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Trusts and a company amalgamation facilitated a way to achievement of economy from scales
Productions, but, if organizational costs of the consolidated companies
Surpassed economy from production expansion, these companies did not survive.
There is nothing surprising that to wide trade in shares of the industrial
The companies trade in certificates of the trusts manufactured in 1880 preceded
Years Sears, "Rise of the Market", pp. 112 - 121 and Navin. Some trusts
Were great enough to support an active market on the shares, and them
Popularity reflected submission what to suppress a competitiveness and is possible, and
Favourably, also that large-scale production is more economic than the small. By the end
1880th years trade in certificates of trusts has found scope. New York
The stock exchange allowed the members to trade in them as not quoted valuable
Papers as was considered that uncertainty of a legal status does
Their unsuitable for quoting at exchange. Though certificates of trusts were considered
Very speculative papers, the history of market prices begins with them and
Dividends on the industrial shares, distinguished from railroad shares
And the public service companies. After 1891, when accepted in
Legal status, their shares have immediately acquired the status quoted on
To the New York stock exchange.
Capital structure in the incorporated trusts was absolutely other, than in
To modern practice. Usual though and not universal practice, was
Capitalisation of the trust of level of incomes reached by the companies in shape
The preference shares which have been thought up as a method of warranting of investments
p. 164 - 167,
Industrial Finance, Practice of creation of corporations in Britain was similar also. See: Cottrell. Ordinary shares were manufactured with allowance for
Risk of eventual losses and prospect of profits in the future. Though at
Capitalisations of railways followed the same scheme, many foreign
Observers believed that usual shares of corporations absolutely "it" or
Do not represent "anything except the sky blue". According to these
Observers, the income of corporations on usual shares was not so much result
Hazardous speculations, how many a consequence unscrupulous it clients.
- and Sirs for the period with 1890 for 1893 transfer twenty eight
Issues of preference shares table
1, Sears, p. 118, Navin and "Rise of the Market". At that time investing bankers familiar mainly with
Railway shares, yet quite trusted in investment dignities
Industrial securities; and they participated in trade only five of
Twenty two issues actively forcing the way on the market. It. P.Morgan,
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