"MANIPULATION."
Forcing stocks too high or too low by misrepresentations, rumors and
false sentiments.
"OPTION."
A contract that one person will deliver to another a certain thing at a
fixed price within a certain time.
"POINT."
One dollar or one per cent. a share on stock is one "point." Stock
advances and recedes by "points," and is always so quoted.
"PRIVILEGES."
"Puts," "calls" and "option" come under the general head of
"privileges."
"PROMOTER."
A broker who secures the capital to finance corporations.
"REALIZING."
Closing out stocks or contracts of any kind to secure profits.
"SOFT SPOT."
A general but slight weakness shown in prices.
"AN OVERSOLD MARKET."
This means a market in which the traders have sold "short" to an extent
which conditions do not warrant. They thereby place themselves at the
mercy of the "manipulators," who stand ready to squeeze the "shorts"
when the proper moment arrives. "AN OVERBULL MARKET" means the reverse
of this situation.
"RAIDING THE MARKET."
Concerted action of sellers of all descriptions, who discover some
cause for loss of confidence in the maintenance of prices and sell
right and left every stock for which they can find a buyer.
"A DULL MARKET."
This describes a market where there are few transactions and small
fluctuations.
"A HEAVY MARKET."
One in which prices barely hold their own, and are inclined to sag off
a little during the day, closing lower than they opened.
"NET GAIN."
The actual amount of profit after taking broker's commission, war tax,
or revenue stamps.
"GROSS LOSS."
The entire amount of loss suffered after adding broker's commission,
war tax, etc., to the loss on the transaction.
"ROUND TURN."
This means a complete deal after having bought and sold or sold and
bought, as the case may be. For instance, in stating a broker's
commission you would say that it amounts to one-sixteenth for buying
and the same for selling, or one-eighth for the "round turn."
"COMMISSION."
This is the remuneration which the broker receives from a customer in
executing orders for the purchase or the sale of stocks or grain. This
payment is based on the par value of stock or grain bought and sold,
and not on prices at which the transaction was executed.
"A POINTER."
Information supposed to come from the inside and giving you an
infallible tip on just what is going to happen. Sometimes information
of this kind is valuable, but rumors of the wildest kind are so
continuously floating around the Street that a "pointer" is more than
likely to be an unfounded, silly rumor, which somehow has gotten into
respectable company. If you know that the information comes from a
reliable party who knows what he is talking about, and have money
enough so that you can make an investment--not a speculation on narrow
margin--and can afford to hold on after the methods of this company
until prices rise, the "pointer" may prove a good thing.
"A POOL."
A syndicate of men who combine forces to get control of a property.
"A CORNER."
When a "pool" or an individual quietly buys up the shares of a property
so that they can absolutely control it, it is called a "corner." Those
who succeed in effecting a corner will not let the "bears" cover their
"short," except at extraordinarily high prices.
"A SQUALL."
Depressing news that comes unexpectedly upon the market, and frightens
the timid speculators into letting go their holdings.
"A SLUMP."
A continuation of depressing influences which makes the margin dealers
sell out.
"A PANIC."
A time when most of the "bulls" have been wiped out and everybody is a
"bear" on the market and goes "short" because it is the prevailing
sentiment.
"Squalls," "slumps" and "panics" are disastrous to the ordinary
speculator, and ruin them by the thousands. They represent, however,
the very best opportunity for money making, as has been shown in
hundreds of instances. They will give this Company the chance to buy
the best sort of securities at prices so low as to make big profits a
certainty. It is under these conditions that this Company will make its
purchases. With patience enough and capital enough it is possible by
acting promptly at the time when these bargain days occur to make more
money in Wall Street than in any other place in the world.
"A RALLY."
A state of affairs which exists almost immediately after the public has
unloaded its "long" stocks and put out a "short" line.
"A CALL."
A privilege to buy a certain number of shares at a given price within a
certain space of time.
"A PUT."
A privilege to sell a certain number of shares at a fixed price within
a given period of time.
"A SPREAD."