Adjustment

bond. A special and little used name for a bond i ued for the adjustment of the finances of a company to its increased need for funds (money). For example, a railroad desires additional funds for improvements or extensions. It i ues adjustment bonds for the purpose and these are an original or first lien on new property or are a lien after existing liens on property that is improved by expenditures on it from the proceeds of the adjustment bonds.: Adjustment mortgage. A mortgage that usually covers or represents improvements; usually, also, it is subsequent in f lien or claim to another mortgage. For additional information see Adjustment bond. | Admi ion to dealings at the New York Stock Exchange. When stocks or bonds are admitted to dealings at the New York Stock Exchange they are officially announced, if placed on the regular list, as having been “admitted to the list;” if not placed on the regular list they are announced as having been “admitted to quotation in the unlisted department.” There is very little difference between “admitted to the list” and “admitted to quotation in the unlisted department.” The chief purpose of the unlisted department is to provide for dealings in securities which do not in all respects meet the requirements for admi ion to the regular list as it is commonly called; it is also intended to provide for dealings in securities of new companies pending the perfecting of their organizations and the completion of their plans, after which the securities are to be transferred to the regular list. The requirements that must be complied with to gain for an i ue of stocks or bonds admi ion to dealings at the exchange are stated in detail in a printed circular designated as the “requirements for listing” which is supplied by the exchange for the information of companies that desire to have their securities dealt in at the exchange. A company must furnish proof of its own legality, proof of the legality of title to its property and proof of the legality of the securities i ued by it; it must furnish a detailed statement of its affairs, including its financial condition; must furnish a copy of its charter or articles of incorporation, a copy of its by-laws, etc. Furthermore, its certificates representing its securities must meet the requirements of the exchange in their form and in the engraving and printing of them and also in the denominations for which they are made out. Likewise, a transfer agent (usually a trust company or a bank) must be appointed or a transfer office established; also a registrar (usually a trust company or a bank) must be appointed. 19