. Legislative regulation of railway finance in England . *rvG*iv ►In- ference capital werq/ikujDuie.!-anoth-er—as 56 w&& to 44, while in 1870 and 1871 the relative proportions were reversed, becoming 43 to i2 57 and 42 to 58 respectively. Such changes might have beenbrought about by two entirely different causes. In the first place,when railway enterprise became established, it might be reasonablyexpected that the preference capital would tend to increase morerapidly than the ordinary. When a railway pays large dividendson its ordinary shares, it car raise money on easy terms by issu-ing prefe
. Legislative regulation of railway finance in England . *rvG*iv ►In- ference capital werq/ikujDuie.!-anoth-er—as 56 w&& to 44, while in 1870 and 1871 the relative proportions were reversed, becoming 43 to i2 57 and 42 to 58 respectively. Such changes might have beenbrought about by two entirely different causes. In the first place,when railway enterprise became established, it might be reasonablyexpected that the preference capital would tend to increase morerapidly than the ordinary. When a railway pays large dividendson its ordinary shares, it car raise money on easy terms by issu-ing preference or debenture stocks at fixed rates of seems to have been largely the cause in England. On the otherhand, when a company pays little or no dividend on its ordinaryshares, it will be compelled to resort to the issue of such pre-ferential shares for raising money, in order to avoid heaviersacrifices. ql. Companies Clauses Act, 1863,26 & 27 V. c. 118, s. Capt. Tylers annual report to the Board of Trade, 1873, Another class of shares or rather another nomenclature given to the ordinary shares, known as preferred and deferred shares, Cas*e into vogue since 1868. These, in reality, do not constitute any separate class of shares, hut simply represent two divisions into which the ordinary shares are divided. All the rules governing the ordinary shares are also applicable to these sre-trsiri^ preferred and deferred stocks, ex-govern cept that special rules have been adopter to^the process or, andthe conditions under which, the division may be executed. The f irst/\instance of ( stock*splitt ing , by whi ch the -drir* vicidOn t^e ordinary shares/linto preferred and deferred0pwp«H4©Rs 13 i-s. kTungp, took place in 1854 in the case of the Great that year £ 12 having been paid on each £20 share of thatCompany, a panic seized upon the public mind and grave doubts wereentertained as to whether the Ircldly competitive scheme of thatcompan
Size: 1367px × 1828px
Photo credit: © Reading Room 2020 / Alamy / Afripics
License: Licensed
Model Released: No
Keywords: ., bookcentury1900, bookdecade1910, booksubjectra, booksubjecttheses
