A public company, publicly traded company, publicly held company, publicly listed company, or public limited company is a corporation whose ownership is dispersed among the general public in many shares of stock which are traded on a stock exchange or in over the counter markets. In some jurisdictions, public companies over a certain size must be listed on an exchange. A public company can be unlisted. Public companies are formed within the legal systems of particular nations, therefore have national associations and formal designations which are distinct and separate. For example one of the main public company forms in the United States is called a limited liability company, in France is called a "society of limited responsibility", in Britain a public limited company, in Germany a company with limited liability. While the general idea of a public company may be similar, differences are meaningful, are at the core of international law disputes with regard to industry and trade. In the early modern period, the Dutch developed several financial instruments and helped lay the foundations of modern financial system.
The Dutch East India Company became the first company in history to issue bonds and shares of stock to the general public. In other words, the VOC was the first publicly traded company, because it was the first company to be actually listed on an official stock exchange. While the Italian city-states produced the first transferable government bonds, they did not develop the other ingredient necessary to produce a fledged capital market: corporate shareholders; as Edward Stringham notes, "companies with transferable shares date back to classical Rome, but these were not enduring endeavors and no considerable secondary market existed." The securities of a publicly traded company are owned by many investors while the shares of a held company are owned by few shareholders. A company with many shareholders is not a publicly traded company. In the United States, in some instances, companies with over 500 shareholders may be required to report under the Securities Exchange Act of 1934. Public companies possess some advantages over held businesses.
Publicly traded companies are able to raise funds and capital through the sale of shares of stock. This is the reason publicly traded corporations are important; the profit on stock is gained in form of capital gain to the holders. The financial media and the public are able to access additional information about the business, since the business is legally bound, motivated, to publicly disseminate information regarding the financial status and future of the company to its many shareholders and the government; because many people have a vested interest in the company's success, the company may be more popular or recognizable than a private company. The initial shareholders of the company are able to share risk by selling shares to the public. If one were to hold a 100% share of the company, he or she would have to pay all of the business's debt; this increases asset liquidity and the company does not need to depend on funding from a bank. For example, in 2013 Facebook founder Mark Zuckerberg owned 29.3% of the company's class A shares, which gave him enough voting power to control the business, while allowing Facebook to raise capital from, distribute risk to, the remaining shareholders.
Facebook was a held company prior to its initial public offering in 2012. If some shares are given to managers or other employees, potential conflicts of interest between employees and shareholders will be remitted; as an example, in many tech companies, entry-level software engineers are given stock in the company upon being hired. Therefore, the engineers have a vested interest in the company succeeding financially, are incentivized to work harder and more diligently to ensure that success. Many stock exchanges require that publicly traded companies have their accounts audited by outside auditors, publish the accounts to their shareholders. Besides the cost, this may make useful information available to competitors. Various other annual and quarterly reports are required by law. In the United States, the Sarbanes–Oxley Act imposes additional requirements; the requirement for audited books is not imposed by the exchange known as OTC Pink. The shares may be maliciously held by outside shareholders and the original founders or owners may lose benefits and control.
The principal-agent problem, or the agency problem is a key weakness of public companies. The separation of a company's ownership and control is prevalent in such countries as U. K and U. S. In the United States, the Securities and Exchange Commission requires that firms whose stock is traded publicly report their major shareholders each year; the reports identify all institutional shareholders, all company officials who own shares in their firm, any individual or institution owning more than 5% of the firm's stock. For many years, newly created companies were held but held initial
San Miguel Brewery
San Miguel Brewery Inc. is a subsidiary of San Miguel Corporation and jointly owned with Kirin Holdings Co. Ltd; the company is the Philippines’ largest brewery with a market share of over 95% as of 2008. The company operates in China and Southeast Asia; the first San Miguel Brewery, Inc. was founded as La Fábrica de Cerveza San Miguel in 1890 by Enrique María Barreto under a Spanish Royal Charter that permitted the brewing of beer in the Philippines and incorporated as the first San Miguel Brewery, Inc. in 1913. It was renamed San Miguel Corporation in 1963, having grown into one of the Philippines' largest business conglomerates with core interests in alcoholic and non-alcoholic beverages and packaging; the breweries operated as the beer division of SMC until 2007. The present San Miguel Brewery, Inc. was incorporated on July 26, 2007 as a subsidiary of SMC and the domestic beer business was spun off into San Miguel Brewery, Inc. on October 1, 2007. In 2009, Kirin Holdings Co. Ltd. of Japan acquired 48.3% of San Miguel Brewery, Inc. from SMC for PHP 8.841 per share.
In 2010, San Miguel Brewery, Inc. acquired 100% ownership of San Miguel Brewing International Ltd. from SMC. The acquisition of SMBIL enabled San Miguel Brewery, Inc. to achieve full integration of its domestic and international beer businesses. SMBIL oversees operations in Hong Kong, People’s Republic of China, Indonesia and Vietnam. On November 6, 2017, SMC announced the consolidation of its beverage businesses into San Miguel Pure Foods Company, Inc. through a share swap deal. San Miguel Pure Foods Company, Inc. will acquire 7.86 billion shares in San Miguel Brewery, Inc. from SMC. As a result, San Miguel Pure Foods Company, Inc. will own 51 % of Inc.. After the consolidation, San Miguel Pure Foods Company, Inc. will be renamed San Miguel Food and Beverage, Inc. The marker of Fábrica de Cerveza de San Miguel was installed in 1950 at General Solano Street, San Miguel, Manila, it was installed by the Philippines Historical Committee. On September 29, 2015, during the 125th anniversary of the founding of San Miguel Brewery, the National Historical Commission of the Philippines installed a historical marker on the San Miguel Headquarters in Mandaluyong City.
San Miguel Brewery, Inc. became listed in the Philippine Stock Exchange on 12 May 2008. On 2 January 2013, trading of its stock was suspended when the rule on the minimum public ownership of listed shares took effect. On 18 February 2013, the company announced that its board of directors had approved the voluntary de-listing of the company from the stock exchange as well as a tender offer to buy back 94.24 million shares – representing the 0.61% public float. On 24 April 2013, the PSE board granted the petition for voluntary delisting filed by the company to take effect on 15 May 2013. Beer: San Miguel Pale Pilsen San Miguel Premium All-Malt Beer San Miguel Super Dry San Miguel Flavored Beer San Mig Light San Mig Strong Ice San Mig Zero Cerveza Negra Red Horse Extra Strong Beer Gold Eagle Beer Cali Cali Ice Cali Light Blue Ice BeerNon-alcoholic beverages: Magnolia Fruit Drink Magnolia Health Tea Berri Juice San Mig Cola SMB operates six breweries in the Philippines: Polo Brewery Santa Rosa Brewery San Fernando Brewery Mandaue Brewery Bacolod Brewery Davao Brewery San Miguel Brewing International Ltd. is a wholly owned subsidiary of SMB which operates subsidiaries in the following countries: Hong Kong and China: San Miguel Brewery Hong Kong Ltd.
San Miguel Brewery Company Ltd. – subsidiary of SMBHK Guangzhou San Miguel Brewery Company Ltd. – subsidiary of SMBHK San Miguel Baoding Brewery Company Ltd. Indonesia: PT Delta Djakarta TbkVietnam: San Miguel Brewery Vietnam Ltd. Thailand: San Miguel Beer Ltd. NOTE: San Miguel Beer is produced in Nepal through a licensing agreement with Gorkha Brewery since 2004. San Miguel Pale Pilsen San Miguel Premium All-Malt San Mig Light Blue Ice Bruck Knight Polar Ice Valor Double Happiness Beer Dragon Beer Blue Star Super Cool W1N Bia Dzo Anker Beer Kudah Putih Softdrink: Sodaku Carbonated water: Soda Ice As part of its overseas expansion, San Miguel began its foray into the Spanish market in 1953, setting up the company which would become San Miguel Spain. Since 1946, there has been a company engaged in the production of malt for medicinal purposes known as La Segarra. In the early 1950s, its key shareholders Enrique Suárez Rezona, Ramón Vidal and Jaime Muñiz made contact with Andrés Soriano president of San Miguel Brewery, to allow them to produce beer under the San Miguel name in Spain.
In 1953, San Miguel Brewery, Inc. signed the “Manila Agreement”, with the Philippine brewer setting up a new Spanish brewery, La Segarra, S. A.. The company would be renamed San Miguel Fábricas de Cerveza y Malta, S. A. in 1957, an affiliate of San Miguel Brewery, Inc. which held 20% equity share via its Hong Kong subsidiary. The company was acquired by Mahou, S. A. from Groupe Danone in 2000, combining to form Spain’s largest brewer, the Mahou-San Miguel Group. On 26 February 2014, San Miguel and Mahou-San Miguel signed a co-operation agreement to promote jointly San Miguel Beer and expand its global footprint. San Miguel Beermen San Miguel Beermen (
Compañía General de Tabacos de Filipinas
The Compañía General de Tabacos de Filipinas, S. A. known as the Compañía Española de Tabacos de Filipinas, was the Philippines' first private tobacco company. Founded by Antonio López y López in Barcelona in 1881 and based in Manila, it is simply known as Tabacos de Filipinas in Spain, as La Tabacalera in the Philippines. Although the company today specializes in tobacco trading, over the years the company ran a shipping line and established factories with the aim of cultivating, trading and commercializing tobacco from the Philippines, it expanded its interests beyond tobacco, engaging in the exploitation of sugar and alcohol distribution, abacá and maguey, as well as owning significant interests in electricity generation and insurance. Owned by Spanish interests for most of its history, the Compañía General de Tabacos de Filipinas was in sharp decline between the 1950s and 1990s, during which it sold most of its ancillary businesses in the Philippines to focus on international tobacco trading.
In 2007, it merged with the Dutch tobacco trading company Lippoel Leaf, forming the CdF International Group, in 2011, CdF merged again with the American tobacco trading company Hail & Cotton, with the company itself continuing to exist as its Philippine subsidiary. Production and sale of tobacco products. Running an ocean line for the transport of merchandise and passengers. Commercializing forest products beginning in 1892. Production and sale of sugar and alcohol beginning in 1893. Production of copra. Production of abacá fibre known as'Manila hemp'. Production of maguey fibre. Regarding distribution, the company operated in three markets: Spanish market. European market, trading with countries like United Kingdom, the Netherlands, Portugal. Philippines, the rest of Asia and Oceania; the National Historical Institute issued a marker along Romualdez St. in Ermita, Manila in 1951. The marker commends the company for the important role it played in the economic development in the Philippines and for the company's fair treatment of its workers.
It notes that the reconstruction of its central office after World War II symbolizes the reemergence of the company as a key player in the country's progress. The Compañía General de Tabacos de Filipinas is credited to have organized the largest Filipiniana collection that the Philippine Government has acquired. Emili Giralt i Raventós, La Compañía General de Tabacos de Filipinas 1881- 1981. Barcelona. 1981. 1929 Barcelona International Exposition Compañía Transatlántica Española Media related to Compañía General de Tabacos de Filipinas at Wikimedia Commons ESTUDIO ECONÓMICO Y CONTABLE DE LA COMPAÑÍA GENERAL DE TABACOS DE FILIPINAS: 1881-1922 El Pais - Una historia colonial en La Rambla.
Philippine Stock Exchange
The Philippine Stock Exchange, Inc. is the national stock exchange of the Philippines. The exchange was created in 1992 from the merger of the Manila Stock Exchange and the Makati Stock Exchange. Including previous forms, the exchange has been in operation since 1927; the main index for PSE is the PSE Composite Index composed of thirty listed companies. The selection of companies in the PSEi is based on a specific set of criteria. There are six additional sector-based indices; the PSE is overseen by a 15-member Board of Directors, chaired by José T. Pardo. On February 3, 1936, the Securities and Exchange Commission announced that it had "relinquished control of the Manila Stock Exchange."The Philippine Stock Exchange was formed on December 23, 1992 from the merger of the Manila Stock Exchange and the Makati Stock Exchange. Both exchanges traded the same stocks of the same companies. In June 1998, the Securities and Exchange Commission granted the PSE a "Self-Regulatory Organization" status, which meant that the bourse can implement its own rules and establish penalties on erring trading participants and listed companies.
In 2001, the PSE was transformed from a non-profit, non-stock, member-governed organization into a shareholder-based, revenue-earning corporation headed by a president and a board of directors and on December 15, 2003 listed its own shares on the exchange. On January 4, 1993, the former Manila Stock Exchange started the computerization of its operations using the Stratus Trading System with a company called Equicom. On June 15, the former Makati Stock Exchange adopted the MakTrade trading system. Both systems were linked on March 1994 to produce a One Price-One Market exchange. Two years on November 13, 1995, the implementation of the Unified Trading System allowed the use of a single-order-book system on a MakTrade software where all the orders are posted and matched in one computer. In October 2004, the Securities Clearing Corporation of the Philippines, a clearing and settlement agency for depository eligible trades, became a wholly owned subsidiary of the PSE; the SCCP acts as the settlement coordinator and risk manager for broker transactions as well as administrator of the trade guaranty fund.
In 2005, the PSE adopted an online daily disclosure system to improve the transparency of listed companies and ensure full, fair and accurate disclosure of material information from all listed companies. The ODiSy provides a 24/7 online system access for the submission of all types of disclosures. On July 26, 2010, the PSE launched its new trading system, PSEtrade, which replaced the MakTrade system; the system was acquired from the New York Stock Exchange. On June 22, 2015, the PSE launch its new trading system, the PSEtrade XTS, which will replace the PSEtrade system acquired from the New York Stock Exchange; the new trading system will be acquired from the NASDAQ In 2016, The Marquee Awards of Alpha Southeast Asia magazine recognized PSE as the Best Stock Market in Southeast Asia for the year 2015. The Alpha Southeast Asia, Named PSE Again as the Best Stock Market in Southeast Asia in 2017, for 4 Times in 5 Years. In 2019, The PSE has introduced a new index that will help track the overall returns of the main index, The Total Return Index, as part of the efforts to create a broader investor base for the market.
On March 2, 2012, the PSE Composite hits 5,000 mark the highest record close. However, on December 12, 2012 ten months after, it neared the 5,800 mark closing in 6,000 near the end of the year. On January 7, 2013, the PSE Composite gets to all-time record at 6,000 mark. In March it again broke another record by ending the trading day at 6,847.47 after Fitch Group upgraded the Philippines for the first time to investment grade status. On May 10, 2013, it achieved its 29th record close for the year closing at 7,262.38, surpassing the previous record of 7,215.35 on May 3. On May 15, 2013, the PSEi hit its 30th all-time high of 7403.65 and ending the day at 7,392.2. However, the tapering by the Federal Reserves in the United States caused the PSEi to end at 5,889.83. On April 6, 2015, the PSE Composite the 8,000 mark and closes on another record by ending the trading day at 8,053.74. In 4 days it broke another record by ending the trading day at 8,127.48 On January 26, 2018, PSEi breached through 9000 for the first time, ending at 9,041.20, up by 42.03 points, or 0.47%.
Trading on the PSE pre-opens at 9:00 A. M.. M.. M.. M.. M.. M; the unified trading floor is now located in the Philippine Stock Exchange Tower, the new headquarters of The PSEi, located in One Bonifacio High Street, in Bonifacio Global City, replacing the two trading floors in Metro Manila: one at its headquarters at the PSE Plaza Ayala Triangle, Ayala Tower One in the Makati Central Business District. The PSE has eight constituent indices: PSE All Shares Index PSE Composite Index PSE Financials Index PSE Holding Firms Index PSE Industrial Index PSE Mining and Oil Index PSE Property Index PSE Services Index PSE Total Returns Index The PSEi is the main index of the PSE, while the All Shares Index is the broader index of the exchange; the remaining six indices are sector indices based on a company's mai
Nypa fruticans known as the nipa palm or mangrove palm, is a species of palm native to the coastlines and estuarine habitats of the Indian and Pacific Oceans. It is the only palm considered adapted to the mangrove biome; this species is the only member of the genus Nypa and the subfamily Nypoideae, forming monotypic taxa. The nipa palm's trunk grows beneath the ground and only the leaves and flower stalk grow upwards above the surface. Thus, it is an unusual palm tree, the leaves can extend up to 9 m in height; the flowers are a globular inflorescence of female flowers at the tip with catkin-like red or yellow male flowers on the lower branches. The flower produces; the ripe nuts separate from the ball and are floated away on the tide germinating while still water-borne. Nipa palms grow in slow-moving tidal and river waters that bring in nutrients; the palm can be found as far inland. It is common on coasts and rivers flowing into the Indian and Pacific Oceans, from India to the Pacific Islands.
The plant will survive occasional short-term drying of its environment. Despite the name "mangrove palm" and its prevalence in coastal areas, the nipa palm is only moderately salt tolerant and suffers if exposed to pure seawater, instead prefers the brackish waters of estuaries, it is considered native to China, the Ryukyu Islands, India, Sri Lanka, the Andaman and Nicobar Islands, Cambodia, Vietnam, Java, Malaya, the Philippines, Sumatra, the Bismarck Archipelago, New Guinea, the Solomon Islands, the Caroline Islands and the Australian Northern Territory. It is naturalized in Nigeria, the Society Islands of French Polynesia, the Mariana Islands and Trinidad. Japan's Iriomote Island and its neighboring Uchibanari Island are the most northern limit of the distribution; the long, feathery leaves of the nipa palm are used by local populations as roof material for thatched houses or dwellings. The leaves are used in many types of basketry and thatching. Large stems are used to train swimmers in Burma.
On the islands of Roti and Savu, nipa palm sap is fed to pigs during the dry season. This is said to impart a sweet flavour to the meat; the young leaves are used to wrap tobacco for smoking. In the Philippines and Malaysia, the flower cluster can be "tapped" to yield a sweet, edible sap collected to produce a local alcoholic beverage called tuba, bahal, or tuak. A fruit cluster is ready to be tapped; the cluster is cut from the stalk about six inches down and mud is rubbed on the stalk to induce sap flow, sap begins flowing if the fruit maturity was gauged. A bamboo tube or a bottle is fitted over the cut stalk and the sap collected twice daily, cutting a half centimeter slice off the end of the stalk after each collection to prevent it from gumming over. Sap flow will continue for 30 days per stalk, the nipa flowers continuously throughout the year providing a continuous supply of sap. Tuba can be stored in tapayan for several weeks to make a kind of vinegar known as sukang paombong in the Philippines and cuka nipah in Malaysia.
Tuba can be distilled to make arrack, locally known as lambanog in Filipino and arak or arak nipah in Indonesian. Young shoots are edible and the flower petals can be infused to make an aromatic tisane. Attap chee is a name for the immature fruits—sweet, gelatinous balls used as a dessert ingredient in Thailand, the Philippines, Singapore, that are a byproduct of the sap harvesting process. In Indonesia in Java and Bali, the sap can be used to make a variant of Jaggery called gula nipah. In Sarawak, where it is called gula apong; the nipa palm produces a high yield of sugar-rich sap. Fermented into ethanol or butanol, the sap may allow the production of 6,480–20,000 liters per hectare per year of fuel. By contrast sugarcane yields 5200 liters of ethanol per hectare per year and an equivalent area planted in corn would produce only 4000 liters per hectare per year, before accounting for the energy costs of the cultivation and alcohol extraction. Unlike corn and sugarcane, nipa palm sap requires little if any fossil fuel energy to produce from an established grove, does not require arable land, can make use of brackish water instead of freshwater resources.
Unlike most energy crops the nipa palm does not detract from food production to make fuel. In fact since nipa fruit is an inevitable byproduct of sap production as a crop it produces both food and fuel simultaneously. While only one species of Nypa now exists, N. fruticans, with a natural distribution extending from Northern Australia, through the Indonesian Archipelago, the Philippine Islands up to China, the genus Nypa once had a nearly global distribution in the Eocene. Fossil mangrove palm pollen from India has been dated to 70 million years. Fossil fruits and seeds of Nypa have been described from the Maastrichtian and Danian sediments of the Dakhla Formation of Bir Abu Minqar, South Western Desert, Egypt. Fossilized nuts of Nypa dating to the Eocene occur in the sandbeds of Branksome, in London Clay on the Isle of Sheppey, England. A fossil species, N. australis, has been described from Early Eocene sediments at Macquarie Harbour on the western coast of Tasmania. Fossils of Nypa have been recovered from throughout the New World, in North and South America, dating from
Metropolitan Manila is the seat of government and one of the three defined metropolitan areas of the Philippines. It is known as the National Capital Region, is known as Metro Manila or Manila, it is made up of 16 cities namely: the City of Manila, Quezon City, Las Piñas, Malabon, Marikina, Navotas, Parañaque, Pasig, San Juan and Valenzuela, as well as the municipality of Pateros. The region encompasses an area of 619.57 km2 and has a population of 12,877,253 as of 2015. It is the most densely populated region of the Philippines, it is the 9th most populous metropolitan area in Asia and the 5th most populous urban area in the world. The region is the center of culture, economy and government of the Philippines. Designated as a global power city, NCR exerts a significant impact on commerce, media, fashion, technology and entertainment, both locally and internationally, it is the home to all the consulates and embassies in the Philippines, thereby making it an important center for international diplomacy in the country.
Its economic power makes the region the country's premier center for commerce. The region accounts for 37.2% of the gross domestic product of the Philippines. The region was established in 1975 through Presidential Decree No. 824 in response to the needs to sustain the growing population and for the creation for the center of political power and the seat of the Government of the Philippines. The Province of Manila, the predecessor entity of the region, is one of the first eight provinces that revolted against the Spanish colonial rule in the Philippines at the end of the 19th century. Manila's role in the Revolution is honored in the Flag of the Philippines, where the sun's eight rays symbolize the eight revolutionary provinces. A historical province known as Manila encompassed territories once held by various pre-Hispanic polities; this included the well-known Pasig River delta settlements of Maynila and Tondo, but smaller settlements such as those at Tambobong, Taguig and the fortified polity of Cainta.
It became the capital of the colonial Philippines, with Manila serving as the center of colonial power. In 1898, it included the City of 23 other municipalities. Mariquina served as the capital from 1898–1899, just as when the sovereignty of the Philippines was transferred to the United States; the province was dissolved and most of it was incorporated to the newly created province of Rizal in 1901. Since the Spanish colonial period, Manila was considered as one of the original global cities; the Manila galleon was the first known commercially traveled trade route that sailed the Pacific for 250 years, bringing to Spain their cargoes of luxury goods, economic benefits, cultural exchange. During the American period, at the time of the Philippine Commonwealth, American architect and urban designer Daniel Burnham was commissioned to create the grand Plan of Manila to be approved by the Philippine Government; the creation of Manila in 1901 is composed of the places and parishes of Binondo, Intramuros, Manila, Quiapo, San Andrés Bukid, San Fernando de Dilao, San Miguel, San Nicolas, Santa Ana de Sapa, Santa Cruz, Santa Mesa and Tondo.
Meanwhile, the towns and parishes of Caloocan, Las Piñas, Pasig, Parañaque, Navotas, San Juan del Monte, San Pedro de Macati, San Felipe Neri and the Taguig-Pateros area were incorporated into the province of Rizal. Pasig serves as its provincial capital. In 1939, President Quezon established Quezon City with a goal to replace Manila as the capital city of the country. A masterplan for Quezon City was completed; the establishment of Quezon City meant the demise of the grand Burnham Plan of Manila, with funds being diverted for the establishment of the new capital. World War II further resulted in the loss most of the developments in the Burnham Plan, but more the loss of more than 100,000 lives at the Battle of Manila in 1945. On, Quezon City was declared as the national capital in 1948; the title was re-designated back to Manila in 1976 through Presidential Decree No. 940 owing to its historical significance as the uninterrupted seat of government of the Philippines since the Spanish colonial period.
Presidential Decree No. 940 states that Manila has always been to the Filipino people and in the eyes of the world, the premier city of the Philippines being the center of trade, commerce and culture. During the war, President Manuel L. Quezon created the City of Greater Manila as an emergency measure, merging the cities of Manila and Quezon City, along with the municipalities of Caloocan, Las Piñas, Pasig, Parañaque, Navotas, San Juan del Monte, San Pedro de Macati, San Felipe Neri and the Taguig-Pateros area. Jorge Vargas was appointed as its mayor. Mayors in the cities and municipalities included in the City of Greater Manila served as vice mayors in their town; this was in order to ensure Vargas, Quezon's principal lieutenant for administrative matters, would have a position of authority recognized under international military law. The City of Greater Manila was abolished by the Japanese with the formation of the Philippine Executive Commission to govern the occupied regions of the country.
The City of Greater Manila served as a model for the present-day Metro Manila and the administrative functions of the Governor of Metro Manila, established during the Marcos administration. On November 7, 1975, Metro Manila was formally established th
Alcohol proof is a measure of the content of ethanol in an alcoholic beverage. The term was used in the United Kingdom and was equal to about 1.821 times the alcohol by volume. The UK now uses the ABV standard instead of alcohol proof. In the United States, alcohol proof is defined as twice the percentage of ABV; the measurement of alcohol content and the statement of content on bottles of alcoholic beverages is regulated by law in many countries. The term proof dates back to 16th century England, when spirits were taxed at different rates depending on their alcohol content. Spirits were tested by soaking a pellet of gunpowder in them. If the gunpowder could still burn, the spirits were taxed at a higher rate; as gunpowder would not burn if soaked in rum that contained less than 57.15% ABV, rum that contained this percentage of alcohol was defined as having 100 degrees proof. The gunpowder test was replaced by a specific gravity test in 1816. From the 19th century until 1 January 1980, the UK measured alcohol content by proof spirit, defined as spirit with a gravity of 12⁄13 that of water, or 923 kg/m3, equivalent to 57.15% ABV.
The value 57.15% is close to the fraction 4⁄7 ≈ 0.5714. This led to the definition that 100° proof spirit has an ABV of 4⁄7. From this it follows that, to convert the ABV expressed as a percentage to degrees proof, it is only necessary to multiply the ABV by 7⁄4, thus pure 100% alcohol will have 100× = 175° proof, a spirit containing 40% ABV will have 40× = 70° proof. The proof system in the United States was established around 1848 and was based on percent alcohol rather than specific gravity. 50% alcohol by volume was defined as 100 proof. Note that this is different from 50% volume fraction; the latter does not take into account change in volume on mixing. To make 50% ABV from pure alcohol, one would take 50 parts of alcohol and dilute to 100 parts of solution with water, all the while mixing the solution. To make 50% alcohol by volume fraction, one would take 50 parts alcohol and 50 parts water, measured separately, mix them together; the resulting volume will not be 100 parts, but between 96 and 97 parts, since the smaller water molecules can take up some of the space between the larger alcohol molecules.
The use of proof as a measure of alcohol content is now historical. Today, liquor is sold in most locations with labels that state its alcohol content as a percentage of alcohol by volume; the European Union follows recommendations of the International Organization of Legal Metrology. OIML's International Recommendation No. 22 provides standards for measuring alcohol strength by volume and by mass. A preference for one method over the other is not stated in the document, but if alcohol strength by volume is used, it must be expressed as a percentage of total volume, the water/alcohol mixture must have a temperature of 20 °C when measurement is done; the document does not address the labeling of bottles. Since 1 January 1980, the United Kingdom has used the ABV standard to measure alcohol content, as prescribed by the European Union. In common with other EU countries, on 1 January, 1980, Britain adopted the system of measurement recommended by the International Organisation of Legal Metrology, a body with most major nations among its members.
The OIML system measures alcohol strength as a percentage of alcohol by volume at a temperature of 20 °C. It replaced the Sikes system of measuring the proof strength of spirits, used in Britain for over 160 years. Britain, which used to use the Sikes scale to display proof, now uses the European scale set down by the International Organization of Legal Metrology; this scale, for all intents and purposes the same as the Gay-Lussac scale used by much of mainland Europe, was adopted by all the countries in the European Community in 1980. Using the OIML scale or the GL scale is the same as measuring alcohol by volume except that the figures in the latter case are expressed in degrees, not percentages and measured at a temperature of 15 °C. In the United States, alcohol content is measured in terms of the percentage of alcohol by volume; the Code of Federal Regulations requires that liquor labels must state the percentage of ABV. The regulation permits, but does not require, a statement of the proof provided that it is printed close to the ABV number.
For bottled spirits over 100 mL containing no solids, actual alcohol content is allowed to vary within 0.15% of ABV stated on the label. Alcohol proof in the United States is defined as twice the percentage of alcohol by volume. 100-proof whiskey contains 50% alcohol by volume. In the United States the term "degrees proof" is not used. For example, 50% ABV would be described as "100 proof" rather than "100 degrees proof". Canada labels by percentage of alcohol by volume; the old UK proof standard was still in use as late as 1972. Alcohol by volume Cask strength Gravity Volume percent