File:Bell telephone magazine (1922) (14754053364).jpg

Identifier: belltelephonemag13amerrich (find matches)
Title: Bell telephone magazine
Year: 1922 (1920s)
Authors: American Telephone and Telegraph Company American Telephone and Telegraph Company. Information Dept
Subjects: Telephone
Publisher: (New York, American Telephone and Telegraph Co., etc.)
Contributing Library: Prelinger Library
Digitizing Sponsor: Internet Archive

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ates is an ever present factor in this turnover and in thecase of the A. T. & T. Co. some 5,500 stockholder accounts areclosed out yearly through this cause alone. Allied with this isthe turnover due to gifts of stock to others. But there is agreater turnover due to the selling of stock by stockholdersbecause they need funds or are attracted by some other in- 136 OWNERS OF THE BELL SYSTEM vestment. From the standpoint of these potential sellers, itis desirable that the stock have a readv market and that it benot subject to abnormal fluctuation. It is this very fluctuationin price, however, that unsettles and constantly works out ofthe list another and perhaps less numerous group of stock-holders—those who are not well established in their savingshabits—who are watching the market for current profits, orwho may be uneasy about their investments in the face ofday-to-day market developments. 800.000 DISTRIBUTION OF STOCKHOLDERSBY AGE OF ACCOUNTS AMERICAN TEL. AND TEL. CO. 800.000
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1922 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 1933 More than 43 Per Cent of A. T. & T. Stockholders H.\ve Hei,d their Stock for Five Years or More. As a consequence of all these factors, there is a fairly con-sistent mortality rate among shareholders. The rate de-clines, however, as they become more seasoned. For example,about one stockholder in four is found to have closed out bythe end of a year, whereas in the second year only one in everyeight of those surviving will have closed out, with generallylower rates of loss thereafter. These rates represent only average tendencies, however, be- 137 BELL TELEPHONE QUARTERLY cause the actual turnover definitely varies from year to yearunder the impact of influences other than the mere compositeage of the shareholders accounts. For instance, the move-ment in prices has a quite noticeable effect on account closures,the tendency being for closure rates to increase when marketprices are rising, as in the first nine months of 1929

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