TLDR: This chapter argues that the traditional approach to common-stock investment is no longer effective due to increased business instability. The chapter explores three general approaches to investing in common stocks, including investing in growth companies based on their potential for steady …
TLDR: Common stock analysis has undergone significant changes over time, shifting from an emphasis on stable dividends and tangible assets to a focus on future earnings and speculation. The introduction of the new-era theory led to the abandonment of traditional investment principles and a relianc…
TLDR: The article suggests approaching the field of speculative senior securities through common-stock approach to understand the risk involved. While low-priced bonds and preferred stocks are associated with corporate weakness, they offer contractual obligations that could provide advantages. Wor…
TLDR: Changes to the conversion privilege during the life of an issue are commonly made to either decrease the conversion price, which protects the holder from "dilution," or to increase the conversion price for the benefit of the company based on a sliding-scale arrangement. However, when the sli…
TLDR: The article delves into the technical aspects of senior securities that have privileged features, with a particular focus on conversion, participation, and subscription. Three critical components of such privileges are identified, namely the extent of profit-sharing, the proximity to realiza…
TLDR: The investment record of privileged senior issues is unimpressive. The article discusses examples of opportunities for such issues from various fields and advises investors to have a clear reason for purchasing them. It highlights the importance of investing in convertible issues with suffic…
TLDR: The traditional idea of permanent investment is being challenged due to the need for constant supervision of securities. US Savings Bonds are a good option for fixed-value investment, but other options may be necessary for institutional investors or those with moderate income from investment…
TLDR: Protective provisions in bond issues, including equal and ratable security, and prohibiting new prior liens, are important for added safety. Working capital requirements and penalties for nonobservance are suggested for industrial bond indentures. Investment trust bonds require protective p…
TLDR: The chapter discusses provisions to protect bond and preferred stockholders, remedies for nonfulfillment of a company's obligations, and recent laws to speed up the readjustment process for insolvent companies. The article highlights the contradictory legal rights of bondholders, the tendenc…
TLDR: The article discusses income bonds as a financial instrument with less discretion than preferred stocks, often issued during corporate reorganizations with poor credit standing. It also highlights the importance of guarantees in fixed-value investments and how joint and several guarantees of…