consols

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Perpetual Bond

A bond in which the issuer does not repay the principal. Rather, a perpetual bond pays the bondholder a fixed coupon as long as he/she holds it. Prices for perpetual bonds vary widely according to long-term interest rates. When interest rates rise, perpetual bonds fall and vice versa. Perpetual bonds are most common in the United Kingdom, where they were used originally to pay for the military.

consols

abbrev. of consolidated stock; government BONDS that have an indefinite life rather than a specific maturity date. People acquire consols in order to buy a future nominal annual income without any expectation of repayment of the issue, though they can be bought and sold on the STOCK EXCHANGE. Because they are never redeemed by the government, the market value of consols can vary greatly in order to bring their EFFECTIVE INTEREST RATE in line with their NOMINAL INTEREST RATE. For example, £100 of consols with a nominal rate of interest of 5% would yield a return of £5 per year. If current market interest rates were 10%, then the market price of the consols would need to fall to £50 so that a buyer would earn an effective return on them of £5/£50 = 10%.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005

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The 4pc Consolidated Stock currently trades at around pounds 80 for every pounds 100 of face value, so your certificate for pounds 422 should fetch about pounds 337 less broker's fees.

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Not so the NYSE, wbich permitted the old "curb" market to deal in lesser securities, while the over-the-counter market was even larger Moreover, the Consolidated Stock Exchange, a renegade exchange that dealt in NYSE-listed shares and proved a clever innovator, lasted until the late 1920s.

The London and New York Stock Exchanges, 1850-1914

And on June 10, 1914, Mr Field handed over the cottages, a trust deed, land and PS350 in consolidated stocks, to The Skelmanthorpe Cottage Homes charity.

A LANDMARK TIME FOR VILLAGE COTTAGES; 100th anniversary for historic homes built for 'aged poor'