing company. Ordinarily, the owner of a bond detaches the coupons as they become payable and deposits them at his bank for collection; or he may have them cashed by his investment banker. If you buy bonds through reliable and experienced investment firms, you may feel assured that the bonds are what they are represented to be, and that every precaution has been taken to safeguard the invested capital. Write for Bond Circular No. 438, " Investment Securities " Washington Correspondent: Spencer Trask & Co. CHRIS COX DAWSON 729 15th Street 43 Exchange Place, New York Albany, N. Y. Boston, Mass. Chicago, 11. Members New York Stock Exchange Your courtesy in mentioning the Magazine when writing will be appreciated
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