Idaho semi-weekly world. [volume] (Idaho City, Idaho Territory) 1875-1908, 1889-02-08
-. GREET PHRASES.
,,be Exchange Explained BY .
A. slans Victim.

Exchange Explained BY .
). slang % Victim. -.
,,.,sr buy stocks on 'margin'P"
Dpla - = Young Napoleon OF finance
spsaiea 49, ..Well, / should smile;
pa repo. ,he language of the street.
but TO u ''ola out and quit. No more
haVe ior me, no more stocks. | am
paF y, tired cd Of being in the Wall street e
|saa u and am glad to be out OF it.
sln' 'I ! don't mind telling you a lit
D . M, about the slang. Let's
sO.u a leading money-making Cor
pkins sing)stock Union Pacific.
ur instance, you believe Union racine
Of i' asvapce and you call on your
~, !, az and buy hundred shares, ex-
ro s.ar to- to sell them when the price is
e gu eoipts higher. If the price is
few !, p will cost you just Sc, 900 to bug
,.ock outright, and there are but
y ' ALLOWS, unless their papas are
W sred, that can do that, OF course,
s ~ it is bought for Investment.
a l's hroker, however, only asks you
su = deposit of 10 per cent. OF the
|noaut, that is if you are new hand;
h,V uheu YOU are an odd timer you
s Sn t done for good deal less.
N that's 5000, anyhow. This de-
w. NAV be in cash, but you will ar
~. n nut up securities. railroad or
ssr lind. the market value of which
", .sol at least. As the broker holds
stock purchased, his security is
s,snt The stock is then said to
.margined' up to $50. If the stock
avapces say to 65, you can sell out
\ nocket 5000 in cash, less your
star's commission. IN this opera
~ he is .long of the market and
,.eognized as bull on the stocks.
orthe other hand. the stock fails to
svsnee. the broker holds it until the
u in price is nearly equa. tc the
srgin deposited, when you are noti-
\ to nut up more margin. The same
.,s Of affairs is likely to occur if the
r,rsir' itself has shrunk in market
,lue II the brokers' demands are
\ the stock is held until the price
,,ancss or until the margin is again
rbsusted. If you fail to come to
he and put up more margin. the
toker sells your stock at so, and, OF
burse, pockets the margin, by which
ocedure, in the language of the
set. YOU are wiped out just as
No as you keep the stocks good will
broker carry the stock for you,
no longer. Selling stock short
the reverse of going long, Say,
rinstance, you believe certain stock
going to decline in price. You sell
shares of Union Pacific at 60
rough your broker, if you sell your
IN stock which you have bought at
lower figure, you are merely 'realiz-
<, and taking your profits. But
le for the short account do not ne
aitate the actual possession of the
Gk. The 100 shares are borrowed
the loan crowd al a certain rate of
erest. This borrowed stock is de-
Tered to the broker who bought the
shares at 60. In this case you
Jed only put up margin of about 10
i cent, or sometimes less. If the
iceof Union Pacific declines to 81,
bur broker has only to lay 100 shares
the market and return them to the
rty from whom the stock was bor-
lwed As the borrowed shares were
ID for $4,000 and $500 were paid
! the purchase, his profits are, of
Purse, $500. less the usual commits
pms and the interest on the borrowed
Gk IN. Y. Mail and ErDress.