Search

The article discusses a survey that was conducted between 1931 to 1933 in the United States to determine the extent and importance of the corporate practice of stock repurchasing. The motives for corporate repurchasing of common and preferred stock are examined, as well as the financial incentives for such purchases. The renewed interest in the repurchase of securities for investment purposes during the U.S. economic depression is detailed. Steps taken by the U.S. Treasury Department and the Federal Trade Commission to regulate the inflation of corporate profits stemming from stock repurchasing are discussed.

This article examines the results of a U.S. study ranging from 1919 to 1927 on the relations of preferred stock offerings and redemptions to other phases of the security markets. The article compares the volume of preferred stock offerings with that of other corporate securities, such as industrial, public utility, and railroad preferred stocks and a discussion of the cyclical nature of preferred stock offerings is presented. A comparison and illustration of the similarities between preferred stocks and industrial common stock curves is presented and analyzed. Additional illustrations related to Moody's Investor's Service ratings and preferred stock redemptions are also presented and analyzed. The author offers a series of conclusions on preferred stock holdings based on the data provided.

The article discusses the protective provisions of industrial preferred stock, and the generally accepted restrictive provisions used in connection with the creation of industrial preferred stock. The author looks at some of the risks inherent with the purchase of preferred stock, and the reasons why protective measures are needed. One of the most customary protective provisions of industrial preferred stock is the calling for an annual sinking fund to retire the issue over a period of years. Along with several other provisions, the author discusses the voting restrictions of preferred stockholders.

The article discusses the conflicting issues that arise when a company purchases its own stock on the open market. Two case studies are presented to explain the problems of this type of financing. In the first case study, a company experienced exceptional profits after several years of low earnings. The company decided to purchase its own preferred stock in order to boost its common stock, and did so at the expense of its stockholders. The other company found itself with a surplus after a reorganization, but found it better to pay off its bonds rather than to pay dividends to stock holders. The author shows how these different actions affected the companies.

The article discusses U.S. legislation pertaining to non-cumulative preferred stock. This type of stock has been used for reorganization purposes because it serves to reduce fixed charges when heavy annual payments are not feasible. The article focuses on the legal case involving the Virginia-based Southern Railway Company. Shareholders of the non-cumulative stock sued the company for the payment of past dividends. Dividends on the preferred stock had not been maintained. The judge in the case sided with the Southern Railway Company. He said that the company put its earnings towards corporate betterments and that the stockholders forfeited their claim to all future and present earnings. Analysts say the courts' view is that dividends not declared cannot be recovered.

The article presents a case study pertaining to the securities' distribution in a U.S. public service corporation. The study focuses on the Manster Gas and Electric Company. The company's plans for expansion necessitated the need to sell a security for the requisite funds. It faced the dilemma of which security to issue and whether to distribute it through an investment banker or the company's own salesmen. The utility company chose to issue a percentage of cumulative preferred stock, half of which was sold through its own sales force. The remainder was to be sold through the company's investment bankers. Analysts say the company chose wisely by opting to divide the stocks.

The article discusses changes in the financial structure and financing operations of railroads in the United States between 1913 and 1923. Information regarding the relative proportions of capital stock and funded debt of American railroads as reported by the U.S. Interstate Commerce Commission is analyzed, as well as details related to the railroads selected for the study. Statistical information regarding the public offerings of railroad securities is presented. Loans made to railroad carriers by the U.S. Treasury from 1918 to 1920 are also discussed.

The article looks at the performance of high grade preferred stocks in the U.S. as of April 15, 1928. It recommends stocks which are selling at or near their call price, citing the American Steel Foundries and automobile manufacturer Chrysler Corp. as examples. The senior stocks of food company Corn Products Refining, pier and warehouse operator New York Dock Co., and Southern Railway and other railroad operators are considered.

The article presents an analysis of well protected preferred stocks in the U.S. that yield 6% or more, as of June 1, 1927. Chain store McCrory Stores Corp. is a high grade convertible preferred stock redeemable at 110 or 10 points above the current market. The earnings of American Steel Foundries are running at the same rate as in 1926. Meanwhile, General Outdoor Advertising's Class A stock has high return of more than 7%.

The article discusses investing in U.S. public utility stocks. It suggests that the first test in selecting public utility stocks is the ability of the utility company to satisfy the public through efficient operation and the supplying of good service, as well as observes that the danger of effective agitation for U.S. government operation has faded. It also elaborates on various types of securities, including holding company securities, preferred stocks, convertible stocks, and common stocks.

The article analyzes whether U.S. railroad stocks will increase in 1924 after experiencing a market decline from 1909 to 1921. An outlook for the earnings of railroads in 1924 is given and evidence favoring the positive performance of railroad securities in 1924 is presented. Data shows the non-dividend paying railroad preferred stocks and a comparison of the earnings, prices and yields of railroads. A number of arguments for railroad shares are outlined.

The article presents several recommendations of the U.S. Stock Exchange about the balance sheet and financial statement of shareholders in the country. It describes the text of the certificate of suppositional auditors which may be deceiving. It is also recommended that the number of shares of capital stock, both common and preferred, should be shown in the balance-sheet. Other recommendations focused on retired stocks and bonds, valuation in investments, inventories, or property account.

The article focuses on the recovery of the New York Susquehanna & Western Railroad (RR) Corp. from bankruptcy to solvency under trustee Henry K. Norton. It sasy that the U.S. Interstate Commerce Commission and the federal court have passed a reorganization plan, granting the road to revise its bond structure and issue new common and preferred stock. It discusses problems encountered and the efforts to save the railroad from bankruptcy, which starts of with 2.35 million dollars working capital.

The article discusses the acceptance of common and preferred stocks over bonds by trustees in the U.S. It reports that New York savings banks have also joined the shift toward equities and they can buy preferred and common stocks up to 5 percent of assets or 50 percent of surplus, whichever is less. It also notes that according to a survey by magazine "Trusts and Estates," the amount of money in common trust funds is 838 million U.S. dollars.

The article reports that preferred stock and subordinated debentures are effective in raising capital for national banks in the United States. There are risks in using senior securities, preferred stock, and bonds for raising bank capital. Three advantages of using senior securities include saving on costs and avoiding dilution control. Topics are a brief history of how senior securities were used during the Great Depression, the Reconstruction Finance Corporation, the role of bank capital in inspiring confidence in depositors and bank officials, trends in raising capital, earnings growth dilution, the use of convertible senior securities by commercial banks, and examples of accounting methods for capital.

The article examines the decline in preferred stock as a source of corporate finance from the middle 1950s to the early 1960s, noting that retained earnings and straight debt were popular funding measures. The author argues that corporations should reconsider preferred stock a method of financing expansion. The article explores questions arising from preferred stock, such as limits on investment, protecting shareholder interest, taxation positions and dividend increases. The author provide models for deciding between the use of preferred stock, retained earnings or debt. INSET: SHOULD OUTSTANDING PREDERRED BE RETIRED?.

The article presents information on the political and economic updates of the U.S., as of September 12, 1907. The result of the New York newspaper "Herald's," canvass of Congressional sentiment regarding the Philippines is astonishing in view of the pitifully small number of Republican votes which it has been possible to obtain in the U.S. Congress for bills or resolutions that looked toward Philippine independence. In another economic update, the action of the Interborough-Metropolitan directors in passing the dividend on the $45,000,000 preferred stock should have caused no surprise. When this so-called merger of the subway and street railway lines of New York City, New York, was put through in January 1906, every vicious expedient known to modern finance was adopted in the process.

The article offers information about bond issues market of the U.S. depicting a huge gain which is significant as stock offerings are coming to front. It states that many 1946 bond and preferred stock offerings like last decade represent straight refunding operations which are designed to replace old issues. It reveals that pricing factors have had no impact on corporate borrowers and has also resulted in certain amount of congestion in new issues market.

The article reports that a public offering of 30,000 shares is scheduled by Bell and Howell Co. of its 4.25% cumulative preferred stock and 150,000 shares of issued 10 dollars-par common stock obtained from private holdings in the U.S. The public offering is subject to approval from the Securities and Exchange Commission (SEC). The company is also planning to add new products to its prewar product lines and is still growing.

The article reports that Tenneco Inc. is planning to buy the remaining stocks of J.I. Case Co., after it purchased Case's 57 percent of common stocks and 65 percent of preferred stocks in 1967. It states that Tenneco wants to change the sales mix of Case from 65 percent farm machinery and 35 percent construction equipment, to 75 percent construction and 25 percent farm. It mentions that Case has put its short-term bank debt on a long-term, and increased working capital to 7 million dollars.

The article focuses on the growth of private label trade in small store chains in the U.S. It says that Topco Associates Inc. has been privately abetting the trend with members, such as Weingarten Inc., buying 55,000 dollars' worth of common and preferred stocks. Furthermore, Topco brands offer two grades of food in frozen and canned lines. Meanwhile, studies conducted by J. O. Peckham of A.C. Nielsen Co. indicate that major advertised brands accounted for around three-fourths of the food sold.

The article examines the performance of U.S. preferred stocks in 1930. According to the author, although fixed-interest obligations have regained a significant measure of the popularity that they lost in 1929, they have not yet caught the interest of new investors to the extent that many investment dealers had projected. The author adds that while institutional investors are selecting bond securities, a large part of the general public that have funds to invest are paying attention to stocks.

The article looks at the rise in popularity of non-callable preferred stocks in the U.S. stock market in 1930. Those stocks were known to yield below 5 percent and had been preferred by most investors due to not having redemption prices that limit advances that would happen during money easing periods. Various U.S. companies that have non-callable preferred stocks were shown including American Bank Note Company, American Can Company, and Crucible Steel Company.

The article provides details about investment prospects in bonds "with stock participating privileges" as of February 1, 1930. Special attention is paid to the performance of American International Corporation, Texas Corp. and California Petroleum Corp. Details related to the convertible bonds and dividends of the companies mentioned are presented as well.

The article looks at convertible preferred stocks in various industries as of July 1929. Topics discussed include the tendency of investors to be more cautious, traders giving more attention to short term bonds or convertible issues, the advantages of senior shares that represent a call on common stocks and a comparison of senior stocks from various industries including Brockway Motors, Eitington Schild, Ludlum Steel and Minneapolis-Moline Power Implement.

The author discusses issues in the U.S. stock market as of mid-July 1928. He examines the issue of buying on a margin. He cites that buying on a margin is similar to buying a house in which just a part of its cost is paid and the balance put on mortgage. He presents as example the American Hide and Leather preferred stock.

The article provides an assessment of preferred stocks in the U.S. as of February 1928. American Car & Foundry's annual average share earnings in the last decade have been 25.99 dollars. The net quick assets of Mid-Continent Petroleum as of August 31, 1927 have exceeded the par amount of bonds and preferred stock. There are 164,991 shares of Purity Bakeries, a class A stock, entitled to cumulative annual dividends of 3 dollars per share.

The article describes a number of more or less active, listed industrial preferred stocks in the U.S., along with information on their relative investment position as of November 1927. They include mining, smelting, and refining company American Smelting & Refining, tobacco company American Tobacco, and car tire manufacturer B.F. Goodrich.

The article recommends 1927 stocks expected to provide good yields. Chrysler Corp.'s preferred stock is considered one of the few automobile stocks that are doing well despite intense competition in the industry. The preferred stock of agricultural implements manufacturer Deere & Co. is considered suitable for inclusion in diversified holdings despite its fluctuating price. Artificial ice manufacturer American Ice's preferred stock is considered a good bet due to the company's growth.

The article takes a look at the expansion efforts of the American Gas and Electric (A.G. & E.) Company in the Midwest U.S. in 1927. According to the author, A.G. & E. subsidiaries showed gross earnings of more than 72 million U.S. dollars in 1926. The author adds that A.G. and E. dividends on preferred stock were 2,336,522 U.S. dollars with a balance for the common stock of 10,677,134 U.S. dollars.

The article examines the use of preferred stocks as an aid in earning income in 1927. According to the author, preferred stock prices have been working irregularly higher since the close of 1921 with the average high grade issue yielding only about 5.5 percent. The author adds that the preferred stock market is high and the chances of further gains in the best grade securities are limited.

The article presents U.S. stock market advice as of June 15, 1926. It looks at the attractive investment opportunities offered by preferred stocks, which are selling at a higher yield with better earnings prospects. A discussion of the advantages of investing in preferred stocks is provided. A list of selected preferred issues, along with their dividend rates, earnings in 1925, and yield is presented, which includes Associated Dry Goods, Metro-Goldwyn, and Bethlehem Steel.

The article discusses preferred stocks, that offer the combination of higher yield obtained in common stocks and the increased safety available in bonds. The author explains that the preferred stock group does not command as much as the public interest enjoyed by bonds or common stocks as it represents a smaller volume of capital outstanding, and the average man with capital either opts for high degree of safety or speculative possibility.

The article discusses the recovery of diversified utility preferred stocks in the U.S. in 2013. Topics covered include the improving trends in public service, increase in earning power and impact of industrial expansion on the recovery. Also mentioned are the effects of depressions on the stocks and public service corporations.

The article offers information on preferred stocks ideal for investors in the U.S. in 1922. Topics discussed include several companies with high-yield preferred stocks including Allis Chalmers, Baltimore & Ohio Railroad Co. and American Ice, the dividends that these stocks provide, and the earnings of Associated Dry Goods. Also mentioned are the yields generated by Philadelphia Co., Mack Truck and Bethlehem Steel.

The article presents a diversified list of industrial preferred stocks in the U.S. that yield nearly seven percent as of November 1919. These stocks include Allis-Chalmers, B.F. Goodrich, Kelly-Springfield Tire, National Enameling, Pressed Steel Car, Studebaker Corp., and U.S. Industrial Alcohol. Investors are advised to purchase these stocks as a group to obtain the additional protection of diversification.

This section offers news briefs on money and the markets in the U.S. as of June 20, 1936. A plan to redeem the 50,000,000 U.S. dollars preferred stock has been adopted by directors of the Chase National Bank. George F. Baker has resigned from the board of directors and membership on Big Steel's finance committee. U.S. Steel is estimated to have earned more than 10,000,000 U.S. dollars net in April and May, about 70 centavos a common share after allowing for preferred dividends.