Stock market trading – As recently as 1953, investment in senior securities was approximately $35 million, and outstanding funded debt and preferred stock exceeded $58 million.

Now the balance is such that the senior capital structure has little influence on the asset value of the common stock. As indicated by the management, it was not moved by fears of a depression in 1945 and 1946 and maintained its investment position. Net asset value per share of common stock shrank from close to $15 to less than $11 by the close of 1947; but a fast recovery occurred, with uninterrupted year-end gains which brought net asset value per share up to more than $29 at the end of 1952 and to above $49 by the close of 1955. The decline in the per share asset value was quite large between 1956 and 1957, but a partial explanation was the issuance of a substantial number of new shares due to the exercise of warrants. Adjusted for the net effect of extra dividends declared and of changes in tax provisions, assets per common share, assuming the exercise of all warrants, declined 6.9 per cent in 1957 compared with a decline of 12.

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