The Democratic press. [volume] (Ravenna, O. [Ohio]) 1868-1901, 1873-10-30
WHOLE No. 27o.
THE "BULLs'' AND "BEARs.p

Vocabulary of the Stock Brokers.s5
/ At this season, the following expla-
nation of the terms used by stock
brokers and others engaged in finan-
cial transactions may be found inter-
esting, Regular operators are usually
divided into two casses-YsBuHs and
Bears. The object of the bull is, to
toss up Oh. advance prices, and that OF
the bear to depress the same but very
often, when 3 bear finds that the bulls
have got the market rising with pros
pect 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. lyigor-
ously as ever.-Bulls perform the same
feats among the bears, so that bulls
and bears change places as the hope
of making money on one side or the
other prevails. The bears, however,
have the special feature of thriving5on
troubles; anything that unsettles val
ues puts money in their pockets, and
hence their constant schemes to pro-
dHce money panics lower prices,
create distrust, for then timid people
are anxious to sell at low figures, and
the qbearf has his profits, being sure
that when the paniciis ovor the arti-
Cles will rise inavalne. -sg ,ssf 3gassl
Connected Mhith these classes are
the, terms tlong and ishott,Y usual in
stocks or gold. The bulls being al
ways long of stock and the bears
short for the speculator who holds
stocks, expecting to sell, for 81 profit,
is of course Hlong," while the bear
keeps no stock on hand. His business
is to sell sssliort, For to- sell property
Whiohah he intends to buviaHd deliver
when prices are lower than his con-
tract speeifies.ToU Usually 8 delivery is
required promptly, but often the bear
sbofrows3 stocks on loan, paying so
much q day forsthe use of il, while
meanwhile the bears who are in this
condition of borrowing athigh rates,
are busy in every possible way, by.
means of runners. false reports or even
lawsuits, in depressing the the prices
of the stocks they are short" on until
they, can buy at reduced rates. This
HhammeringY is very exciting bust
ness as,the "hammerers" are quite as
busy sustaining the prices, in. order. to
ffsqueeze" the bears, which is some-
times most effectuaHy and disastrous
ly performed by the grand operation
of getting up q s'sceraer." This is
managed by union of bulls, who as
certain from the brokers and by other
means that there. is a large .s'short in
terest," proceed to form t'clique," !"
and purchase or obtain the control of
the stocks on which the bears are
short, in order. to control the market
and exact such prices as they please.
AS soon as the control isassured, an
upward movement is suddenly begun.
when the bears, fearing further .ad-
vances, are forced to buy and then
the very men who hold the stock turn
out to be those to whom the bears
sold ssshort," and now sell it back TO
them at 8 heavy profit for delivery !!
Cornering demands great generalship;
but when successful is. enormously
profitable, and often is arranged be-
lforehand to trap the bears. A fancy
stock. or one of little or no intrinsic
value, is selected !; by means of brok-
ers the stock is picked up gradually
by the s'clique" until the control is se-
cured 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 delivery arrived the only stock to
be had is in the hands ofthe "clique," !"
who proceed to "twist. the bears un-
til they 'squear dolorous, and are
forced either to fail and become 'slame
ducks" or else ''cover" at ruinous
prices. There are many instances in
New York and in Europe where a
million of dollars have been made in
a day by q. single operator in sue
cesessful corner" 5=.
A aPut" is where q person proposes
to "put" Chat IS to deliver) to another
an amount of any certain article with
in certain time at a price agreed up-
on when the contract is made, and
gives "bonusn for the privilege. If
the article does not fall in value to an
amount exceeding the ,sbonus" paid,
the party who paid the "bonus" can-
not make anything by the transaction,
but is not obliged to deliver the arti-
Gle. A tfcall" differs from q 'sput" in
this: A gives B., within certain time,
a fixed amount of stocks. If the stock
advances a calls for it, and makes
profit; if it does not he; need not ''call, >
but the sum paid B is forfeited.
A margin" is effected by depositing
fixed amount of security against de-
probation in price. A man buys one
hundred bales of cotton at so much
per pound, believing it will increase
in value in sixty days; the seller win
hold it for him if an agreed sufficient
margin is put up. When the sixty
days arrive the cotton is sold if it
brings more than when he bought, the
spec1lator pays for it out of the pro-
ceeds, gets back his margin and makes
his profit, but If cotton has fallen the
margin makes good the difference.