Show ACTUAL VALUE OF STOCKS conservative promoters are extremely careful butte miner the average citizen who sees stocks quoted at anywhere arm ten cents to twenty five dollars on the bulletin board of a mining broker is apt to col consider isider the ten cent stock cheap and the twenty five fiva dollar stock high priced As a matter of fact without knowing a good deal of the property owned by a company whether hell held by option bond and lease patent or representation isen sen tation its possibilities its capitalization and the number of shares no intelligent opinion can be formed of the value of a share shara of its stock and without attaching importance to all of these items a statement that a stock selling at a cent a share is cheaper or dearer than a stock is not even evan a guess if a man offered to sell an interest or a share of stock in a company which owned say a hundred dollar bill a buyer would be very careful to make sure what proportion of the company the interest or share represented the same should be done by an investor large or small before buying a shar of mining stock in forming mining companies the first thing usually settled is the capital on n serva tive honorable promoters m make ake the capital what they conscientiously believe tho the holdings of the company to be worth as they stand providing the money necessary to develop and equip the property and put it on a paying basis is raised it is self evident b ba that a mine which cant or never will turned in into to a dividend payer has no value number of shares the next step is to decide upon the number of 0 of shares this is purely a matter choice and convenience with three as a nala efflin capital capitala of 0 mum and no maximum given a and shares of a pir par value of cent each there would be I 1 shares if the shares had a par value of one t mill each there would be 1 shares again if a million dollar corpora tion was actually worth a million millio fi dollars t and there happened to be only three shares i a share at would be like f finding a few hundred thousand dollars but if in 1 stead of three shares there were i shares any price over a cent a share would L be extortionate I 1 fixing the capital and the number ot 01 shares fixes the par value of a share wh which ch is always the capital divided by the number of shares when the stock of a new company is placed on the market the selling k price of the stock is generally made from 10 per cent to 50 per cent of the par value bius sometimes more than par the reason why mining companies as a rule sell shares of their stock below the par value at their introduction tro is to get things started to attract capital to put life into an otherwise dead proposition and with an eye toward selling stock at a higher figure later on |