James Gordon Brown is a British politician, Prime Minister of the United Kingdom and Leader of the Labour Party from 2007 to 2010. He served as Chancellor of the Exchequer from 1997 to 2007. Brown was a Member of Parliament from 1983 to 2015, first for Dunfermline East and for Kirkcaldy and Cowdenbeath. A doctoral graduate of the University of Edinburgh, Brown spent his early career working as both a lecturer at a further education college and a television journalist, he entered Parliament in 1983 as the MP for Dunfermline East. He joined the Shadow Cabinet in 1989 as Shadow Secretary of State for Trade, was promoted to become Shadow Chancellor of the Exchequer in 1992. After Labour's victory in 1997, he was appointed Chancellor of the Exchequer, becoming the longest-serving holder of that office in modern history. Brown's time as Chancellor was marked by major reform of Britain's monetary and fiscal policy architecture, transferring interest rate setting powers to the Bank of England, by a wide extension of the powers of the Treasury to cover much domestic policy and by transferring responsibility for banking supervision to the Financial Services Authority.
Controversial moves included the abolition of advance corporation tax relief in his first budget, the removal in his final budget of the 10% "starting rate" of personal income tax which he had introduced in 1999. In 2007, Tony Blair resigned as Prime Minister and Labour Leader and Brown was chosen to replace him in an uncontested election. After initial rises in opinion polls following Brown becoming Prime Minister, Labour's popularity declined with the onset of a recession in 2008, leading to poor results in the local and European elections in 2009. A year Labour lost 91 seats in the House of Commons at the 2010 general election, the party's biggest loss of seats in a single general election since 1931, making the Conservatives the largest party in a hung parliament. Brown remained in office as Labour negotiated to form a coalition government with the Liberal Democrats. On 10 May 2010, Brown announced he would stand down as leader of the Labour Party, instructed the party to put into motion the processes to elect a new leader.
Labour's attempts to retain power failed and on 11 May, he resigned as Prime Minister and Leader of the Labour Party. He was succeeded as Prime Minister by David Cameron, as Leader of the Labour Party by Ed Miliband. Brown played a prominent role in the campaign surrounding the Scottish independence referendum of 2014, galvanising support behind maintaining the union. Brown was born at the Orchard Maternity Nursing Home in Giffnock, Scotland, his father was John Ebenezer Brown, a minister of the Church of Scotland and a strong influence on Brown. His mother was Jessie Elizabeth "Bunty" Brown, she was the daughter of a timber merchant. The family moved to Kirkcaldy – the largest town in Fife, across the Firth of Forth from Edinburgh – when Gordon was three. Brown was brought up there with younger brother Andrew Brown in a manse. Brown was educated first at Kirkcaldy West Primary School where he was selected for an experimental fast stream education programme, which took him two years early to Kirkcaldy High School for an academic hothouse education taught in separate classes.
At age sixteen he wrote that he resented this "ludicrous" experiment on young lives. He was accepted by the University of Edinburgh to study history at the same early age of sixteen. During an end-of-term rugby union match at his old school, he received a kick to the head and suffered a retinal detachment; this left him blind in his left eye, despite treatment including several operations and weeks spent lying in a darkened room. At Edinburgh, while playing tennis, he noticed the same symptoms in his right eye. Brown underwent experimental surgery at the Edinburgh Royal Infirmary and his right eye was saved by a young eye surgeon, Hector Chawla. Brown graduated from Edinburgh with a First-Class Honours MA degree in history in 1972, stayed on to obtain his PhD in history, titled The Labour Party and Political Change in Scotland 1918–29. In his youth at the University of Edinburgh, Brown was involved in a romantic relationship with Margarita, Crown Princess of Romania. Margarita said about it: "It was a solid and romantic story.
I never stopped loving him but one day it didn't seem right any more, it was politics, politics, I needed nurturing." An unnamed friend of those years is quoted by Paul Routledge in his biography of Brown as recalling: "She was sweet and gentle and cut out to make somebody a good wife. She was bright, though not like him, but they seemed made for each other."In 1972, while still a student, Brown was elected Rector of the University of Edinburgh, the convener of the University Court. He served as Rector until 1975, edited the document The Red Paper on Scotland. From 1976 to 1980 Brown was employed as a lecturer in politics at Glasgow College of Technology, he worked as a tutor for the Open University. In the 1979 general election, Brown stood for the Edinburgh South constituency, losing to the Conservative candidate, Michael Ancram. From 1980, he worked as a journalist at Scottish Television serving as current affairs editor until his election to Parliament in 1983. Brown was elected to Parliament on his second attempt as a Labour MP for Dunfermline East in the 1983 general election.
His first Westminster office mate was a newly elected MP from the Sedgefield constituency, Tony Blair. Brown became an opposition spokesman on Trade and Industry in 1985. In
A bank is a financial institution that accepts deposits from the public and creates credit. Lending activities can be performed either indirectly through capital markets. Due to their importance in the financial stability of a country, banks are regulated in most countries. Most nations have institutionalized a system known as fractional reserve banking under which banks hold liquid assets equal to only a portion of their current liabilities. In addition to other regulations intended to ensure liquidity, banks are subject to minimum capital requirements based on an international set of capital standards, known as the Basel Accords. Banking in its modern sense evolved in the 14th century in the prosperous cities of Renaissance Italy but in many ways was a continuation of ideas and concepts of credit and lending that had their roots in the ancient world. In the history of banking, a number of banking dynasties – notably, the Medicis, the Fuggers, the Welsers, the Berenbergs, the Rothschilds – have played a central role over many centuries.
The oldest existing retail bank is Banca Monte dei Paschi di Siena, while the oldest existing merchant bank is Berenberg Bank. The concept of banking may have begun in ancient Assyria and Babylonia, with merchants offering loans of grain as collateral within a barter system. Lenders in ancient Greece and during the Roman Empire added two important innovations: they accepted deposits and changed money. Archaeology from this period in ancient China and India shows evidence of money lending. More modern banking can be traced to medieval and early Renaissance Italy, to the rich cities in the centre and north like Florence, Siena and Genoa; the Bardi and Peruzzi families dominated banking in 14th-century Florence, establishing branches in many other parts of Europe. One of the most famous Italian banks was the Medici Bank, set up by Giovanni di Bicci de' Medici in 1397; the earliest known state deposit bank, Banco di San Giorgio, was founded in 1407 at Italy. Modern banking practices, including fractional reserve banking and the issue of banknotes, emerged in the 17th and 18th centuries.
Merchants started to store their gold with the goldsmiths of London, who possessed private vaults, charged a fee for that service. In exchange for each deposit of precious metal, the goldsmiths issued receipts certifying the quantity and purity of the metal they held as a bailee; the goldsmiths began to lend the money out on behalf of the depositor, which led to the development of modern banking practices. The goldsmith paid interest on these deposits. Since the promissory notes were payable on demand, the advances to the goldsmith's customers were repayable over a longer time period, this was an early form of fractional reserve banking; the promissory notes developed into an assignable instrument which could circulate as a safe and convenient form of money backed by the goldsmith's promise to pay, allowing goldsmiths to advance loans with little risk of default. Thus, the goldsmiths of London became the forerunners of banking by creating new money based on credit; the Bank of England was the first to begin the permanent issue of banknotes, in 1695.
The Royal Bank of Scotland established the first overdraft facility in 1728. By the beginning of the 19th century a bankers' clearing house was established in London to allow multiple banks to clear transactions; the Rothschilds pioneered international finance on a large scale, financing the purchase of the Suez canal for the British government. The word bank was taken Middle English from Middle French banque, from Old Italian banco, meaning "table", from Old High German banc, bank "bench, counter". Benches were used as makeshift desks or exchange counters during the Renaissance by Jewish Florentine bankers, who used to make their transactions atop desks covered by green tablecloths; the definition of a bank varies from country to country. See the relevant country pages under for more information. Under English common law, a banker is defined as a person who carries on the business of banking by conducting current accounts for his customers, paying cheques drawn on him/her and collecting cheques for his/her customers.
In most common law jurisdictions there is a Bills of Exchange Act that codifies the law in relation to negotiable instruments, including cheques, this Act contains a statutory definition of the term banker: banker includes a body of persons, whether incorporated or not, who carry on the business of banking'. Although this definition seems circular, it is functional, because it ensures that the legal basis for bank transactions such as cheques does not depend on how the bank is structured or regulated; the business of banking is in many English common law countries not defined by statute but by common law, the definition above. In other English common law jurisdictions there are statutory definitions of the business of banking or banking business; when looking at these definitions it is important to keep in mind that they are defining the business of banking for the purposes of the legislation, not in general. In particular, most of the definitions are from legislation that has the purpose of regulating and supervising banks rather than regulating the actual business of banking.
However, in many cases the statutory definition mirrors the common law one. Examples of statutory definitions: "banking business" means the business of receiving money on current or deposit account and collecting cheques drawn by or paid in by customers, the making
Lloyds Bank plc is a British retail and commercial bank with branches across England and Wales. It has traditionally been considered one of the "Big Four" clearing banks; the bank was founded in Birmingham in 1765. It expanded during the nineteenth and twentieth centuries and took over a number of smaller banking companies. In 1995 it merged with the Trustee Savings Bank and traded as Lloyds TSB Bank plc between 1999 and 2013; the bank is the principal subsidiary of Lloyds Banking Group, formed in January 2009 by the acquisition of HBOS by the then-Lloyds TSB Group. That year, following the UK bank rescue package, the British Government took a 43.4% stake in Lloyds Banking Group. As a condition imposed by the European Commission regarding state aid, the group announced that it would create a new standalone retail banking business, made up of a number of Lloyds TSB branches and those of Cheltenham & Gloucester; the new business began operations on 9 September 2013 under the TSB brand. Lloyds TSB was subsequently renamed Lloyds Bank on 23 September 2013.
On 17 March 2017, the British Government confirmed its remaining shares in Lloyds Banking Group had been sold. Lloyds Bank is the largest retail bank in Britain, has an extensive network of branches and ATM in England and Wales and offers 24-hour telephone and online banking services; as of 2012 it has 16 million small business accounts. It has other offices in Wales and Scotland, it operates a number of office complex, brand headquarters and data centres in Yorkshire including Leeds and Halifax. The origins of Lloyds Bank date from 1765, when button maker John Taylor and Quaker iron producer and dealer Sampson Lloyd set up a private banking business in Dale End, Birmingham; the first branch office opened in Oldbury, some six miles west of Birmingham, in 1864. The symbol adopted by Taylors and Lloyds was the beehive, representing hard work; the black horse regardant device dates from 1677, when Humphrey Stokes adopted it as sign for his shop. Stokes was a goldsmith and "keeper of the running cashes" and the business became part of Barnett, Hoares & Co.
When Lloyds took over that bank in 1884, it continued to trade "at the sign of the black horse". The association with the Tailor family ended in 1852 and, in 1865, Lloyds & Co. converted into a joint-stock company known as Lloyds Banking Company Ltd. The first report of the company in 1865 stated:LLOYDS BANKING COMPANY LIMITED – Authorized Capital £2,000,000. FOUNDED ON The Private Banks of Messrs. Lloyds & Co. and Messrs. Moilliet and Sons, with-which have subsequently been amalgamated the Banks of Messrs. P. H. Williams and Messrs. Stevenson, Salt, & Co. Stafford and Lichfield. Your Directors have the satisfaction to report that they have concluded an agreement with the well-known and old-established firm of Messrs. Stevenson, Salt & Company for the amalgamation with this Company of their Banking Business at Stafford, Lichfield and Eccleshall, that this agreement has had the unanimous approval of the Extraordinary General Meeting held on 31st January last, it will be again submitted to you for final confirmation after the close of the Ordinary General Meeting.
TIMOTHY KENRICK, Chairman. BIRMINGHAM, 9th February 1866Two sons of the original partners followed in their footsteps by joining the established merchant bank Barnett, Hoares & Co. which became Barnetts, Hoares and Lloyd— based in Lombard Street, London. This became absorbed into the original Lloyds Banking Company, which became Lloyds and Bosanquets Bank Ltd. in 1884. And Lloyds Bank Limited in 1889. Through a series of mergers, including Cunliffe, Brooks in 1900, the Wilts. and Dorset Bank in 1914 and, by far the largest, the Capital and Counties Bank in 1918, Lloyds emerged to become one of the "Big Four" clearing banks in the United Kingdom. By 1923, Lloyds Bank had made some 50 takeovers, one of, the last private firm to issue its own banknotes—Fox and Company of Wellington, Somerset. Today, the Bank of England has a monopoly of banknote issue in Wales. In 2011, the company founded SGH Martineau LLP. In 1968, a failed attempt at merger with Barclays and Martins Bank was deemed to be against the public interest by the Monopolies and Mergers Commission.
Barclays acquired Martins the following year. In 1972, Lloyds Bank was a founding member of the Joint Credit Card Company which launched the Access credit card; that same year it introduced Cashpoint, the first online cash machine to use plastic cards with a magnetic stripe. In popular use, the Cashpoint trademark has become a generic term for an ATM in the United Kingdom. Under the leadership of Sir Brian Pitman between 1984 and 1997, the bank's business focus was narrowed and it reacted to disastrous lending to South American states by trimming its overseas businesses and seeking growth through mergers with other UK banks. During this period, Pitman tried unsuccessfully to acquire The Royal Bank of Scotland in 1984, Standard Chartered in 1986, Midland Bank in 1992. Lloyds Bank International merged into Lloyds Bank in 1986, since there was no longer an advantage in operating separately. In 1988, Lloyds merged five of its businesses with the Abbey Life Insurance Company to create Lloyds Abbey Life.
The bank merged first with the newly demutualised Cheltenham & Gloucester Building Society with the TSB Group
House of Commons of the United Kingdom
The House of Commons is the lower house of the Parliament of the United Kingdom. Like the upper house, the House of Lords, it meets in the Palace of Westminster; the full name of the house is the Honourable the Commons of the United Kingdom of Great Britain and Northern Ireland in Parliament assembled. Owing to shortage of space, its office accommodation extends into Portcullis House; the Commons is an elected body consisting of 650 members known as Members of Parliament. Members are elected to represent constituencies by the first-past-the-post system and hold their seats until Parliament is dissolved; the House of Commons of England started to evolve in 14th centuries. It became the House of Commons of Great Britain after the political union with Scotland in 1707, assumed the title of "House of Commons of Great Britain and Ireland" after the political union with Ireland at the start of the 19th century; the "United Kingdom" referred to was the United Kingdom of Great Britain and Ireland from 1800, became the United Kingdom of Great Britain and Northern Ireland after the independence of the Irish Free State in 1922.
Accordingly, the House of Commons assumed its current title. Under the Parliament Act 1911, the Lords' power to reject legislation was reduced to a delaying power; the Government is responsible to the House of Commons and the Prime Minister stays in office only as long as she or he retains the confidence of a majority of the Commons. Although it does not formally elect the prime minister, the position of the parties in the House of Commons is of overriding importance. By convention, the prime minister is answerable to, must maintain the support of, the House of Commons. Thus, whenever the office of prime minister falls vacant, the Sovereign appoints the person who has the support of the House, or, most to command the support of the House—normally the leader of the largest party in the Commons, while the leader of the second-largest party becomes the Leader of the Opposition. Since 1963, by convention, the prime minister is always a member of the House of Commons, rather than the House of Lords.
The Commons may indicate its lack of support for the Government by rejecting a motion of confidence or by passing a motion of no confidence. Confidence and no confidence motions are phrased explicitly, for instance: "That this House has no confidence in Her Majesty's Government." Many other motions were until recent decades considered confidence issues though not explicitly phrased as such: in particular, important bills that were part of the Government's agenda. The annual Budget is still considered a matter of confidence; when a Government has lost the confidence of the House of Commons, the prime minister is obliged either to resign, making way for another MP who can command confidence, or to request the monarch to dissolve Parliament, thereby precipitating a general election. Parliament sits for a maximum term of five years. Subject to that limit, the prime minister could choose the timing of the dissolution of parliament, with the permission of the Monarch. However, since the Fixed-Term Parliaments Act 2011, terms are now a fixed five years, an early general election is brought about by a two-thirds majority in favour of a motion for a dissolution, or by a vote of no confidence, not followed within fourteen days by a vote of confidence.
By this second mechanism, the UK's government can change its political composition without an intervening general election. Only four of the eight last Prime Ministers have attained office as the immediate result of a general election; the latter four were Jim Callaghan, John Major, Gordon Brown and the current Prime Minister Theresa May. In such circumstances there may not have been an internal party leadership election, as the new leader may be chosen by acclaim, having no electoral rival. A prime minister will resign after party defeat at an election if unable to lead a coalition, or obtain a confidence and supply arrangement, she or he may resign after a motion of no confidence or for health reasons. In such cases, the premiership goes to, it has become the practice to write the constitution of major UK political parties to provide a set way in which to appoint a new leader. Until 1965, the Conservative Party had no fixed mechanism for this, it fell to the Queen to appoint Harold Macmillan as the new prime minister, after taking the consensus of cabinet ministers.
By convention, ministers are members of the House of House of Lords. A handful have been appointed who were outside Parliament, but in most cases they entered Parliament in a by-election or by receiving a peerage. Exceptions include Peter Mandelson, appointed Secretary of State for Business and Regulatory Reform in October 2008 before his peerage. Since 1902, all prime ministers have been members of the Commons; the new session of Parliament was delayed to await the outcome of his by-election, which happened
The Financial Times is an English-language international daily newspaper owned by Nikkei Inc, headquartered in London, with a special emphasis on business and economic news. The paper was founded in 1888 by James Sheridan and Horatio Bottomley, merged in 1945 with its closest rival, the Financial News; the Financial Times has over 740,000 digital subscribers. On 23 July 2015, Nikkei Inc. agreed to buy the Financial Times from Pearson for £844m and the acquisition was completed on 30 November 2015. The FT was launched as the London Financial Guide on 10 January 1888, renaming itself the Financial Times on 13 February the same year. Describing itself as the friend of "The Honest Financier, the Bona Fide Investor, the Respectable Broker, the Genuine Director, the Legitimate Speculator", it was a four-page journal; the readership was the financial community of the City of London, its only rival being the older and more daring Financial News. On 2 January 1893 the FT began printing on light salmon-pink paper to distinguish it from the named Financial News: at the time it was cheaper to print on unbleached paper, but nowadays it is more expensive as the paper has to be dyed specially.
After 57 years of rivalry the Financial Times and the Financial News were merged in 1945 by Brendan Bracken to form a single six-page newspaper. The Financial Times brought a higher circulation while the Financial News provided much of the editorial talent; the Lex column was introduced from Financial News. Pearson bought the paper in 1957. Over the years the paper grew in size and breadth of coverage, it established correspondents in cities around the world, reflecting a renewed impetus in the world economy towards globalisation. As cross-border trade and capital flows increased during the 1970s, the FT began international expansion, facilitated by developments in technology and the growing acceptance of English as the international language of business. On 1 January 1979 the first FT was printed in Frankfurt. Since with increased international coverage, the FT has become a global newspaper, printed in 22 locations with five international editions to serve the UK, continental Europe, the U. S.
Asia and the Middle East. The European edition is distributed in continental Africa, it is printed Monday to Saturday at five centres across Europe reporting on matters concerning the European Union, the Euro and European corporate affairs. In 1994 FT launched a luxury lifestyle magazine. In 2009 it launched a standalone website for the magazine. On 13 May 1995 the Financial Times group made its first foray into the online world with the launch of FT.com. This provided a summary of news from around the globe, supplemented in February 1996 with stock price coverage; the site was funded by advertising and contributed to the online advertising market in the UK in the late 1990s. Between 1997 and 2000 the site underwent several revamps and changes of strategy, as the FT Group and Pearson reacted to changes online. FT introduced subscription services in 2002. FT.com is one of the few UK news sites funded by individual subscription. In 1997 the FT launched a U. S. edition, printed in New York, Los Angeles, San Francisco, Atlanta and Washington, D.
C. although the newspaper was first printed outside New York City in 1985. In September 1998 the FT became the first UK-based newspaper to sell more copies internationally than within the UK. In 2000 the Financial Times started publishing a German-language edition, Financial Times Deutschland, with a news and editorial team based in Hamburg, its initial circulation in 2003 was 90,000. It was a joint venture with a German publishing firm, Gruner + Jahr. In January 2008 the FT sold its 50% stake to its German partner. FT Deutschland never made a profit and is said to have accumulated losses of €250 million over 12 years, it closed on 7 December 2012. The Financial Times launched a new weekly supplement for the fund management industry on 4 February 2002. FT fund management was and still is distributed with the paper every Monday. FTfm is the world's largest-circulation fund management title. Since 2005 the FT has sponsored the annual"Financial Times" and Goldman Sachs Business Book of the Year Award.
On 23 April 2007 the FT unveiled a "refreshed" version of the newspaper and introduced a new slogan, "We Live in Financial Times."In 2007 the FT pioneered a metered paywall, which lets visitors to its site read a limited number of free articles during any one month before asking them to pay. Four years the FT launched its HTML5 mobile internet app. Smartphones and tablets now drive 19 % of traffic to FT.com. In 2012 the number of digital subscribers surpassed the circulation of the newspaper for the first time and the FT drew half of its revenue from subscriptions rather than advertising. Since 2010 the FT has been available on Bloomberg Terminal. Since 2013 the FT has been available on Wisers platform. In 2016, the Financial Times acquired a controlling stake in Alpha Grid, a London-based media company specialising in the development and production of quality branded content across a range of channels, including broadcast, digital and events. In 2018, the Financial Times acquired a controlling stake in Longitude, a specialist provider of thought leadership and research services to a multinational corporate and institutional client base.
This investment builds on the Financial Times’ recent growth in sev
United States dollar
The United States dollar is the official currency of the United States and its territories per the United States Constitution since 1792. In practice, the dollar is divided into 100 smaller cent units, but is divided into 1000 mills for accounting; the circulating paper money consists of Federal Reserve Notes that are denominated in United States dollars. Since the suspension in 1971 of convertibility of paper U. S. currency into any precious metal, the U. S. dollar is, de facto, fiat money. As it is the most used in international transactions, the U. S. dollar is the world's primary reserve currency. Several countries use it as their official currency, in many others it is the de facto currency. Besides the United States, it is used as the sole currency in two British Overseas Territories in the Caribbean: the British Virgin Islands and Turks and Caicos Islands. A few countries use the Federal Reserve Notes for paper money, while still minting their own coins, or accept U. S. dollar coins. As of June 27, 2018, there are $1.67 trillion in circulation, of which $1.62 trillion is in Federal Reserve notes.
Article I, Section 8 of the U. S. Constitution provides that the Congress has the power "To coin money". Laws implementing this power are codified at 31 U. S. C. § 5112. Section 5112 prescribes the forms; these coins are both designated in Section 5112 as "legal tender" in payment of debts. The Sacagawea dollar is one example of the copper alloy dollar; the pure silver dollar is known as the American Silver Eagle. Section 5112 provides for the minting and issuance of other coins, which have values ranging from one cent to 100 dollars; these other coins are more described in Coins of the United States dollar. The Constitution provides that "a regular Statement and Account of the Receipts and Expenditures of all public Money shall be published from time to time"; that provision of the Constitution is made specific by Section 331 of Title 31 of the United States Code. The sums of money reported in the "Statements" are being expressed in U. S. dollars. The U. S. dollar may therefore be described as the unit of account of the United States.
The word "dollar" is one of the words in the first paragraph of Section 9 of Article I of the Constitution. There, "dollars" is a reference to the Spanish milled dollar, a coin that had a monetary value of 8 Spanish units of currency, or reales. In 1792 the U. S. Congress passed a Coinage Act. Section 9 of that act authorized the production of various coins, including "DOLLARS OR UNITS—each to be of the value of a Spanish milled dollar as the same is now current, to contain three hundred and seventy-one grains and four sixteenth parts of a grain of pure, or four hundred and sixteen grains of standard silver". Section 20 of the act provided, "That the money of account of the United States shall be expressed in dollars, or units... and that all accounts in the public offices and all proceedings in the courts of the United States shall be kept and had in conformity to this regulation". In other words, this act designated the United States dollar as the unit of currency of the United States. Unlike the Spanish milled dollar, the U.
S. dollar is based upon a decimal system of values. In addition to the dollar the coinage act established monetary units of mill or one-thousandth of a dollar, cent or one-hundredth of a dollar, dime or one-tenth of a dollar, eagle or ten dollars, with prescribed weights and composition of gold, silver, or copper for each, it was proposed in the mid-1800s that one hundred dollars be known as a union, but no union coins were struck and only patterns for the $50 half union exist. However, only cents are in everyday use as divisions of the dollar. XX9 per gallon, e.g. $3.599, more written as $3.599⁄10. When issued in circulating form, denominations equal to or less than a dollar are emitted as U. S. coins while denominations equal to or greater than a dollar are emitted as Federal Reserve notes. Both one-dollar coins and notes are produced today, although the note form is more common. In the past, "paper money" was issued in denominations less than a dollar and gold coins were issued for circulation up to the value of $20.
The term eagle was used in the Coinage Act of 1792 for the denomination of ten dollars, subsequently was used in naming gold coins. Paper currency less than one dollar in denomination, known as "fractional currency", was sometimes pejoratively referred to as "shinplasters". In 1854, James Guthrie Secretary of the Treasury, proposed creating $100, $50 and $25 gold coins, which were referred to as a "Union", "Half Union", "Quarter Union", thus implying a denomination of 1 Union = $100. Today, USD notes are made from cotton fiber paper, unlike most common paper, made of wood fiber. U. S. coins are produced by the United States Mint. U. S. dollar banknotes are printed by the Bureau of Engraving and Printing and, since 1914, have been issued by t
A dividend is a payment made by a corporation to its shareholders as a distribution of profits. When a corporation earns a profit or surplus, the corporation is able to re-invest the profit in the business and pay a proportion of the profit as a dividend to shareholders. Distribution to shareholders may be in cash or, if the corporation has a dividend reinvestment plan, the amount can be paid by the issue of further shares or share repurchase; when dividends are paid, shareholders must pay income taxes, the corporation does not receive a corporate income tax deduction for the dividend payments. A dividend is allocated as a fixed amount per share with shareholders receiving a dividend in proportion to their shareholding. For the joint-stock company, paying dividends is not an expense. Retained earnings are shown in the shareholders' equity section on the company's balance sheet – the same as its issued share capital. Public companies pay dividends on a fixed schedule, but may declare a dividend at any time, sometimes called a special dividend to distinguish it from the fixed schedule dividends.
Cooperatives, on the other hand, allocate dividends according to members' activity, so their dividends are considered to be a pre-tax expense. The word "dividend" comes from the Latin word "dividendum". In financial history of the world, the Dutch East India Company was the first recorded company to pay regular dividends; the VOC paid annual dividends worth around 18 percent of the value of the shares for 200 years of existence. Cash dividends are the most common form of payment and are paid out in currency via electronic funds transfer or a printed paper check; such dividends are a form of investment income and are taxable to the recipient in the year they are paid. This is the most common method of sharing corporate profits with the shareholders of the company. For each share owned, a declared amount of money is distributed. Thus, if a person owns 100 shares and the cash dividend is 50 cents per share, the holder of the stock will be paid $50. Dividends paid are not classified as an expense, but rather a deduction of retained earnings.
Dividends paid does appear on the balance sheet. Stock or scrip dividends are those paid out in the form of additional stock shares of the issuing corporation, or another corporation, they are issued in proportion to shares owned. Nothing tangible will be gained if the stock is split because the total number of shares increases, lowering the price of each share, without changing the market capitalization, or total value, of the shares held. Stock dividend distributions do not affect the market capitalization of a company. Stock dividends are not includable in the gross income of the shareholder for US income tax purposes; because the shares are issued for proceeds equal to the pre-existing market price of the shares. Property dividends or dividends in specie are those paid out in the form of assets from the issuing corporation or another corporation, such as a subsidiary corporation, they are rare and most are securities of other companies owned by the issuer, however they can take other forms, such as products and services.
Interim dividends are dividend payments made before a company's Annual General Meeting and final financial statements. This declared dividend accompanies the company's interim financial statements. Other dividends can be used in structured finance. Financial assets with a known market value can be distributed as dividends. For large companies with subsidiaries, dividends can take the form of shares in a subsidiary company. A common technique for "spinning off" a company from its parent is to distribute shares in the new company to the old company's shareholders; the new shares can be traded independently. The most popular metric to determine the dividend coverage is the payout ratio. Most the payout ratio is calculated based on earnings per share: Payout ratio = x 100A payout ratio greater than 1 means the company is paying out more in dividends for the year than it earned. Dividends are paid in cash. On the other hand, earnings are an accountancy measure and do not represent the actual cash-flow of a company.
Hence, a more liquidity-driven way to determine the dividend’s safety is to replace earnings by free cash flow. The free cash flow represents the company’s available cash based on its operating business after investments: Payout Ratio = x 100 A dividend, declared must be approved by a company's board of directors before it is paid. For public companies, four dates are relevant regarding dividends:Declaration date — the day the board of directors announces its intention to pay a dividend. On that day, a liability is created and the company records that liability on its books. In-dividend date — the last day, one trading day before the ex-dividend date, where the stock is said to be cum dividend. In other words, existing holders of the stock and anyone who buys it on this day will receive the dividend, whereas any holders selling the stock lose their right to t