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TECHNICAL TERMS USED IN BUSINESS.
Acceptance of Stock, is signing the transfer in the Bank Books, by the purchaser or by his or her Attorney. — See Index.
Acceptance of Bills of Exchange. — See form of Refer to Index.
a/c means "account."
Accountant.— It is often convenient to a lady, who is unable from want of health or age, to manage her accounts, to engage an Accountant to come and put all straight. The charge is generally for the whole affair, or so much an hour. — Generally 3s. 6d. to 4s. per hour.
Administrator is one appointed by law to administer to a Will, if no Executor has been named, or the Executor declines to act, or to administer the Estate of a person who has died Intestate, that is to say, without leaving a Will. — See Index, for "Intestate."
Assets are the present money value of a man's property, in contradistinction to his Debts. If the assets are equal to or exceed the debts, the man is solvent ; otherwise, he is insolvent.
Assurance. — See "Insurance."
Balance. — To settle an account.
Balance Sheet — A sheet of paper showing a summary of accounts.
Brokerage is a small percentage or commission paid to Brokers, for transacting money concerns. They are generally employed, as we have already stated, in buying or selling for others.
Back a Bill. — A term seldom used in the usual course of business. It is more especially used in eases where a friend lends his or her money to another, in order to enable the borrower of the friend's name to get the Bill cashed. If the Borrower cannot pay the Bill at maturity, the Backer must. It is generally speaking a dangerous transaction, and should always be avoided, especially by the "inexperienced" and " unprotected" of either sex.
Capital. — Money invested; and property, generally, as distinguished from Income.
Cent., for Centum, or 100.
Commission.— The same as Brokerage.
Consols, abbreviation of Consolidated Three per cent. Annuities.
Coupons are Interest-warrants attached to [-156-] Bonds. They are cut off and presented, as they fall due, to the appointed Banker or Agent. They sometimes require an adhesive Draft-stamp at the back, across which the name of the person to whom the money is due must be signed. — See Index.
Credit. — The side of an account on which payments received are entered. The time allowed for goods bought on trust.
Debenture — A writing under seal acknowledging a debt; a written evidence of a debt due to some person.
Debit. — An entry on the debtor side of an account. A debt.
Discount upon a Bill, is a certain sum deducted from a Bill, when it is paid immediately, instead of at the expiration of the usual term of credit ; therefore the sooner it is paid the better.
Discount of a Bill of Exchange, is the amount of interest at an agreed rate, upon the amount of the Bill, from the day upon which it is discounted to the day upon which it becomes due.
Dividends, are the half-yearly or other payments of interest, on the different Government Stock, as well as on Shares of Railway, Canal, or other Companies.
Cum-Dividend, means that the price of the Stock or Share is with the Dividend, and that the buyer is entitled to it.
Ex-Dividend, or Ex-Interest, means separated from the Dividend or Interest; that is, the buyer of the Stock or Debenture, will not be entitled to the Dividend or Interest then payable or about to be paid.
Cum-New, sometimes occurs, and means with new Shares.
Ex-New, means without new Shares.
Ex-Coupon.— A term used instead of Ex-Dividend or Ex-Interest.
Endorse or Indorse. — To write your name on the back of a Cheque, Order, or other document.
Insurance against Loss by Fire. — To obtain this protection, a percentage must be paid yearly to some Insurance Office. Such percentage is called a Premium. Policy of Insurance, is the legal document, which secures the Insurer from loss, so long as he continues to pay the Premium.
Insurance for Life. — In this case, a certain sum is
paid yearly, for securing the payment of a much larger sum of money upon the
death of a person. If you desire to effect an Insurance, apply to the Agent of
the Insurance Office you select; but before making your selection, consult your
Attorney, or some man of business on whom you [-159-] can implicitly rely, as it is most important to select a good
Life Insurance is of the utmost importance in many cases. It sometimes happens that the death of one party before that of another, will make a considerable decrease in the income of the survivor. In such a case the life of the one on whose death the income will decrease should be insured against the life of the other.
Interest, is a percentage paid for the use of money. By the Rate of Interest, is meant the rate of such percentage. The sum lent, is called the Principal.
Interest, Simple and Compound. — If you lend money for a term of years, with the intention of receiving your interest, not year by year, but in a round sum at the end of the term, there are two very different ways of reckoning what you will get. To explain, by an example :— If the loan be of £100 for 10 years, at 4 per cent., the accu-[-160-]mulated proceeds at "simple interest" would be simply 10 times £4, or £40. But if you reckoned by "compound interest," you would receive more. Each yearly sum of £4 might have been invested as soon as it became due, and interest on every sum so invested would then also be payable. The first £4 would have been invested for 9 years, and the second £4 for 8 years, and so on. Besides this, the interest of these last sums, small as it is, might have been invested. The amount of compound interest, for any term of years, can be readily calculated by arithmeticians. In the above case it would be about £47, but in 100 years, when the simple interest would have amounted to only £400, compound interest would have become no less than £4,950.
|Amount of Account||£5 per Cent.||£7½ per Cent.||£10 per Cent.||£12½ per Cent||£15 per Cent.||£20 per Cent.||£25 per Cent.|
Instalment.— W hen a Loan is contracted, the subscribers to it are called on, to pay certain fixed sums, called Instalments, at stated times, till the whole is paid. It has various other meanings.
Letter Registering.— The fee for registering a letter is fourpence, for which the Post Office will give you a receipt. The person to whom the letter is addressed, will be required to sign a paper to show that it has been safely received.
Order.— This will be granted at the Post Office,
on payment of the sum for which you wish to obtain the Order and the Commission
The commission on inland Money Orders is:.—
For sums under 10s. . . . . . . . . . . . 1d.
For sums of 10s. and under £1 . . 2d.
For sums of £1 and under £2. . . . 3d.
For sums of £2 and under £3 . . . 4d.
For sums of £3 and under £4 . . . 5d.
For sums of £4 and under £5 . . . 6d.
And so on.
No order is granted for a fractional part of a penny.
No Money Order can be issued, unless the applicant furnish, in full, the surname and at least the initial of one Christian name, both of the remitter and the payee, together with the remitter's address.
Money Orders are also issued to the Colonies, and many Foreign Countries.
[-164-] When you enclose a Money Order, it is safest to sign only your initials in that letter, lest it be lost, and another person obtain the money, by applying for it and signing your name. Of course the person who is to receive the money must know your name, or it will not be given to him.
Net, means "clear" product; therefore net product, means clear from all outlay. Example:— I receive £80 rent for my house; I have to pay £10 for taxes and repairs; there remains, therefore, £70 net product, or income.
Overcharges.— If you order anything without previously arranging about the price, and are charged enormously for it, it does not follow that you will be obliged to pay the bill. An extravagant charge may be resisted by law. If the sum that you may reasonably hope to have struck off the bill be large enough to make it worth your while to incur the expense and trouble of doing so, refer it at once to your solicitor.
[-165-] Par. — Original value.
Post Office Order. — See "Money Order."
Profit and Loss.— A term more applicable to those who are engaged in trade or business, than to persons living on their own independent means, or income; but as regards the latter, if any purchases of Stock or Shares, &c. &c. are made, and resold at a higher price than that which was given for them, —or if, on taking Stock at the end of the year, the market value of such Stock or Shares, &c. is greater than that given,-it would be "Profit." On the other hand, if they are re-sold for less, or the market value is less, it would be "Loss."
Property Personal in law, means Leaseholds, moveables, chattels, things belonging to a person, as money, jewels, furniture, &c., also Shares in Canals, Railways, Gas, Waterworks, Insurance Offices, &c. &c.
[-166-] Property real consists of Freehold Land and Houses.
Share List. — A list showing the present price of Shares, a condensed list of which is published in the daily newspapers; but more extended information is to be had in one published for the use of Brokers. A London Share List, called the "Course of Exchange," is obtainable for 6d. of any respectable Broker. If you require the London Brokers' List (not the "Course of Exchange "), or a provincial list of Shares, write to your Broker in London or elsewhere, as the case may be, and enclose two or three postage-stamps and ask for one. Your Broker will generally send you a Share List (not the "Course of Exchange "), when required, without a charge. In it you will often see Pm., which is short for Premium, so much extra to the sum paid upon the Share or Stock. Dis. means Discount, that is to say, so much less than the sum so paid.
[-167-] Sinking Fund — A Lady may have occasion to set apart a yearly sum, in order to create a separate Fund, to be applied to some future purpose, such as a marriage portion for a girl, now a mere child, or even to objects yet more remote. If she chooses to consider the sums to be wholly devoted to that end, as much so as if they had been actually subscribed, it is evident that the annual interest which the Fund yields, ought to go into the Fund itself, and not into the pocket of the Lady. In short, she ought to invest each year on behalf of the Fund, not only her annual contribution, but also the interest which the Fund itself has yielded. This is called making a "Sinking Fund." Its items increase by compound interest, and, after the lapse of many years, a small annuity so treated will be found to have grown into a very large capital. The following Table will enable its amount to be calculated, under various conditions.
SINKING FUND (ANNUITY OF £10).
If £10 be set apart annually and invested at the beginning of each year, in addition to the interest of the Fund itself during the year just completed, then the amount of the accumulations after various periods of time, and according to various rates of interest, is given in the Table below.
|AFTER COMPLETION OF YEARS||£3 per Cent.||£4 per Cent.||£5 per Cent.|
Stock-taking.— Calculating the present value in the Money Market of all your property. — See Keeping Accounts.
Stock or Share Broker is a Commission Agent, who sells and buys Stock and Shares for the public at a fixed commission. All the leading Stock and Share Brokers are members of a Stock Exchange. It is the Broker's duty to buy or sell for his principals, lie acts as an agent, sees that all is fairly done, for which he gets a commission. It is not considered professional for a Broker to deal in Stock on his own account. See Index.
Scrip, is from the Latin word Scriptum, something written. Many new Shares are represented by Scrip, or unregistered certificates. Shares of a new Company are often issued as Scrip, as soon as the first deposit has been paid. Many of the foreign Railways continue to deal in Scrip.
ACCEPTANCE, 67, 79, 153.
Accounts, keeping, 141 to 152 with a Banker, 33 ; deposit, 31, 56 ; overdrawing, 35.
Address, change of; 26 ; letters of business, 25.
Administration, letters of, 125, 154.
Administrator, 130, 154.
Advice, asking, 17.
Agents' charges, 109, 130.
Agreements in writing, 134.
Annual subscriptions, through a Banker, 54.
Annuities-for terms of years, 69; for life, 127; Three per Cent. Reduced, 69; New Three per Cent., 69; New Five per Cent. 69; New Two-and-a-half per Cent., 69; Government, 69, 134.
Appeals against rates, 115.
Arrangement of papers, 20.
Arrears of dividend, 105.
Arrears of rent, 114.
Assessed taxes, 136.
Assurance or insurance, 134, 154, 158.
Attorney, letter of, 71, 74, 76.
BACKING a bill, 155
Balance sheet, 154.
Bank, joint-stock, 14.
Bank, money at interest, 56.
Bank notes, if lost, 23.
Bank, not too small a sum in, 35.
Bank of England, 72, 77, 78.
Bank, opening an account at, 54.
Bank or pass book, 33 ; not writing in, 34; making up, 34; balancing, 34; overdrawing, 35 ; by post, 35.
Bank post bills, 65.
Bank stock, 69.
Bank, to receive stock dividends 72, 75.
Bankers, 30, 33, 105.
Banks, savings, 134.
Bearer cheques, 37 to 48.
Bill, backing, 155.
Bill stamp, impressed, 43, 67.
Bills at Christmas, 22 ; discount, 156 ; docket, 21; exchange, 66, 153, 157; foreign, 38; bank post, 65; promissory, 66; receipted, 21 ; sharing, 150; sight, 66.
Bills, exchequer, 83.
Bonds, 14 ; debenture, 14, 86 renewing, 89.
Bonds, East India, 69.
Books, useful, 23, 116, 131, 139
Brokers and Brokerage, 30, 31, 71, 74, 79, 80, 87, 104, 130; when not essential, 87.
Business letters and transactions, 25, 27, 76, 88, 103, 105, 108, 111
CALLS, 53, 96.
Capital, 17, 155.
Cent., Centum. 155.
Cheques, 36; forms of; 37 to 58; returning, 59 ; overdrawing, 35; not to draw often very small sums, 36; not a halfpenny, 36 ; payable to bearer, 37, 48; payable to order, 39, 44; endorsed 40; stamp, receipt, or draft 37, 43; crossed, 39, 48; & Co 40; dating in advance, 41 drawer, 41 ; void after a person's death, 41 ; void if bankrupt, 42 ; presented for payment, when, 42; dishonoured, 42; no effects, 42; "refer to drawer," 42 ; writing distinctly, 42; eight and eighty in a cheque, 42; printed cheque book, 43; on demand 44 payable to "self", 48; to procure money by post, 48; transferring money, 49; interest, 51, 56; Executor, 52, 129; when unable to sign, 52 ; calls, 53; annual subscriptions, 54; opening an account, 54; remitting money, 55; deposit, 56 ; receiving, 57, 58; payment of money lent, 59; destroy, 59; cheque book lost or stolen, 60; on death of a customer, 60.
Christmas bills, 22.
Christmas let, 111
Circular letter and notes, 61, 63
Commissioner's charges. See Brokers.
Consols, 69, 70, 155.
Copies, keep, 26.
Coupons or interest warrants, 86, 155
Coupon, ex-, 158
Course of Exchange, 166.
Credit, 33, 61, 156.
Credit, letter of, 61
Cr. or Creditor, 33, 61, 156.
Crossed Cheque, 39, 48.
DATING cheques in advance, 41.
Death, 60, 127.
Debenture, 98, 156; bond, 14, 86, 103.
Debenture stock, 91.
Debit, 34, 156.
Dr. or Debtor, 34, 156.
Debts, pay regularly, 22.
Deed lending, 30; receiving, 30, 137.
Deed, title, 100, 102.
Deposit, 31, 56.
Difference of being rich or poor, 22.
Discount, 95, 156.
Discount table, 160.
Dishonour a cheque, 42.
Dividends, 14, 15, 72, 157; arrear, 105; cum-, 157; ex-new, 157, warrants, 73; on Government Stock, 72.
Docket, 20, 21.
Documents, to preserve, 19 signing, 24; witnessing, 24.
Drawer of a cheque, 41. Drawer, refer to, 42.
EASTER dues, 137.
East India bonds, 69.
East India stock, 69.
Endorse or Indorse, 40, 158.
Exchange, bills of, 66, 153.
Exchange, Course of; 166.
Exchange, discount upon a bill, 157.
Exchequer bills, 83.
Executor, 29, 52, 124, 127, 129, 130.
Eight and Eighty in a cheque, 42.
Expenses, sharing of, 150.
FIRE insurance, 115, 158.
Friends, business with, 27.
Funds and stocks, 30, 69; accepting, 30, 67, 79; investing, 71 ; attorney, power or letter of; 71, 74 ; ascertaining value, 81; attendance, personal, 72, 78, 79; Bank of England, 72, 77 ; brisker, 71, 75; dividend, 72; investing, 71 ; loan, 81 ; receipt, 74, 79 ; selling, 76 ; Signature, 75, 79 ; trustee can transfer, 80 ; stock receipt, 79.
GOVERNMENT stock, 69, 70, 80
Ground rent, 116.
Guaranteed shares, ,6.
HIGH interest, 13.
Houses hiring or lodging, ,108, 109 ; infectious, 110 property, 109 ; .selling, 109 Lady-day, or Midsummer, or Michaelmas, or Christmas let, 111 ; notice to quilt, 112; arrears of rent, 114 ; receipt for rent, 114; insuring against fire, 115, 158.
IMPOSITION, 18, 101.
Impressed bill stamp, 43, 67.
Indian bonds, 69.
Indorse or endorse, 40, 158.
Inexperienced, 13. .
Infectious lodgings, 110.
Insurance, 134, 154; against fire, 115, 158; life, 127, 158.
Interest, 13, 15, 138, 159; money at a bank, 51, 56 ; interest warrants, 86, 155; to find, for any sum, simple and compound, 138, 159, 162; ex-, 157; high, 13.
Invest: form of letter of inquiry, 89, 103.
Investment,, 13 to 17, 69, 93, 109.
JOINT-STOCK banks, 15.
KEEPING accounts, 141 to 152.
LADY-DAY let or take, 111
Land, deed of, 30, 100, 102, 137; ground rent, 116 ; map of, 30; mortgage, 14, 29, 100; years purchase, 138.
Landlords, tenants, and lodgers, 112, 140.
Land tax, 116.
Ledger. See Account,, Keeping.
Legacies, 128 ; specific, 123; pecuniary, 123; lapsed, 124; duty, 124 ; receipts, 129.
Let, Midsummer, Lady-day, &c., 111.
Letter to banker, 35; of credit, 61; circular, 61 ; forwarding, 135; registering. 162.
Letters business, see Business Letters ; of attorney, 71 ; form of; for investments, 89, 103; form of, dividends in arrear, 105 ; form of, brokers, 76, 84, 105; of administration, 125 ; hiring lodgings, 108; notice to quit, 111.
Liabilities of landlords, 136 ; of tenants, 116
Life Insurance, 127.
Limited liability, 15.
Loan, stock, 81.
Lodgings, hiring of; 109 ; if infectious, 110.
Loss, "Profit and Loss," 165.
MAKING a will, 120, 124; after marriage , 119, 123.
"Making up" bank-book, 34.
Map of land, 30.
Marriage settlements, 118
Michaelmas let or take, 111.
Midsummer let or take, 111.
Money in different concerns, 16; lent 29, 58 ; on deposit, 31; in banker's hands, 33 transferring, 49, 55; at interest, 159 to 162; to find interest, 138, 159, 162; order, 163.
Mortgage, 14, 29, 100.
No effects, 42.
Notes bank, if lost, 23 ; circular, 61 ; promissory. 66.
Notice to quit a house, 112.
OFFERINGS, Easter, 137.
"On demand," 44.
Opening an account, 54.
Order, 39, 44, 58; overdrawing, 35; crossed, 58 ; on demand, 44; for money at post office, 163.
Original shareholders, 15, 96.
PAPERS: arrangement, 20; keep, 19.
Par : above, below, at, 95, 165.
Pass or bank hook, 33, 34.
Pay debts regularly, 22.
Per cent.. 155.
Periodical payrnents, 142 ; receipts, 142.
Policy of Insurance, 158.
Post bills, bank, 65.
Post office, to forward letters, 134.
Post-office order. See Money Order.
Post-office savings bank, 134.
Power or letter of attorney, 71, 74, 76.
Preference shares, 17, 95.
Premium, 94, 97, 115.
Preserve documents, 19.
Probate, 60, 124, 128 ; duty, 124.
Profit and loss, 165.
Promissory note, 66.
Property : personal, 165 ; real, 166; tax, 116
Property, statement of. See Keeping Accounts.
Public funds. See Funds. Purchase, years', 138.
QUIT, notice to 112.
RAILWAY shares and stock, 84; bonds and debentures, 86 ; to sell, 85; renewing, 89.
Rates, appeals against, 115
Rate of interest, 159.
Ready Reckoner, 23.
Receipted bills, 21.
Receipts, 29, 137; cheques, 57, 58; from friends, 29; legacy, 129; returning, 59; rent, 114; periodical, 54, 142 ; stock, 74.
Refer to drawer, 42.
Registering a letter, 162.
Rent, ground, 116.
Rent in arrears, 114.
Residence, change of 26.
Rich and poor, 22.
SALEABLE title, 28.
Savings bank, 134.
Security. 29; leading, 69.
Self or bearer. See Cheques.
Servants: agreement, 134; books on, 134; character, 131 ; hiring, 132; wages, 131 ; board wages, 133.
Settlements, marriage, 118; trustee, 119.
Share list, 166.
Shareholders, original, 15, 96.
Shares, 15, 93 ; guaranteed, 16; how raised, 93 ; preference, 16, 95; new, 96; calls, 96.
Sharing expenses, 150.
Signature, 25 ; signing documents, 24
Sinking fund, 167, 168.
Stamps, 37, 43 ; impressed, 43, 67; stamp act, 38.
Stock, bank, 69.
Stock debenture, 91.
Stock, East India, 69; government. See Funds.
Stock loan, 81
Stock or share broker, 169.
Stock, railway, 93. See Railway.
Stock taking, 152, 168.
Stocks. See Funds.
Stock, to ascertain value of, 81. "Stop" bank notes, 23.
Subscriptions, annual, 54.
TAKE of a house, quarterly or yearly, 108, 109.
Taking stock 152, 168
Taxes : assessed, 136 ; income, 135 ; property, 116, 135 ; land, 116.
Technical terms, 153.
Tenants and landlords, 112; liabilities, 116, 136.
Testators, 121, 128.
Time ; poor man's money, 22.
Title to property, 102; saleable, 28.
Trading concerns, 15.
Transactions, motley, 27 ; with friends, 27.
Transferring money, 49.
Trustees, 80, 119, 121.
UNDER [ ] pounds in a cheque, 43.
Useful books on special subjects, 139, 140.
WAGES : servants', 131 ; hiring, 132; board, 133.
Warrants, interest, 86, 155 dividend, 73.
Wellington, late Duke of; 13.
Wills, 119 ; dying without, 125; irregular, 128 ; making, 124, 125 ; read it yearly, 126; revocation, 123.
Witnessing a Signature, 24.
Writing your Signature, 25; legibly, 26, 42, 79.
YEARS' purchase, 138.