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(4)Payments at regular intervals are spread over a speci fied number of years, the fixed amount per payment being set at the figure that will exhaust the death value, plus accrued interest, at the end of the stated period of years. (5)An annuity: a fixed amount is paid at regular intervals as long as the beneficiary lives. (6)Combinations of these options can be arranged for one or more beneficiaries. As far as the scheduling of payments is concerned, these options offer a choice to suit most anyone’s desires. The same options generally are available also when an insured person, without waiting to die, surrenders his policy. The big drawback in these settlement options is that they are all fixed-dollar amounts, and the interest rate included in them is around 2 or 3 per cent.

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One would need to work through the testimony of witnesses in proceedings before the Securities and Exchange Commission, in its reports to courts in reorganization proceedings, or in proceedings before the Interstate Commerce Commission in order to understand why 12 to 15 per cent is actually a very modest difference of opinion. Valuation proceedings growing out of tax litigation involving stock of closed corporations tell the same story. And the competitive bidding of investment banking firms for the stock of companies like Schering Corporation, whose stock was wholly owned by the Alien Property Custodian, underlines the wide spread in opinions about stock valuation when no market has heretofore existed. For this reason, I contend that no one can prove that an actively traded industrial stock is “worth” 50, say, but not 56 or 58. Finally, there are an infinite number of glaring examples of differences in valuation placed on stocks by the market which can be explained only in terms of super confidence, or lack of confidence. For example, could the reader who covers the last column of the following tabulation and concentrates on the earning and dividend list, conclude that the price record would be anything like that set down in the final column?

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Since 1933, the prospectus has undergone many changes. Today, it is a streamlined document, generally brief, and written as simply and clearly as the subject matter permits. The Commission has gone far to prevent the prospectus from being misleading even though it is a selling document intended to persuade the prospective investor. In an early proceeding, the Commission decided that the type used to name the custodian of an investment company was so prominent that it presumably was intended to impress the reader with the standing of the financial institution and lead him into thinking that the custodian would have a voice in the fund’s management. Revision was required. The prospectus generally contains the following information about the fund: its objectives and features, investment policy, the securities being offered, management personnel, dividends and capital gains distributions, investment powers and restrictions, redemption or repurchase of shares, pricing of shares, portfolio, and financial statements, including a record of per share income and changes in net asset value.

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