The purpose of this paper is to discuss briefly the implications for investors of the commoner forms of alterations in a company's capital structure, in the rights of its shareholders, or in the amount of its loan or issued capital, which may occur in practice. The object is to consider general principles only, and no attempt will be made to deal with all possible situations or with the many exceptions which may arise as a result of special rights or provisions in the articles or deeds governing the issues concerned.

Before discussing the implications of particular cases the main features of different types of stock-exchange investment and some broad considerations which govern their value to investors will be briefly reviewed.