EE business Reasons to invest know why people invest in certain companies. Some clients invest in their own line of business, others specialize in clothing, restaurants, utilities, banks, real estate or high-tech and more than one has chosen a stock because they like the I T IS INTERESTING to name (not recommended unless you like the name 1BM). Whatever the reason let's look at what you can expect from investing in Canadian business. With each preferred share you purchase you are buying into the fortunes of a company. Your ownership of the stock means you are entitled to a portion of the company’s assets, like buildings and equipmenht, earnings and dividends, all in proportion to the number of shares you own. The preferred shares of a company offer a stable price because Its dividends general- ly stay the same. Investors looking for steady income wisely choose this type of stock. The dividends can be quite handsome. However, when you are looking for your capital to grow, you should invest in| common stocks. As a common shareholder you quite lhiteral- ly own a= piece of the company. As the company prospers the rewards of your invest- ment will be returned to you in the form of dividends directly from the company, as well as an increase in the value of your shares on the exchange. : The value of a share of common stock can increase indefinitely as a company thrives and so can dividend payments. The price of common shares is likely to fluctuate more rapidly and frequently though, and therefore you have to be prepared to dollar sense by Helen Davenport fy sacrifice stability somewhat for the possibility of profit. This is another good reason for choosing high quality companies to invest in. Have you ‘heard all this before? Then look at the ma- jor reason why people own shares of Canadian businesses that pay dividends. Remember the Treasury Bill program. This is another unique situation offered by the government to assist investors, in the form of a dividend tax credit. Under this tax break, it is actually possible to earn $40,000 of tax free dividends a year (provided you have no other income). Even for workers like ourselves, this attractive tax break provides you with one and a half times more after-tax income in your pocket than a dollar of interest would. I love it. Those con- templating a work break should especially consider this investment strategy. For new mothers, adventurers, great Canadian novelists, those on sabbatical and retirees, it is a boon. Treasury Bill! Program. At press time, 91 day rate is 11%. The Bills can be cashed in any business day prior to maturity at 1012 %. Helen Davenport is a registered representative with Pitfield MacKay Ross Ltd. in Vancouver. DEMAND DOWN SLIGHTLY Mortgage escalations are only temporary DEMANIT) FOR mortgage funds is down shpghtly as a result of a further half point increase in mortgage during April, the latest A FE dian Mortgage Bulletin However, Bill Dima, Presi dent and Chief Operating Of ficer of AE LePage Limited, feels that the cur rent inerease in © anadian in terest rates is a reflection of the United rates according to LePage ( ana Market the situation in States and is temporary “The United States is now Into strong expansion, well beyond recovery, beginning, In fact, to worry about overheating This helps to ex plain the mild rise in interest rates which the United States has experienced 7’ Canada, on the hand, 1s other barely beyond the recovery stage, and some sec tors are still tn it, says [im ma While the (wo countries! cCCODOHMES are inextricably Earn 111 debentures 30 days-1 year (Rates subject to confirmation) VICTORIA MORIGAGE CORPORATION LTD. V/ttr thor 1 ltt A\tbovectrat Vieata 688-8311 Serving, Westen © bit da hor oer Uh yes linked, he points out that teferences tO the hyper mflation days of LOK] ate just not valid “Inflation of 4 7 per cent, high unemployment prime of $1 8 per cent ate yust not the ingredients chat could Canada to the and a tetuen See page 814 B13 - Friday, May 18, 1984 - North Shore News WHILE THERE MAY be consfruction and labor problems elsewhere, such is not the case at Lonsdale Quay as workers continue to work on the many projects under way. The Quay is quickly changing the shoreline of North Van, giving the communities a fresh and exciting appearance, especially for those looking from the other side of the water, or apprdaching by SeaBus. THE ROYAL BANK. of Canada’s ‘Irendicator’, a composite index of seven leading economic indicators, remained unchanged during the first quarter of this year This marks the third suc cessive quarter during which the index has remained essen tially Mat following avery sharp increase during the first half of 1983 The bank's cconomiusts say this as consistent with the more moderate trate of coonomic growth capenicnced WESTERN & PaciFic Bann Sao CANADA 12% One and Iwo Year lerm Deposit Certificates Interest Paid Semi- Annually WOOO hays 1% CAV BO hays Wow” Jeote rest prae! hoy thar tbe ree ‘ \. oe rere fe the bbe vee Iva. Phare ae J sorrepme tative cinta too choy bbe tra atte verewt WOT hay: 1 OO Pye. iar are 1 reogr at bev tenes le toctrecabber eget prrnal S.A x poo t feed Mh Pheritiall toe Nahe « + Naongee Trendicator steady early this year and expected through 1984 According to the ‘Tren dicator’ report, the continu ing decline ino the Toronto Stock bachange price carn ings ratio was balanced by a strong increase in the export demand indicator “This reflected the tinued rapid con rate of expan sion of the tt! So economy as NOW well as the gradually strengthening recoveries in t-urope and relatively strong growth in Japan,’’ the report notes ‘ Partial data indicate the value of the index continues at 100.7) Three of the seven component indicators ad See page B14 a new general typing service on the North Shore Alpha Word Processing Benefits of Word Processing Approx 30) %o produc hon and editing WV Tease te Documents may te stored for future recall Alterations fo letters ¢ arn toe trreacdes fry teelegoticoonive Pros sitote: oTerrcdatci zation: cof Teethers, will tae rene Jove treat Why Alpha wh’ bk ‘4 ree Le Y frbto Word Processing? free in come rte te stot thank abe ‘ Heduce Call today ehh aprrate (ibe re ce Ore Xe our typing costs 987-8302