00:00This is the residence of
00:28Fred Finchley.
00:30He's a family man who enjoys the peace and quiet of his little home.
00:41Fred Finchley has a good job.
00:44Freddy, look.
00:45And his family enjoys their standard of living.
00:52His salary keeps up with the cost of living,
00:55and he owns some of those work-saving appliances we all admire so much.
01:01Finchley always checks to make sure he gets his money's worth.
01:05But after paying his bills,
01:07his savings account,
01:09and life insurance premiums,
01:12there never seems to be enough money left to pay for that.
01:16But there's a time for dreaming
01:17and a time for working.
01:21So every workday morning,
01:22Finchley joins the stream of traffic that flows toward his job.
01:29As you can see,
01:30Finchley could not be called, Hector.
01:33But he always gets to work
01:35right
01:37on
01:39time.
01:44Sorry, $60 a month.
01:46Have a cigar.
01:48Thanks for the good work, Finchley.
01:50Well, uh,
01:51gee,
01:52thanks, JB,
01:53for the cigar.
01:55And,
01:55and,
01:56the race.
01:58Sixty bucks a month.
02:03Hey,
02:03can I use it?
02:05Sure you can,
02:06Mr. Finchley.
02:07But how?
02:09Huh?
02:09Yes,
02:10what will you do with those extra dollars?
02:12There are lots of things you could do.
02:14Bury it in a tin can in the backyard,
02:16for instance.
02:18But idle money may in time depreciate.
02:21Or,
02:22you could spend it on a couple of nights out a week with the wife.
02:28This seems like a lot of fun.
02:35But with this kind of life,
02:37you'd depreciate.
02:38So why not put your money to work?
02:41Put my money to work?
02:43That's right, Mr. Finchley.
02:45You can own a share of American business.
02:48There are over 1,200 companies listed on the New York Stock Exchange.
02:52Companies which employ more than 11 million people,
02:55produce half of all the goods made in America,
02:59and pay about half the nation's dividends.
03:02Many of these companies have been paying dividends for 25 years or longer.
03:07Tycoon.
03:08Neither are most of the people who own shares in American business.
03:12Three out of four of all share owners are in families which make less than $10,000 a year.
03:17The raise was only $60 a month.
03:20Well, the monthly investment plan is specifically designed for anyone
03:24who wants to invest in common or preferred stocks on a pay-as-you-go basis.
03:30You can pay $40 up to $1,000 every month or every three months under MIP.
03:37So why not the member firm of the New York Stock Exchange
03:40and get some practical advice on how to own a share in American business?
03:45And before you invest, investigate.
03:52Yeah, invest.
03:55Just think, with $60 a month, I could...
03:58Just a moment, sir, if you please.
04:08You look like the kind of a pigeon, uh, uh, uh, man of judgment
04:12who knows how to invest his money wisely.
04:14Uh, uh, uh, won't you step into my office, please?
04:17Let me give you a hot tip of the strictly confidential.
04:20For a limited time only, we are offering to discriminating buyers like yourself
04:24a few shares in a world-famous company with mines in Nigeria, Tasmania, Somaliland, and Brooklyn.
04:31It's...
04:33Utopium Unlimited.
04:36It glows in the dark.
04:38Small investment, big profit.
04:40As a special favor, I'll let you have 100 shares for only 40 cents a share.
04:44That comes to $40.
04:46Plus, of course, $20 for putting you onto a sure-fire moneymaker.
04:50You are now a man of some...
04:52Hey, you!
05:03Mr. Finchley, there is a big difference between dealing with a fly-by-night operator
05:08and a reputable broker.
05:10Sit down, Mr. Finchley.
05:13First, tell me.
05:14What are you gonna sell me?
05:17Not a thing, Mr. Finchley.
05:18As members of the New York Stock Exchange, we are prepared to be of service to you, at least.
05:24Every day, member brokers buy hundreds of thousands of shares of stock.
05:28A doctor in Atlanta wants to buy some stock.
05:32A farmer in Spokane wants to sell his stock in the same company
05:35to get, uh, cash, say, for a new tractor.
05:39The Atlanta broker for the buyer
05:41and the Spokane broker for the seller
05:43speed the orders to their exchange members
05:46on the floor of the New York Stock Exchange.
05:49When the floor broker representing the buyer
05:51bids the price asked by the floor broker representing the seller,
05:55a transaction is made.
05:58When you sell securities on the New York Stock Exchange
06:01in cash by the buyer,
06:03every day, millions of dollars of listed securities
06:06are bought and sold on the New York Stock Exchange.
06:09You can check the price of your stock in a daily newspaper
06:13or by getting the latest market quotation
06:16from a member broker like myself.
06:18Well, uh,
06:20how do I get the facts before I invest?
06:23Before you buy stock in a company,
06:26you'd want to know, among other things,
06:27its record of sales,
06:30for previous years,
06:32what dividends it has paid,
06:34and its prospects for the future.
06:37Of course, we can't foretell the future,
06:41but we can give you many facts and figures
06:44to help you select a suitable stock.
06:46Well, how about this monthly investment plan?
06:50Maybe I'd want to invest only about $50 a month.
06:53Well, MIP was set up for people
06:56who want to buy stocks on a...
06:58$50 a month can build up quite a little nest egg.
07:02Suppose you take a trial run
07:04on the imaginary investment route.
07:06You might dock selling for $100 a share.
07:10Let's say you invest $50 each month
07:13in a stock selling for $20 a share.
07:16At this price,
07:17you'll buy almost two and a half shares
07:19as the Brokers Commission.
07:19If the price of your stock drops,
07:24you'll get discouraged,
07:26providing you believe the long-range price trend
07:29will be upward.
07:31Of course, you can sell at any time.
07:34You'll lose on stock that costs you more than $50 a share.
07:37In addition, you'll have to pay the Brokers Commission on the sale.
07:42To continue the plan,
07:44the monthly payment of $50
07:45buys three and a fraction shares of stock
07:49at $15 a share,
07:50to $27 a share.
07:53If you sell here,
07:55you'll have a profit on the shares
07:56that cost you less than $27.
07:58Your $50 monthly payment
08:02buys one and a fraction shares of stock
08:05at the price of $27 a share.
08:09Of course, the price of a stock
08:11can go down as well as up.
08:13But with a long-range monthly investment plan,
08:17your $50 a month
08:19buys more shares
08:20when the price is low,
08:22fewer shares when the price is high,
08:24to average out the price of all the stock you purchase.
08:31You can quit the plan at any time, Mr. Finchley,
08:34and take the shares you have purchased.
08:36But the idea of the monthly investment plan
08:39is to invest every month
08:41on a long-range basis
08:43in the stock of a company
08:45that you think will have good earnings
08:47and pay dividends.
08:49Take, for example,
08:50a company whose stock is selling at $20 a share.
08:53If that company, over the past year,
08:56paid out a dollar a share,
08:58the dividend yield comes to 5%.
09:00You can keep the cash,
09:04or if you wish,
09:05the dividends can be automatically reinvested for you.
09:09Now, the investment route you're traveling
09:12is a good one
09:12because the stock has paid satisfactory dividends.
09:17And even with its ups and downs,
09:19the long-range price trend has been upwards.
09:23Hmm, looks pretty good.
09:27But before I invest,
09:29I'm going to study the facts myself.
09:33That's right, Mr. Finchley.
09:35All investors should study the facts carefully
09:38before they buy any stock.
09:40And remember,
09:42the monthly investment plan
09:44is designed especially
09:46for people who want to invest
09:47as little as $40 or $50,
09:50as well as for those who want to invest
09:52up to $1,000
09:53every month
09:55or every three months.
09:59There are many promising investment routes
10:01to travel.
10:02Many companies whose stocks are listed
10:05on the New York Stock Exchange
10:06have helped to build
10:08our rising standard of living
10:10by constantly creating new jobs,
10:14services,
10:15and products.
10:17Therefore, Mr. Finchley
10:19and all those
10:20who can assume the risk
10:21of seeking dividends and profits
10:24can put their dollars to work
10:26by owning their share
10:29of American business
10:30through the monthly investment plan.
Comments