Evening star. [volume] (Washington, D.C.) 1854-1972, 1857-03-31
object is to get the bear. to max. oop,,,,, :.

1 Syys ~ oears 70 make contrscts "a
be In the market, and compel them ~ n.U ~
enormous prices for cash stock p.,ti.. ~
| ting mp these corners must be conpeoted s;,s
/ the managers Of the stock cornered. n, hs.
| must have access to the stock and trsnss:,
books, to see how much stock 10 on the M ri -
and who holds il, and to ocslculate the Oh ances
Of new supplies coming in Corners are dan.
gerous affairs, and result injuriously to the
stock and the parties Immediately concerned.
As prices advance under the large purchases,
small holders sell out, and FREQ uently the sup
ply OF new stock from the country is sufficient
20 90 defeat all the plans Of the combination.
In. ns bears manage generally TO get the best
CALLs.--operatiOns Of this kind are made
gensra'iy oy those curbstone brokers who are
under the impression that higher priees vilI
soon rule IN certain stocks A speculator n
osslroos OF making q little operation and hs
oners TO give 500 for the privilege Of callins
Tor iUo shares New York Central Rsilroa8
stock st " per cent In ten or fifteen dsya-
The price nIed on the part Of the buysr "a
the stock goes down ten, twenty. or thirt, n,
cent the party huying the call can only Ioss
e3O lfft goes mp 70 9ls he gets his monsv
6ack and all above that is 90 much profit .
The business is confined almost entirely 70
the curb stone brokers. II is q species ox
SSkhhk Ou u par Win roulette
fuTs.-When speculatOr thinks the stocks
are going down, and wishes 10 make q small
operation without incurring much risk, be
gives small sum for the privilege Of deliver.
ing small amount Of stock at a certain price
For instance, II the cash price Of Erie was 5.
per cent, speculator would give say $50 70
put or deliver 100 shares at 56t per cent,
say next week, ten days or any short time.
He can only lose his $50 il the market should
go up, but if IL goes down to Sc ho gets his
money back and ell below that is SO much
profit Operations Of this kind are carried on
principally among the curb-stGne brokers, men
VINO nave strong speculative propensities and
very little capital
PowER AND CERTIFICATE - During the time
the books Of company are closed for the pay
meht of a dividend, for an election, or for any
other purpose, there can be no transfer OF
STOCK, or the issue 1t n new certificate. Most
oi the sales CT stock made during the CLOSING
OF the books, or deliverable on the opening
al contracts whether buyers or sellers op.
tion, thst mature during the same time, are
carried forward to the opening but occasion.
ally sale is made where the buyer REQUIRES
immediate delivery. In that case the old Ger.
iheate is delivered with power Of attorney
attached for the transfer or after the opening
Of the books These transactions are report
cd IN tie stock list, with the letters d. and D,
which mesns power and certificate. Sales for
SoeA. Luduc ourlDS Lue closing OF the books,
not marked p and are for the opening Of
the books and are marked opg
CuEbsrosE BROKERS This is a very large
class OF Spectators, and is com posed Of some
OF the eldest and most experienced operators
In the street Many Of them have been mem.
beIs Of the Stock Ex,hsnge, but from having
failed to fulfill their contracts during some OF
the. numerous ups and downs of the market.
have been compelled TO vacate their seats and
lost their membership The curbstone brokers
nave leased large room directly under that
occupied by the regular board, and during
the session OF the board q communication Is
Kept up between the rooms, 50 that any trans-
action Is known below assoon as made. Upon
information derived in this way the curbstone
brokers operate among themselves, and fire.
quentIy with and for the account Of outsiders.
fhis class Of speculatOrs are particularly fond
OF operating in puts and calls, and in fact re-
sort TO ail the different methods Of doing q
large business On a small capital. The con.
tracts of many of these curbstone brokers are
infinitely better than many of the regular
board, and are taken more readily by out
sIders. There are not more than fifty out Of
the two hundred members of the regular
Brokers Board who have actually any
capital, ard whose contract is considered frsts
rate 1t would be good thing for the pro-
regular board was reduced ope-half by turn
ing out abou. three quarters Of the present
members. and making up the deficiency BY
admitting the most experienced and rsspona.
BILE of the present ourbstone board.
SPREAD EAGLE This lie q term used IRE
quently among stock speculstors. A broker,
s.tisfed with small profits and no. disposed
to involve himself in large transactions sells
say 100 shares Erie railroad stock at IS, buyer
60 days, and at the same time buys the same
quantity at 50, seller 60 days. The difference
in this case in the price is one per cent which
would be so much profit without any outlay Of
capital, provided both contracts run their fall
time. Having sold buyers option 60 days
and bought sellers option co days the time is
equal, bat it will be seen that he does NOT
control the option in either case. The buyer
can call when he. rleases, which would compel
the spread eagle" operator to deliver, add
the seller msy deliver any time, which would
compel the broker to receive. If be has capi-
tai TO carry, ,sthe result would not differ from
that first anticipated, but if not, he may BE-
caught in a tight place, and suffer serio1s
losses. Ii is on the whole rather dangerous
business, but not to the same extent as buying
and selling on time f. r q rise or fall In market
value.
REGULAR WAY.-Very often in the report
Of stock sales tie letters r.. W. are attached
to certain operations. This "regular way"
means the delivery ofthe stock sold the next
day All sales for cash are for immediate de.
livery.