Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1882-06-23
WHOLE NO. 1873.

bws of stocks and wants prices to 60
down SO that he may buy in to fill hfS
contracts. The bull Is the person who
has stock and wishes tie price to 90 up,
50 that he may sell to advantage. He
is 50 called from :he habit bull has Of
tossing things up with his horns"
Then the operator looks around and
finds little handbook from which ho
tionary of the brokers' language.
"'Going long means buying for .
rise. This is by far the most frequent
among beginners or non-professiOnalss
and is done after this manner: You
place $500 in the hands of your banker
or broker as margin upon 100
shares of stock, which you order him to
buy for you, and which he agrees to
'carry' until you order it sold or your
margin is about exhausted. In the
latter case. should you fail to respond
to call from your broker for more
margin he is at liberty to protect him
self, charging you with the deficit Gf
any that your margin fails to cover
In case of tight money market,
your broker is entitled to charge ON sd-
ditiOnal price for money over and above
the usual seven per cent. In such
transaction you would be called long of
stocks, or bull
"'Selling short is just the reverse Of
'going long, and is governed by the
same rule, except that the seller. not
having the stock. is obliged to borrow it
for present delivery. and takes the risk
of buying it back at some future time to
return to the lender. The chief risk in
selling short is the chance of . cor
ner,' for not unfrequently clique
gets control of the stock and not only
makes it impossible for the parties
short to borrow the stock. but forces
the price up to extraordinary figures.
One of the special advantages of specu-
lating on the short side is that you
have no interest to pay, and costs you
nothing except commissions to remain
short as long as you choose. unless, a
just stated, when stocks become scarce
through a corner OF for election pur-
poses, your broker has then to pay for
the use of the stock and charges you &C.
cordingly. Margins and commissions
are the same as when you buy stocks
for rise or go long When you are
ohoAc Va OWNS You ot0 SoAAOA -
| bear
"'Turning stocks consists in buying
for cash and selling at the same time on
long option the same stock and
amount thereby making six per cent.
interest, and the difference in the price
of cash and the option, which is usually
upon those of sixty days. not less than
one. and very often reaching three per.
| cent.
"Stock privileges, or puts 'calls.'
spreads and 'straddles.' although not
recognized by the Stock Exchange, have
become quite favorite mode Of specu-
iaIlng OF laJe years. A put is con-
tract which entities the holder to put or
deliver stockto the signer thereof with
in the time and at the time named
therein. A call entities the holder
to call for or demand stock from the
signer, according to the specified terms.
A spread is double privilege. and
entities the holder either to deliver to or
demand from the signer thereof the
stocks named in it, according to the
terms of the agreement. If the prices
named in both cases are the same. thon
it is known as straddle. '"-Philadet-
phiG EressinQ Bulletin.