This applies to all kinds of stock on the same
principle, the prices varying according to the
esteem in which they are held, or, in other
words, the credit they have with the moneyed
world.

The shares of companies, which are only
purchasable in whole numbers, are of various
denominations, or face values; and again these
face values by no means represent the market
value. Shares of £5 each (nominal value) may
be quoted as selling at 6, which would be 1 pre-
mium, but the dividend or interest would be
calculated on £5. On the other hand, a £5
share quoted at 4 would be 1 discount, but the
dividend or interest would still be calculated on
the face value of £5.

In very many cases the whole of the nominal
value of a share is not called up, _i.e._, is not re-
quired to be immediately paid. Thus a £5 share
may have only £3 paid upon it, leaving a lia-
bility of £2, which the holder may at any time
be called upon to pay, whether convenient or
not. This should always be borne in mind when
purchasing shares of any kind, as the neglect of
this precaution has often involved holders in
serious difficulties, from being called upon to
pay up when least able to do so.