The Portland daily press., 1873-09-30
TERMS $500 PER ANNUM ADVANCE
Stock Brokers' Vocabular

al tnls' season, when our financial column
is examined with additional a ateption. The
following explanation of the terms nsed bv
stock brokers and others engaged in financial
transactions may be found interesting Reg
ular operators are usually divided into two
classes-"bulls and bears The object of
the bull is to toss up or advance prices, and
that OF the bear to depress the same: but
very often, when the bear finds the bulls
have got the market rising, with respect
of further advances, he suddenly deserts his
friends and goes over to the bulls, until he
thinks the market is on the turn, when he
rushes back to the bears again, and growls
as vigorously as ever. Bells perform the
same feats among the bears, so that bulls
and bears change places as the hope OF max
ing money on the one side OF the other pre-
walls. The bears. however, have the special
feature of thriving on troubles; anything
that unsettles values puts money in Ii .ir
pockets, and hence their constant schemes to
produce money panics, lower prices. create
dstrust, for then timid people are anxious to
sell at low figures. and the bear has his profit,
being sure that when the panic is over the
articles will rise in value. Connected with
these classes are the terms ''long and Short"
usually in stocks or gold. The bulls being
always long of stock md the bears short, for
the speculator who holds stock, expecting to
sell for profit, is, of course, ''loug,' w1ile
the bear keeps no stock on hand. His busi-
ness is to sell "short," or to sell property,
| which he intends to buy and deliver when
| prices are lower than hi contract specifies.
| Usually delivery is required promptly, but
often the bear borrows stocks on loan, paying
| so much day for the use of it, while mean
| while the bears who are in this condition of
borrowing at high rates, are busy in every
| possible way by means OF rumors, false re-
| ports, or even lawsuits, in depressing the
| prices of the stocks they are 'sbort" on until
they can buy at reduced rates. This 'ham-
merng" is very exciting business, as ''ham-
| mers" are quite as busy il sustaining the
| prices, in order to ''squ seze'' the bears,
which is 81 metimes most effectually and dis
astrously performed by the grand operation of
| getting up corner" This IS managed by
a union of bull /, who, ascertaining from the
brokers and by other means that there is
a lsrge "short INTEREST," proceed to form
''clque," and purchase or obtain the control
OF the stocks OH which the bears are
short, in order TO control the market aid ex-
act such prices as they please. AS soon as
the control is assured, an upward movement
| is suddenly begun when the bears, fearing
| further advances, are forced to buy; and then
the very men who hold the sttcss tuIn out to
De those TO wlom the bears sold "short," and
now sell back to them at heavy profit for
delivery! Cornering demands great general
| ship; but when successful is enormously prof
table, and often is arranged beforehand to-
trap the bears. A fancy stock, or one of lit
| tie or no intrinsic value, is selected by means
| OF brokers the stock is picked up gradually by
| the ''clique' until the control is secured; then
bids for the stock are made, and the bears go
heavily short, believing there is plenty of it to
be bought for delivery, but when the day of
the delivery arrives the only stock to be had
| is in HI of tha xuh ad
to ''twist" the bears until they ''squeap' dol
orou,lv, and are forced either to fail, and be-
come ".ame due is' or else "cover at ruin
Gus prices. Tne:e are many instances in
New York and in Europe where 81 100000
has been made in day by single operator
| in a successful corner
A put is where a person proposes to
''put' THAT is to deliver) 10 another an
amount of any certain article within certain
time at price agreed u on when the con-
trac is made and gives a ''bonus' for the
privilege. If the article does not fall in value
to an amount exceeding the "bonus' paid,
The party who plid the bonus cannot
make anything by The transaction, but is not
obliged to deliver the article. A "call'' diff
fers from ''put'' in this. A gives b a sum
| agreed upon for the right to ''call' from b
within a certain time fixed amount of stocks
If the stock advances A calls for it, and makes
| profit, il it does net, he need not ''call," but
the sum pad b is forfeited. A margin is
effected by deposting fixed amount as Sc
curiIy against del recitation in prices. A man
buys 100 bales OF cotton at so much per
pound, believing it will increase in value IN
sixty days; the seller will hold it for him ii an
agreed sufficient margin is put up. When
the sixty days arrive the cotton is sold; If 1t
brings more than when he bought, the specu-
iator pays for it out of the proceeds, gets
back his margin and makes his profit; but 4
cotton has fallen the margin makes good the
| difference.