REVIEW OF OBJECTIVES

To illustrate differences in the objectives and investment poli cies of representative investment companies, statements con tained in prospectuses and other official material published by investment companies are cited.

The Adams Express Company

Under its Articles of Association, the company has very broad powers of investment as well as authority to lend money and underwrite securities. According to its statement of policy, the company may invest in any type of security. It is not restricted with respect to the proportion of its investment in bonds, pre ferred stocks, and common stocks; the percentage of its assets invested; the percentage of voting securities of any one issuer; nor with respect to investments in companies for the purpose of exercising control or management.

The company policy is to limit its investment in any one com pany to not over 25 per cent of its gross assets at the time and not to concentrate investments. When existing conditions ap pear to make it advisable, the company may concentrate invest ments in one industry or group of industries with a view to protecting the value of its assets.

The company may buy and sell real estate to the extent of not more than 5 per cent of the assets of the company at the time, but the policy is not to conduct such operations. The same holds true with regard to authorized activities in the commodities markets. Adams Express has acted as an underwriter of securi ties in the past. It may borrow money and issue debt securities, but it has had no indebtedness since 1948, with one inconse quential exception. Certified Financial Planner - Read More.