hether you are investing Finally, if your stock doesn't
in shares or Forex your go up as anticipated, there is
main gains will be always the chance that it will at
capital appreciation: The least be a decent
investor in this category is not income-producer.
interested in dividends but in This is something of a
seeing the market price of his rationalization, of course. There
stock increase or one currency is no use pretending to be in the
improving against another. capital-appreciation business if
There are three advantages to a little mess of dividends is all
this kind of operation. First, if you have to show for your
your judgment has been good, you efforts. The more consistent
make more money faster than by course is to drop the
relying on dividends. For non-producing stock (losses, if
example, the man who buys 100 any, are tax deductible) and shop
shares at $30 and sells even at a around for a winner. This, to be
10-point profit has $1,000 (less sure, takes guts. There's nothing
commissions) to show for his like a couple of growth stocks
year's work. This represents that don't grow to take the steam
nearly seven years' worth of out of a capital-appreciation
dividends from the $30 stock man
yielding a conventional 5 per On the other hand, the
cent.
gloriously rising market since
Secondly, if you hold your World War II has simplified the
investment for more than six task of discovering and getting
months, your profit is considered aboard a company with promising
a long-term capital gain, taxable prospects. And, as noted, an
at a maximum 25 per cent rate for investor could wait five years
many people, a saving over for his 10-point gain and still
straight-income rates.
be ahead of the plugger piling up
dividends.
riding crests of speculative
Capital appreciation, it interest are such stocks as
should be noted, is an omnibus General Dynamics, builder of
term covering any change or atomic submarines and Convair
advance in a company's position airplanes; Owens-Corning
which might be reflected in the Fiberglas, manufacturer of
market price. It may mean the insulation, filters and textiles,
emergence of a new company in a and glass fiber boats, and Bendix
new industry, the coming of age Aviation, no infant, but
of a speculative youngster of a investing heavily in
decade or two ago, or even new diversification and new-product
evidence of vitality in an development. Dow and Minnesota
established veteran.
Mining might also be grouped
Recently for instance, the here, although possibly by now
stock of Ampex, Inc., a bright they should be included among the
little California company older companies Corning Glass,
manufacturing top notch equipment Goodrich, Union Carbide,
for the booming tape-recorder Westinghouse, National Lead,
industry, has more than doubled Minneapolis Honeywell, Eastman
in value.
Kodak—whose youthful spirit and
Dozens of small companies astonishing technological
dealing in electronics, precision resources have kept them in the
equipment, and other fruits of forefront of American industry
current scientific research for years.
(Tracerlab, National Research,
All of these examples would
Beckman Instruments, etc.) are qualify as growth stocks, as the
similarly attracting attention kind of investment that would
and consequent jumps in tempt the investor seeking
price.
capital appreciation.
Somewhat more established and
But appreciation can also
follow from subtle and for uranium exploration and
complicated changes in a processing; and many others are
company's structure. In these examples of stocks with potential
cases, appreciation may have capital-gains features.
nothing to do with a new product
It is not possible to say
or even with the company's exactly how or if the gains will
prospects within its industry. be realized. Mergers require an
Rather it is the anticipated adjustment of the stock prices of
result of a merger, a spin-off the participants which may
(distribution of assets), a benefit one or the other; or
reorganization, or any one of a public interest in the prospects
number of procedures available to of the combined company may cause
the complex institution known as the stock to spurt.
a corporation.
An as yet undeveloped asset,
Talk of a merger between such as Northern Pacific's oil,
Bethlehem Steel and Youngstown or Inland Steel's Steep Rock iron
Sheet & Tube made both stocks interest in Ontario, might mean
interesting possibilities. U.S. an eventual bonanza which would
Foil "B" (American Stock be reflected in stock prices or a
Exchange), representing about 48 capital distribution of cash or
per cent control of Reynolds stock. Several years back, Andes
Aluminum; duPont, which is having Copper, an Anaconda subsidiary
to divest itself of 63 million operating in Chile, made a
shares of General Motors stock; capital distribution of $6 per
Northern Pacific Railway, which share at a time when the stock's
has important oil interests in market price was hovering between
the booming Williston Basin of $12 and $15.
North Dakota; El Paso Natural
Most gains on Forex are
Gas, which has formed a capital gains, where the currency
subsidiary, Rare Metals Corp., trader is hoping for an increase
in the value of one currency
against another. Profits can be google_color_bg = "FFFFFF";
spectacular, but it is worth
having good Forex software to google_color_link =
prevent large losses. "0000FF";
google_color_text =
type="text/javascript">
google_ad_width = 728;
google_ad_height = 15; type="text/javascript"
google_ad_format =
"728x15_0ads_al";
src="http://pagead2.googlesyndica
google_ad_channel = tion.com/pagead/show_ads.js">
"3545651507";
google_color_border =
"FFFFFF";
