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144 THE FASCINATION OF NUMBERS

however, is the fact that dividends are declared on the
nominal value of the shares.

Thus, if the nominal value of the share is £1 and a divi-
dend of 50 per cent. is declared, then the dividend in respect
of that share is ten shillings. The unfortunate investor will
probably find, however, that he cannot buy any of the neces-
sary shares at their nominal value. In fact he may have to
pay L5 for a share. If he does so, he will still receive only the
dividend of ten shillings, a return of 10 per cent. on his actual
outlay. This is a very different proposition, and yet limited
fortunes may still be made on the Stock Exchange!