Pan-American Motors Corporation - Automotive Stock CertificateInv# AS1279 Stock
Specimen Stock printed by Columbian Bank Note Co. Chicago. Decatur, Illinois. The Pan-American Motors Corporation was formed in January, 1917, in Chicago. as he Chicago Light Six. The name was changed to Pan-American a short time later with a promise that the model would be named the Decauter. It never happened. There was a replacement of management in July, 1918, by stockholders and Edward Danner became president. Two hundred cars had been built by then with three cars a day. Commercial vehicles were built in 1917, but they were dropped in 1919. There were continuous internal problems and in 1921, Danner announced that the auditor had found a $40,000 shortage. The treasurer, Edward Phares had left a few weeks earlier. He was found and arrested, tried and found guilty, and was sent to prison. The board of directors voted to liquidate the company while it was still solvent by phasing out the company in 1922. In July of that year, the assests were sold at auction.
A stock certificate is issued by businesses, usually companies. A stock is part of the permanent finance of a business. Normally, they are never repaid, and the investor can recover his/her money only by selling to another investor. Most stocks, or also called shares, earn dividends, at the business's discretion, depending on how well it has traded. A stockholder or shareholder is a part-owner of the business that issued the stock certificates.