mand a high premium, and the investment,
therefore, though undoubtedly safe, does not
yield much in the way of interest. Guaran-
teed stocks are of various kinds and rank --
some on the same level as, and others next in
order to, debenture stocks. In some cases
the interest is guaranteed by another railway.
Before investing in these stocks the nature of
the guarantee should be ascertained and its value
taken into consideration. Preference stocks
and shares come next in rank as an invest-
ment. The interest on these is fixed at a cer-
tain rate per cent., and, after satisfying the
preceding stocks, must be paid in full; or if
there is not sufficient profit in the year to pay
in full, then as much as means will allow.
But any deficiency cannot be carried on to the
next year, and so it is lost to the holders.

There are several degrees of Preference
stock, some taking precedence of others as to
interest; a first preference may be as good as
debenture stock, whilst the last preference of
the same railway company may be no better
than ordinary stock.

Preference stock may be purchased in any
amount in the market, and the interest war-
rants are sent half-yearly to the registered
holders.