13 NOTES TO FINANCIAL STATEMENTS
General American Investors
1. Significant Accounting Policies
General American Investors Company, Inc. (the "Company"), established in 1927, is registered under the
Investment Company Act of 1940 as a closed-end, diversified management investment company. It is internally
managed by its officers under the direction of the Board of Directors.
The preparation of financial statements in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the amounts reported in the financial statements and
accompanying notes. Actual results could differ from those estimates.
a. Security Valuation Securities traded on securities exchanges or on the NASDAQ National Market System are
valued at the last reported sales price on the last business day of the period. Listed and NASDAQ securities for
which no sales are reported on that day and other securities traded in the over-the-counter market are valued at
the last bid price (asked price for open short positions) on the valuation date. Corporate discount notes are
valued at amortized cost, which approximates market value. Special holdings are valued at fair value in the
opinion of the Directors. In determining fair value, in the case of restricted shares, consideration is given to cost,
operating and other financial data and, where applicable, subsequent private offerings or market price of the
issuer unrestricted shares (to which a 30 percent discount is applied); for limited partnership interests, fair value is
based upon an evaluation of the partnership's net assets.
b. SHORT SALES The Company may make short sales of securities for either speculative or hedging purposes.
When the Company makes a short sale, it borrows the securities sold short from a broker; in addition, the
Company places cash with that broker and securities in a segregated account with the custodian, both as
collateral for the short position. The Company may be required to pay a fee t