Or, to make the matter
plainer to the uninitiated, suppose an individual wishes to
lay out 500L. in the stock-market. If he orders his broker
to purchase into the British funds, the latter will buy him
about 535L. three per cent, consols; and the
brokerage, at one-eighth per cent, will be about 13s. But
if the same person desires to invest the same sum in the
stock of a new Mine or Rail-road company, which is divided
into 100L. shares, on each of which say 1L. is paid, and
there is a premium of 1L. (as is the case at this moment
with a stock we have in our eye) his broker's account will
then stand thus:--
Bought 250 shares in the ---- Company.
First instalment of 1L. paid L250 0 0
Premium L. per share 250 0 0
500 0 0
Brokerage L per cent, on 25,000L. stock 62 10 0
562 10 0
Which will leave Mr. Adventurer to pay 62L. 10s. to his
broker, and to pay 99L. more on each of his 250 shares, when
the------company "call" for it!
Or, let us reverso the case, and suppose our speculator,
having been an original subscriber for 100 shares in the
---- company, and having consequently obtained them for
nothing, wishes to sell, finding them at a premium of 6s.
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