Lyon County times. [volume] (Silver City, Nev.) 1874-1907, 1876-01-04
TO STOCK DEALER's
STOCK SPECULATION ON A
SAFE BASIS.

To the public who deal In stocks, and par.
ticularly to that class who have neither the
Willingness nor ability to take the great riskf
attending the method Of dealing heretofore In
use, the Feasibility of way to speculate on q
large scale upon the payment of small sum-
of money with 10 possibility of loss, other.
than the forfeiture Of the small amount of
money originally paid lin the event Of the
particula ar stock dealt III not rising or falling
aocording to the expectation OF the OPERATOR
and with perfect freedom from all liability
for 'more mud" the system of STOCK
HINILEGES, known MS puts" and
"CA.LS," properly and honorably conducted,
comnAends itself beyond cayil as the only
ulau of operating. We're this not SO, why
would such extensive dealings in Stock Privi-
lepes be carried On il ali the great stock cen.
tern Of the world? For years the system has
met with popular favor and patronage in
Paris London and New York, ana within the
mast wear has grown TO large proportions III
san francisco. Many fortunes have been
| realized III this way by persons beginning with
| small Investments. ii IL true that one cannot
| always Iuakt, for II tue particular stock dealt
| III should remain stationary until tint expira-
| ton OF the Privilege Contract the purchaser
would lose the payment which he originally
made but can lose no more. Heretofore there
| hive been for our public only the following
| methods OF dealing Ill stocks
Fust--A purchase upon the payment OF The
| whole amount OF money. III which case the
| nnrrbnser runs only the risk Of q depreciation
in the value OF the stock, which Is great risk
oitenttmes being fifty per cent III tihsie
week or month. .
Seeond--A purchase upon the payment OF
| mart uf the cost OF the stock tsay forty per
frutl. generally known as buying ON mar
pius"--a system fraught with great dshger
and equally ~ bad "mortgaging ones
homestead, having brought many person
to beggary. go,
Third--A sale of any stock to deliver at q
| future time, the person selling being without
the stock and anticipating decline, with the
expectation of buying 1t in at lower price
before the time of delivery expires. This 10
known Ms selling short" and requires pay.
ment down of at least forty per cent. on the
market value OF the stock and entails unlimit
ed liability On one who thus operates. Ger.
tainly no proper-mipded person can commend
it to the people.
In contrast to the above old system Of stocl
speculation, the Privilege or Put and Call
plan is far preferable. In New York heavy
stock operators, such AZ Russell Sage, ia,
Goula, Daniel Drew and others, sell Puts
and Calls" only in large parcels to any on'
purchaser, and in San Francisco there are also
wealthy operators in and out of the San Fran
cisco stock and Exchange Board who sell this
same character OF Privilege only in large par
cells. These Privileges can always be bough
in San Francisco, but only in large lots.
To utilize these Privileges obtained fron
big operators and to give the public an op
portunity to take advantage Of them in small
er way, according to the ability or desire o
each person, is within the province of Brok
err in Stock Privileges. The people are tn
; | sole arbiters OF any matter Of public interes
and never fail to appreciate what is good AM
reject the contrary for they act from prin
9 ciple based on results. As In politics the plat
e form Of party provides the test for sueees
' of the canse, 30 in stock speculation has tn
plan of Stock Privileges been tried In the cru
chile of public opinion and has become ther'
by more popular every day.
The explanation Of the Put and Call" syi
TEN may be given as follows;
A.'Put" Contract enables the holder Of II I
|. make profit by fall in the stock below th
price specified in the contract. This chara'
ter Of contract In signed at price below tn
market value OF the stock at the time OF iss.
ing the contract and reads AZ follows: