Those who buy stocks judiciously, selecting choice securities whose
value is well known, buying when values are depressed, and selling when
sufficient advance occurs to give them a good profit. This they repeat
over and over again, and make money while the speculator on margin
loses. It is to this class that we appeal.
"A BULL."
A speculator who buys expecting to sell at a higher price. He is called
"long" on the market, meaning that he is buying with the expectation
that the market will go up and that he will sell out at a profit. His
belief not only is that prices are going higher, but he uses all his
influence in every possible effort to make them go higher.
"A BEAR."
A speculator who sells in the expectation of a decline. He is called
"short" of the market. He is selling what he has not got. He does this
in the expectation that prices are going down, and that he will be able
to buy the stocks at a lower price than that he has to pay for them,
and by delivering them at the price at which he sold to make his
profit. He puts up his margin and takes his risk. As an illustration of
what a "bear" is and does, suppose you believed that in a week's time
corn would go down in price; therefore, you sell and promise to deliver
so many bushels of corn at a certain price. If corn does go down, and
you can buy it at a lower price than that at which you sold, you are a
winner. If it disappoints you, and it goes up, you have to deliver it
anyway, and are out of pocket.
"A LAMB."
A man who thinks he knows all about the Wall Street game, and bases
this belief on the fact that he keeps abreast with the times, reads all
the financial columns in the newspapers, wades through all the Wall
Street papers and watches the ticker faithfully and conscientiously.
When he is sure he knows all about it he goes jauntily down into the
Street, and soon discovers that he knows nothing about it at all. He
finds this out just at the moment when all his money is gone.
"A FLYER."
A flyer is a more or less reckless gamble, which pretty nearly
everybody feels strongly inclined to make once in a while. When a flyer
turns out right it is a very profitable thing, but the trouble with it
is that it rarely turns out right or anywhere near it.
"A BREAK."
A rapid decline in prices of stock.
"A BULGE."
A quick upward movement in prices of stock.
"FLAT."
Stock loaned by one broker to another without interest is loaned
"flat."
"A HEDGER."
One who buys a quantity of stock, and then for fear he has made a
mistake, sells the same quantity in order to "hedge" against the loss
that he fears is to come. A "hedger" usually makes nothing, because the
profit on his purchase is offset by his sale, or vice versa.
"LIQUIDATION."