European Stars and Stripes (Newspaper) - July 17, 1968, Darmstadt, Hesse Page 16 the stars and stripes. Rr.-,. O i Hui Al i editor s note women arc prov ing in every Field they know How to make Money and we All know the know How to spend it but do women know How to invest Money this articles written by one of America s Foremost women stockbrokers mrs. Herta Hess Levy of Chicago. Twentieth Century woman must be equipped for the age in which she lives. Her functions Are a Many and As Complex As the demands on her time. Yet she should always be completely a woman with the knowl Edge that intelligence animates rather than Deti ots from her Charm and per be Well oriented financially is no longer a Choice for her but a gives her additional poise and a True sense of Security to know that she can plan her financial present and future by herself if need be or in conjunction with partners business or emotional. In Short she must understand an function efficiently in the economic environment in which she woman is a potential investor. Women today Are waking up to the economic world. Women collectively can take credit for Well Over 80 percent of consumer spending in the . They own almost half the shares of common Stock held by individuals and almost half of All the real Are the beneficiaries of More than half of the life insurance policies written in addition to owning their own policies Worth billions of dollars. Women also hold Over one third of the nation s paying jobs and collect 20 percent of the wage and salary income. Bui they do not for the most part control their own wealth either because they choose to let someone else Man age their Money or because they have inherited funds but do not control the ruse. Often the woman is totally out of touch with the Money world. Her Lack of understanding of matters Finan Cial is almost alarming. She May be Well educated up on the theater literature Art have the last word on Rais ing children or decorating her Home hut this woman s knowledge of economics centers around faced with investment Deci Sions this woman would buy Stock Ina pastry company because its cake tastes Good sell an airlines Stock be cause her last flight was delayed hang on to a Stock for dear life because twas Given to her As a wedding present. Such women fall to grasp the fundamentals of investing. Any reasonably intelligent woman can learn her Way around the Money world and at the same time preserve he feminine nature. In so doing she can achieve not Only greater financial Secu Rity but greater emotional Security. She will become a More interesting com Panion for the intelligent men and women around Best Way to Start an effective Long Range investment plan is to seek out Basic information some of it you will find Here. Next get the advice of experts on where when and How to in Vest your Money. Finally and perhaps most importantly be informed and djs by Herta Hess Levy for Nana a ruminating about the advice you follow and the securities you buy. Advisers could include brokers in vestment Counselor banker accountant Attr Ney. Securities Market the collective investments of millions of americans finance the business world. Every individual has an Opportunity to own an interest in american Enterprise and to share in the economic growth of the relies on the Public for funds to buy Plant equipment and materials for Consumers to buy what is produced. The Public depends on business for goods services and jobs. Different industries depend on each other. Government and business Are interdependent. Consider the relationships betwee Farmers labor management govern ment and Consumers. None could exist and function financially or otherwise without the other. The financial relationships Between the business world and the investor Are carried out primarily through the securities Market. It is Here that the Public invests the Money that finances Busi Ness expansion and growth. It is her that the Public seeks to share in the growth of the Economy and of the companies in which it invests. Essentially the securities Market is place to buy and sell securities. Generally speaking you can Trade two types of securities Bonds and stocks. Bondholders Are actually creditors of the corporation issuing the Bonds. As such they Are entitled to a fixed rat of return on their investment which must be paid whether business is Good or bad and paid before stockholders receive any on the other hand Are part owners of the business and share in the profits. The stockholder s return on his investment depends on the com Pany s earnings his returns Are High when business is Good and Low or non existent when business is poor. Any securities you buy will be traded either through a Stock Exchange or Over the counter. A Stock Exchange is a enter for trading the securities listed on that Exchange. It operates like Atwo Way auction buyers and Sellers compete. The buyer who makes the highest bid buys from the seller with the lowest offer when the two agree on a Price. Some 3,000 securities Are traded in this Way on Stock Exchange sin the United states. There Are 14 sex How to be smart with Money c for men too 3 petticoats changes registered with the securities and Exchange commission. The new York Stock Exchange some times called the big board1 is the largest organized securities Market inthe nation. Securities must be listed to be Trade Don the nose. The Exchange lists some 1,900 issues stocks and Bonds of about1,200 business enterprises including most leading corporations in the country general motors. Ford Sears Roebuck Standard Oil . Steel. Together the companies listed on the big Board account for about half of . Production each year provide jobs for about cent the bid of 21however each broker wants to get Thebes possible Price for his customer so instead your broker bids 21. An eighth of a Point below the current offering Price. Seeing an Opportunity to sell s 100 shares an eighth of a Point higher than the current bid his broker shouts sold and the trans action is made. The Over the counter Market provides a place to negotiate the Sale of enlisted securities that is Stock Sand Bonds not listed on any Exchange. While listed securities May also be stars ind str pts 15 million people pay stockbrokers Over half of All dividends distributed in the country and pay approximately $15 Bil lion in taxes each year. The american Stock Exchange rank second among the exchanges in the . It is similar to the nose in operation but its listing requirements Are not As stringent. The american Stock Exchange has been a particularly effective marketplace for newer Stock issues although its listings include Large Well established corporations As Well a smaller new businesses. B using and Selling securities on any Stock Exchange is a speedy efficient process. You can buy and sell shares in corporations almost As easily and quickly As you can Deposit Money in the Bank whether you live in a City in a suburb or on a farm or in Europe. Here s How it works. Suppose you live in St. Louis and want to Bay 100 shares of a common Stock listed on the new York Stock Exchange. At about the same time or. Thompson i Detroit a Complete stranger to you decides to sell 100 shares in ask your broker for the quote on a and with the Aid of an electronic device on his desk he is Able within seconds to Tell you that the Stock is 21 /4to 2l last 21 /4. That Means that 11% is the highest anyone is wining to Payfor a at the moment 21ty is the lowest anyone is willing to sell it for and thelast Sale was 2iy 4. With this information in hand you instruct your broker to buy 100 shares of a at the Market the Best pos sible Price at the time. In the mean time or. Thompson has Given his broker instructions to sell 100 shares of a at the Market. The two orders Are wired to new Yor where floor brokers for the two firms take them to the Post at the Exchange where a is traded. There they learn that a is quoted 21 /4 to 21ft. At this Point the broker representing you could accept the offer of 21ft or the broke representing or Thompson could a editor Mary Neth traded on the Over the counter Market this Market deals primarily in unlisted securities the distribution of new issues and the marketing of exceptionally Large holdings of a single Security. The securities of approximately 40,000 companies Are quoted on the Over the counter Market. The Over the counter Market is makeup of some 4,300 securities houses and 4,700 Branch offices. Trading is Don Over a vast network of telephones. Buying and Selling in the Over the counter Market differs from transactions on the Exchange. The oct is essentially a negotiated Market. Suppose you want to buy 30 shares of by Corpora Tion which Sells on the oct Market. You Call your broker and ask for the Market in that Security. This Means you want a Price quotation. Your broke will Check the Market for that Stock by getting in touch with the House that make a Market for by Corpora Tion. He asks for bids and offers this Way he finds out which House has the highest bid Price and the lowest offering Price so that he ran i t highest Price if you Are a seller Ana the lowest Price if you arc a first category the common Stock represents ownership. Machinists Oak in housewives doctors 1 a eds nurses bus Drivers school eau b you name the category May my a corporation via the stockholder Ouie. One in every 10 persons or Al mately 20 million people m this Toun try is a shareholder and Over 10 lion of them Are women and is. In Type of equity interest is a met completely confined to democratic a us Why do people invest in stork.-,. Hon Are just a few reasons to put children through Colloq to provide funds for a combo Taou obtain dividend income. To provide a hedge against hum a to accumulate funds and provide financial Security. Normally preferred stocks do not Norma by offer the growth potential found m tart fully selected common they Ore noted for relative the stars and stripes Page 17 the Bear and Bull facts e Buu by phrases describing Market trends and what they a Long upward trend in Stock prices. Market a prolonged decline in prices. Zip was Market no Clear Bull or Bear or faction declines running counter to a major upward f$ep4 rallies and Vaidic a flair my a major downward trend. Consolidations and building base Leveng off Peylo Dowhen prices tend to Stabilizer before proceeding Oft a Spe Del sonnet Market movement lasting about a month they occur within intermediate trends. Short term movements occurring weekly or daily. Ability. As far As risk goes preferred stocks fall Between common stocks and Bonds. The preferred shareholder receives his dividends before common Stock talking about common stocks Price movements Are of the most in Terest and consequence. Despite the in Herent difference in each company Suslock Price movement there seems to be a Strong tendency of All stocks Torise and fall together. Hence the commonly heard question what did the Market do today financial eddies factors influencing Stock prices and the Market As a whole Are profits the immediate driving Force behind Stock prices. Anticipated higher profits should cause a Rise in the Price level while anticipated lower profit should cause a slump. Appraisal of Price Levels and Busi Ness stability for example anticipated Cut Downs in defense spending could spell Over expanded production. This could result in surplus supplies unemployment and a business slowdown. This in turn would Lead to sliding Price Levels and should have an Adverse effect on Stock prices on the credit policy ample Bank credit lends itself to potential business expansion thereby creating an additional demand which May result in arise in Stock prices. Stringent credit policies could have the opposite pertaining to a particular com Pany can affect prices too. For in stance you buy a Good Oil Stock for income and appreciation. What Siljee Delight when you Wake up one morning and read your morning paper at break fast. You Haven t quite rubbed the sleep out of your eyes when you see the headline in the papers. The financial Page says your Oil com Pany has just discovered a huge new Oil Pool or Ore Deposit. This will make the Stock go up most Likely if later news brings disappointment As to the size of the Deposit or if time brings news that nothing will happen to add to earnings until 1995this May prove to be a Short lived spurt in that can affect the Price of individual stocks include newly found methods products resources or Tal changes in a company s capital Struc we such As a Stock split or a new Issue frequently bring about a Price change. A Stock split As a Rule makes for Wagher Market there Are Ever so Many examples. Splitting a Tock la some what like dividing an Apple into sections you do not get More Apple you imply have raft ,supposing a Stock with it Market value of $50 splits two for one the per son previously owning one 150 share f0ow owns two 125 shares but the values Sun $50 no matter How you slice however there Are some advanme8ufor stance the dividend which Jay have been $1 a share on the old a fest Mav now be raised to 55 cents. Jne Basic reason for a Stock split is131 investors seem to show a decided be for stocks Selling at around under. Therefore a split bring a Stock Down to this Price Range could stimulate trading and bring the Stock Price up. Another Factor not to be ignored i considering Stock splits is that companies prefer widespread share owner ship it makes for an Active Market. Stock splits insofar As they c re a t Ean ample Supply of outstanding Stock also tend to help keep Price change orderly and at a minimum. New issues depending upon the particular situation of a company might mean different things then effect on the Market Price could either be Good or anticipated merger frequently affects the Market Price either change in earnings often affects Market policies May also affect the Price of stocks. Dividends Are Likely Togo up when earnings Are up and exceptionally Good earnings May result Inan extra dividend payment. When earn Ings Are Down there May be no dividend at All for common shareholders. Growth company dividends May below or non existent because earnings Are needed for expansion and improve ments. However the Low dividend is compensated by capital appreciation i the company really grows. Bonds Mutual funds the Bondholder s claim on earn Ings and assets ranks ahead of both preferred and common Stock the company Falls to meet these terms the Bond Holder Caa resort Tole Al action forcing foreclosure of mortgage Bonds or receivership if Bonds Are debentures. Generally Bonds Are the safest form of securities investment depending of course on the credit standing of the issuing company government or Muni of companies with High credit ratings Are so Well protected that you Are almost sure to receive full payment of interest and principal. Bonds normally sell in denominations of 11,000. Rice and interest fluctuations Are related primarily to prevailing Money rates when credit is easy and interest rates Are Low Bonds Are traded at High prices and offer Low returns. When credit is restricted and interest rates�0 up. Bonds become a More important source of credit. They sell at Lowe prices and offer higher yields. Convertible securities typically refer to Bonds or preferred stocks which can be exchanged at the option of the owner for common stocks of the issuing . The conditions by which the Exchange is made Are spelled a wow a Yettaw securities offer the Opportunity to have your cake and eat it have the safety and relative Price stability of the Bond or preferred Stock together with the provision for sharing profits and growth through converting to common Stock if this should become t get excited you do pay a Premium for the advantage of c aver Sion How much or How Little depends upon the value in if it is very close to the value in Stock the Premium May be great if it is quit Remote it May be very Little. Another Way to invest i through an investment company a com Pany which uses its capital to investing other companies. There Are two principal types the closed end and the open end or Mutual fund. Shares in closed end investment companies gome of which Are listed on the new York Sloe exchiu1ge,Var
