If the business' success is beyond all question, then the treasury stock may be divided pro rata between the holders of the other stock, for, until it is disposed of in some way, it is an asset common to the company as a whole.
Each stock certificate tells when dividends are declared; they may be paid quarterly, half yearly, or annually.
The best way in which savings can be invested is to use them in the extension of the business in which they were made. The wage earner and the individual on a salary cannot, of course, do this, but any self-employed person -- i.e. the small tradesman, the farmer, the mechanic -- may be able to. Therefore, before looking abroad for a field in which to invest their capital, such individuals should consider how best the money may be used right where they are.
One of the safest forms of investments is bonds, though, as with other forms of security, the rate of interest declines as the margin of safety increases.
If a well-established stock company should wish for any reason to increase its available cash, it may issue bonds, or certificates of indebtedness, bearing from four to five per cent interest and payable semi-annually. These bonds may be transferred in the same manner as stock. They are a good form of security when it is desired to borrow money from the bank, and for many purposes they are as available as so much cash.
Such bonds are issued for a specified number of years and have coupons attached, which are cut off when interest is due and presented to the treasurer of the company for payment.
