Semi-weekly south Kentuckian. [volume] (Hopkinsville, Ky.) 1883-1889, 1883-12-07
BULLS AND BEARS.


all in stocks and sells in hope Of being
aule to buy at lower piice before ths
time comes for delivery. The name Is
derived, I believe, from tho story OF .
man who sold bears skin before he
had caught or killed the bear though
some people say such man is called q
bear because he pulls down, and others
say it originated in the fact that he is
bare OF stocks and wants prices to go
down SO that he may buy in to GIL his
contracts. The bull is the person who
has stock and wishes the price to 60 up,
so he may sell to advantage. He is so
called from the habit bull has Of toss
ing things up with his horns.
Then the operator looks aroand and
finds little handbook from which he
reads definitions. 1t is q sort Of do.
tionary Of the brokers' language.
"Going long" means buying for o
rise. This is by far the most frequent
among beginners or on.professionals,
and is done after this manner: You
place $500 in the hands Of your banker
or broker rs "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
1
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
himself, charging you with the deficit
III any) that your "margin" fails TO
"cover." In case Of q eight" money
market, your broker is entitled TO charge
an additional price for money over and
above the usual Z per cent In suoh a
transaction you would be called long Of
stocks or bull" NJ
"'Selling short is just the reverse o!
| going long, and is governed by the
same rule, except that the seller. mol
having the stock, is obliged to borrow il
for present delivery, and takes the risk
Of buying it back at some future time "a
return to the lender. The chief risk in
selling short is the chance Of cor
per, for not inirequentlya clique get
control of the stock and not only makes
it impossible for the parties short te
borrow the stock, but forces the price VI
TO extraordinary figures. One Of the
special advantages Of specializing on thu
short side is that you have no interes
Soray, and costs You nothing except
commissions to remain short rs long u:
, you choose, unless, as just stated, wheI
stocks become scarce through como
, Or for election purposes, your broker ha
then 10 pay for the use OF the stock ant
charges You accordingly. Margins an,
! commissions are the same as when 20,
BUY stocks for a rise or go long. Whei
you are 'short Of stocks you are GALES
| 10 bear. ;.
I" Turning stocks consists in buyinl
for cash and selling at the same time, n
, long option tho same stock an,
, amount, thereby making per cent. in
! terest, and the difference in the price G
: cash and the option, which is usual
] upon those Of sixty days, NOT less thai
one, and very often reaching s per ceni
, +" Stock privileges, or puts, calls
spreads and straddles,' although nc
recognized by the Stock Exchange, hav
s become quite fovorite mode Of specu
a lating Of late years. A put Isl cor
Z tract which entities the holder to put c
0 deliver stock to the siguer thereof with
1 the time and OF the price named therein
3 A call entities the holder to call for {
/ demand stock from the signer, ascordin
10 the specified terms. a spread u
y double privilege, and entities the holds
: either to deliver TO or demand from III
5 signer thereof the stocks named in i
{ according to the terms Of the agreemen
] II the prices named in both cases are I'll
|. same, then it is known as 'straddel.