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tions that members carry out on their own account, but any orders that come in from clients are attended to as usual.

There is yet another class of security in London, besides bearer and registered, namely, inscribed stocks. These are chiefly government and municipal stocks, and British consols are included among them. Inscribed stocks can only be transferred by the actual attendance of the transferrer, who is identified by his broker as the real owner of the stock, or by a power of attorney executed by him in favor of his broker.

Modern tendencies appear to be in favor of the growth of bearer securities, owing to their more convenient handling, and since the strong prejudice in their favor which exists abroad gives them a freer market on the continental bourses, it is becoming usual to give holders of inscribed and registered stock the option of obtaining bearer certificates. This has long been done in the case of British consols, of which foreign investors frequently hold large amounts. It should be mentioned that the settlements in consols and the other securities dealt in in the consols market are not fortnightly but monthly. A great deal of the business in these stocks, however, is carried out for cash, and is settled at once by immediate transfer and payment.


A daily list is published by the managers of the stock exchange under the authority of the committee, giving the prices, at 3.30 p. m., of about 5,000 securities officially quoted. It also gives the amount, authorized and outstanding, of each security, and states its face value and the

amount paid up on it, the date at which it was last ex dividend, and the amount of the dividend then deducted. By the side of the quotation is a space, in which are printed any “marks” or records of business done that members may wish to have officially reported. These marks by no means cover all the business done, for there is no obligation on any member to mark every bargain that he transacts; and though some old-fashioned brokers adopt the practice of marking all their business, as far as possible, it is the exception rather than the rule for a bargain to be marked. The marking is done by the insertion of a slip of paper with the security dealt in and the price dealt at, and the name of the firm marking it, into a box provided for the purpose. The note is transferred by an official to the marking board, which is thus during the day a record of actual bargains, or some of them, and is finally printed in the Official List.

Before a security can be granted a quotation in the list certain formalities have to be observed, which are set out as follows in an appendix to the rules of the committee:


The following documents and particulars should be sent to the secretary of the share and loan department when application is made for a special settlement:


A specimen of the scrip or bond.

A copy of the prospectus, circular, or advertisement relating to the issue. A statutory declaration stating1. The amount allotted (a) to the public, (b) to


2. The distinctive numbers and denomination of

each class of scrip or bond. 3. The amount paid up thereon. 4. That the scrip or bonds are ready to be delivered.


The certificate of incorporation.
A specimen of the share certificate.

A copy of the prospectus—the statement in lieu of prospectus as filed with the registrar of joint stock companies-circular, or advertisement relating to the issue.

A specimen call letter.

Certified printed copies of contracts relating to the issue of shares credited as fully or partly paid. A letter from the secretary of the company stating

1. That the share certificates are ready to be issued. 2. The distinctive numbers of the shares allotted

(a) to the public, (b) to the venders. 3. The particulars of the company's capital. 4. The nominal amount of each share, and the

amount paid in cash or credited as paid on

each share. 5. In cases where the whole of the capital has not

been issued at the time the application is made, whether the unissued shares are venders' shares or are held in reserve for future issue.

STOCK OR DEBENTURE STOCK OF NEW COMPANIES. A specimen of the scrip or stock certificate.

A copy of the prospectus—the statement in lieu of prospectus as filed with the registrar of joint stock companies-circular, or advertisement relating to the issue. A letter from the secretary of the company, stating: 1. The amount allotted (a) to the public, (b) to

2. The amount paid in cash per £100 stock.
3. That the scrip or stock is ready to be issued.




1. That the prospectus

Shall have been publicly advertised;
Agrees substantially with the act of Parliament or

articles of association;
Provides for the issue of not less than one-half of

the authorized capital and for the payment of 10

per cent upon the amount subscribed; ; If offering debentures or debenture stock, states

fully the terms of redemption. In cases where a company has sold an issue of de

bentures or debenture stock which is subsequently offered for public subscription either by the company or any subsequent purchaser, states the authority for the issue and all conditions of

sale. 2. That two-thirds of the amount proposed to be issued of any class of shares or securities, whether such issue be the whole or a part of the authorized amount, shall have been applied for by and unconditionally allotted to the public, shares or securities granted in lieu of money payments not being considered to form a part of such public allotment.

3. That the articles of association, and the trust deed where such is required, contain the provisions specified hereafter.

4. That the certificate or bond is in the form approved.


Articles of association should contain the following provisions:

1. That none of the funds of the company shall be employed in the purchase of or in loans upon the security of its own shares.

2. That directors must hold a share qualification. 3. That the borrowing powers of the board are limited. 4. That the nonforfeiture of dividends is secured. 5. That the common form of transfer shall be used.

6. That all share and stock certificates shall be issued under the common seal of the company and shall bear the signatures of one or more directors and the secretary.

7. That fully paid shares shall be free from all lien.

8. That the interest of a director in any contract shall be disclosed before execution, and that such director shall not vote in respect thereof.

9. That the directors shall have power at any time and from time to time to appoint any other qualified person as a director either to fill a casual vacancy or as an addition to the board, but so that the total number of directors shall not at any time exceed the maximum number fixed, but that any director so appointed shall hold office only until the next following ordinary general meeting of the company, and shall then be eligible for reelection.

10. That a printed copy of the report, accompanied by the balance sheet and statement of accounts, shall, at least seven days previous to the general meeting, be delivered or sent by post to the registered address of every member, and that two copies of each of these documents shall at the same time be forwarded to the Secretary of the Share and Loan Department, the Stock Exchange, London.

11. That the charge for a new share certificate issued to replace one that has been worn out, lost, or destroyed shall not exceed 1 shilling.


Trust deeds should contain the following provisions:

1. Where provision is made that the security shall be repayable at a premium, either at a fixed date or at any

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