Synopses & Reviews
Purchase of this book includes free trial access to www.million-books.com where you can read more than a million books for free. This is an OCR edition with typos. Excerpt from book: CHAPTER II RAILROAD SECURITIES Railroad securities are of two general kinds: (1) Capital Stock, representing certificates of proprietorship and (2) Funded Obligations, representing certificates of indebtedness. The owner of shares of stock is theoretically a partner in the enterprise, whereas the holder of certificates of indebtedness (whether bonds, notes or warrants) is a creditor. The entire capital stock and funded indebtedness 'of a railroad company constitutes its capitalization. Capital Stock. Capital stock is the primary form of capitalization. Legally, it represents the fund subscribed by owners of a corporation for the purpose of enabling it to conduct business and to obtain credit as a corporate entity. The form of the certificates are in shares usually of $100 each. Some of the leading railroad companies, notably the Pennsylvania, the Lehigh Valley and the Reading have $50 shares. This unit of value of the shares is known as the par value or face value. Shares of capital stock usually represent permanent and negotiable interest in the corporation issuing them. If this interest is terminable, it is only so at the option of the corporation. Though the corporation is theoretically liable to shareholders andcreditors for the money value represented by the stock certificates, this liability cannot be enforced by the shareholders on any maturity date or as long as the corporation is an active, going concern. Shares of stock, however, are sometimes issued under contracts whereby the issuing corporation reserves to itself the right to retire them at its option. This right may be absolute or subject to conditions expressed in the contracts whereunder the shares were issued. Moreover, the whole or a part of the body of stockholders may agree to an alteration of the...
Synopsis
This is a pre-1923 historical reproduction that was curated for quality. Quality assurance was conducted on each of these books in an attempt to remove books with imperfections introduced by the digitization process. Though we have made best efforts - the books may have occasional errors that do not impede the reading experience. We believe this work is culturally important and have elected to bring the book back into print as part of our continuing commitment to the preservation of printed works worldwide.