The fifth issue of United States Government bonds to raise funds for the World War. Called notes because of their short maturity.

It is often desirable to place the voting control of the stock of a corporation in the hands of certain persons for a definite time. A voting trust is formed, the stockholders agreeing to delegate the voting power of their stock to certain named persons, called voting trustees. These forms of control as vested in a board of trustees represent, not ownership of stock, but merely a unified voting power during a specified term of years. Any dividends declared in the meantime go to the owners of the stock, or, more particularly, to the owners of the Voting Trust Certificates. (See next subject.)

Profit; a bonusIf a man buys 100 shares of 3tock for $10,000, and later sells 75 shares at such an advance in price that his original $10,000, plus commission, etc., is returned to him; the 25 shares left standing him nothing, these shares may be called velvet.

A receipted bill or any written evidence of money expended.

This term is generally used in reference to grain, cotton, or agricultural products, meaning the amount on storage in the large centres and what is in transit.

The giving an equivalent in value to the obligation. Formerly there was considerable controversy whether or not, in a bill of exchange or promissory note, it was essential to its validity that value received should be expressed, and there were old cases which decided in the affirmative. In most States this is not the law at the present time, it being well settled to-day that the words are not necessary, for value is implied in every bill, note, acceptance, and indorsement. There is an exception in the case of Missouri, however, where the words value received are essential to the negotiability of a promissory note. In Pennsylvania, it has long been customary to use the words without defalcation in the place of value received, but the words are non-essential. The statutes of the State of Michigan declare that: Every negotiable instrument is deemed prima facie to have been issued for valuable consideration; and every person whose signature appears thereon to have become a party thereto for value.

Those railway companies in which the well-known Vanderbilt family in New York, and other persons associated with them, own either direct control, or control through other companies; and those railway companies in which their direct or indirect ownership is great enough to influence its management, and lines leased to any of the foregoing. Such railway companies, for instance, as the New York Central & Hudson River, Michigan Central, the Cleveland, Cincinnati, Chicago & St. Louis, the Lake Shore & Michigan Southern, the Canada Southern, the Lake Erie & Western, the New York, Chicago & St. Louis, the Boston & Albany, the Rutland, the Cincinnati Northern, the Peoria & Eastern, the Pittsburg & Lake Erie, etc., a list too long to give here.

An example of the use of such an association as the above is that of the Massachusetts Electric Companies, a voluntary association managed by a board of trustees, who hold the title to its assets, consisting of the majority and, in most cases, practically all of the stock of certain street railway and lighting companies. These companies were already in existence and their capitalization fixed, so far as the property owned was concerned, when this association was formed. By the voluntary association plan, shares and notes may be issued at the pleasure of the association, they being secured by the stock of the constituent companies bought and deposited with the board of trustees. This amounts to a virtual consolidation of the several properties, and allows of a greater capital stock and indebtedness than permissible to the companies direct. The voluntary association is unknown to the law, but the subsidiary companies are not, and their integrity is preserved. Each company is amenable to the law and recognized as if the voluntary association did not exist. To make this clearer, suppose a railway company is limited by law to an issue of $100,000 worth of stock. John Jones buys all, or substantially all, of this, and puts it up as collateral for a loan of some greater sum, say $200,000, than the par value of the stock. There is no legal obstacle in the way of his doing this provided he can find somebody to lend him the $200,000.

Shares issued to one who sells property to a company, and in entire or part payment for the same. An English term and custom.

(See Voting Trust.) When a voting trust is formed it may be so arranged that each stockholder deposits his stock certificate with the voting trustees, they issuing a negotiable receipt for the same called a voting trust certificate.

A party that invests in distressed assets. AKA distressed fund.

When distressed assets of uncertain worth are sold at a deep discount. Refer to fire sale and vulture fund.

When trustees have control of a corporation. This seperates ownership and control because a trust has no stock. Refer to legal mechanism, majority, managment, minority, and total controls.

The most power a shareholder can have in a given company as related to their votes.

Means your account. A local account held for a foreign interest. This helps the company do local currency business. Refer to nostro.

A german corporation’s management board. Refer to aufsichtsrat.

When shareholders liquidate a company that has become solvent. Proceeds are paid in order of seniority.

When a company files for bankruptcy. The company may be overseen by a trustee. Refer to involuntary bankruptcy.

Loss incurred from volume imbalances. It can change both quantity and price.

A swap that exchanges realized volatility for fixed volatility. It directy protects the asset or market. This can last 6 months to 5 years.

When strike price and volatility of an option are compared. Investors prefer outofthemoney contracts because they are cheaper. Refer to volatility skew.

The difference between call and put options volatility. Puts trade better than call options. Refer to volatility smile.

The amount a price changes. The more volatile the more risky. It helps determine the value at risk. Refer to standard deviation, vega, variance, skew, smile, and strategy.

A contract cancelled due to fraud.

A strategy that uses volatility rather than market direction. Refer to directional strategy.