San Marcos free press. [volume] (San Marcos, Tex.) 1877-1892, 1882-07-27

time comes for delivery. The name Is
derived, I believe, from the story oil d
man who sold a bears skin before ne
had caught or killed the bear; though
some people say such man is called q
bear because he pulls down, and others
saw Il originated in the fact that he Is
bare of stocks and wants prices
10 90 down so that he may bny
in 10 fill his contracts. The bull is the
person who has stock and wishes the
price to go up. SO that he may sell 70
advantage. He is so called from the
habit a bull has of tossing things mp
with his horns g,
Then the operator looks around ana
finds little handbook from which he
reads definitions. 1t is sort OF die,
tionary of the brokers' language.
"Going long means buying for n
rise. This is by far the most frequent
among beginners or non.professionals'
and is done after this manner; You
place $500 in the hands of your bank
er or broker as a margin upon loo
shares of stock, which you order him
to buy for you, and which he agrees to
carry until you order it sold or your
'marpin' 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 Or
any, that your margin fails to cover
In case of tight money market, your
broker is entitled to charge an add;
tional price for money over and above
the usual seven per cent. In such q
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 lule, 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
corner 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 hgufes.
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 as
lust stated, when stocks become scarce
through corner or for election pur-
poses, your broker has then to pay 1or
the use of the stock and charges you
accordingly. Margins and commissions
are the same as when you buy stocks
for rise or ego long When you ore
short of stocks you are called 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
by the Stick Exchange,
have become quite favorite mode OF
specializing of late years. A put is
contract which entities the holder to
put or deliver stock to the signer there
of within the time and at the time
named therein. A cali entities the
holder to call for 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, then it is known as 'straddle."
philadelphia Eue,1ing Bulletin.