Milford chronicle., 1922-11-24
The Method Of Merchandising
Securities.

In the commercial world, the homes
, manufacturer stands behind his Pre-
lduct, guarantees it, makes exchang
; if necessary or refunds the purchas
price. There is a Moral Issue benin
modern merchandising in PRACTICAL
every line of business excepting bond
and stocks.
Let the buyer beware" was the oil,
time slogan of the horse trader. /
has been discarded by practically al
lines of business excepting the stool
market. Does the stock or bond mar
ket guarantee that market" Valut
will always equal the par value? 1
does not.
The Stone Plan of Investment Ser.
Company, Widener Building, Phila.
delphia, is a successful attempt tC
market preferred stocks for the ex-
pansion funds of established going
concerns only, putting a Moral Issue
behind the securities on the underly-
ing principles of modern merchandis-
ing.
The purchase of any security that
is subject to constant huctuation or
change of price is a speculation,
whether it is a bond, a preferred
stock, a common stock, an oil lease
or promotion share; or whether it
is listed" on the New York Stock Ex-
change, the Curb Market or has no
listing at all. Every security on
which quotations are issued, daily or
from time to time, is a speculation, in
which you may either win or lose
The only difference between
them lies in the degrees of risk and
the wide or narrow margin of fuctu-
aticn.
One who speculates, either in mar
gins or in actual certificates, must
realize that if he must sell, he will
only receive the market price, which
may be very much less than the par
value. If you buy it to-day you may
sell it next week at a different price,
possibly more and possibly less than
The price at which you bought it, al
though its intrinsic OF actual value
will not have varied appreciably. The
Stock Market price, therefore, is not |
IN actual measure of value, but only |
he measure of what someone is will !
ng to pay for stock which somebody |
S forced to sell or thinks he had bet
er sell for fear the price will go
lown before it goes up.
There is speculation every day in
liberty Bonds which are undoubtedly
Torth 100 cents on the dollar, if any
hing in the world is. They are abso-
utely safe, as safe as the United
tates Government. Yet in Wall Street
nd elsewhere Liberty Bonds are be-
lg bought and sold every day at
luch less than their actual value, due
D various reasons, one of which is I
nat the rate of interest they bear is !
,ss per dollar than the rate of inter-
st on other securities which are also ]
elieVed to be safe. The Bond Mar t
ct is, therefore, not a measure of ac- g
lal value.
Investment, as generally accepted, {
ffers from speculation in that in f
sstment implies a purchase of some +
ling that will continue to yield e
efnite return on the money so in
,sted, and which is less likely to fluc- t.
ate in market price than other Sc S
Irities. b
If investors wish a reasonable per-
anent investment with a certain fix S
return, it then becomes necessary a
decide what securities offer the G
eatest return consistent with safety. q
The Stone Plan is founded on the ci
inciple that every proper induce tC
ent should be used to create addi- eC
NAL wealth by putting money to el
)rk at its maximum earning power pl
with safety both to the per-
q who owns the money and the one u
10 uses it. cl
From the outset the Stone Plan has sc
d one purpose in mind-tO find p
lnd investments for investors. It in
dertakes to give the moderate in OF
;tors the safeguards that only the vi
investor has been able to demand. pa
Before accepting capital stock is dc
IS to recommend to investors, rig C(
investigation is made covering 20 wi
eguards. Companies selected must da
successful going concerns desiring eq
increase their capital only for ex- by
sion purposes. These Companies
st pass the acid test of safety and er
zee to requirements that will insure pa
ontinuation of that safety. rel
fter purchasing the issues of LAT
nd securities, they are kept safe CO.
investors. Representation of the ha
estors and the Company on the WI
rds of Directors in numbers and sto
lority sufficient to uphold the man IN
ment as long as they observe the hal
lirements of the Plan is an abb
tely essential feature. Along with NV
representation goes the daily ad- an
and management of engineers, pal
and interested in watch" ly :
over and fostering the business in tai
to insure the greatest possible