The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-06-18
STOCK EXCHANGE pHRAsEs.
quits" "Calls, Spreads and "cor-
ners'' Defined for the Layman.
From Harper's Weekly.

From Harper Weekly.
Many of the phrases used in Wall
street, as well as the methods of business
on the stock exchange, are enigmas to
outsiders. What are known as splivi-
leges" are not officially recognized by the
exchange. Yet these privileges" form
an important part in the daily life of some
of the members of the exchange. These
privileges" are known as puts. :"
calls" ''straddles," and spreads. :"
All are purchased by spectators as an
insurance against losses in their op-
erations in the market. A put"
is contract given to receive and
pay for stock at price below the cur
rent market price for cash considera-
ton, usually per cent. A call" is a con-
tract to deliver stock at price above the
current quotation for similar considera-
ton. A ''straddlep is a dual privilege
either to receive or deliver stock at price
usually from 2 to per cent above or be-
low the market figure, the consideration
being about per cent spread is a
privilege in two separate contracts, one a
put the other a "call,"A the con-
sideration for which is usually larger
than in the other options. say Is per cent.
There are many other terms used on
the stock exchange which may be
briefly stated and explained. A Hbreak''
in the market is serious define
caused by a stringency in the money
market or any other similarly potent fac
tor in stock speculations. The bear clique
attacks the market, and holders unable
to carry the load OF stocks sell out A
marked decline in values follows: the
market thereupon breaks down. Bal
looming is to work up a stock far beyond
its intrinsic worth by favorable stories,
fictitious sale, or other cognate means.
Block: a number of shares, saw 5000
or 10000 massed together and sold or
bought in lump. TO buy i'm is the act
of purchasing stock in order to meet a
short" contract, or to enable one to re-
turn stock which has been borrowed.
Carrying" stock is TO hold stock
with the expectation of selling
it at an advance. A "clique''
is combination of,operators controlling
vast capital in order, TO expand or brea X
down the market. Con yersions:' bonds
are frequently issued with provision
whereby they can at any moment be ex-
changed for equivalent stock such secu-
rites are called (onyertible, and the act
of substitution is styled conversion. "
Corners when the market is oversold
the shorts" are compelled to deliver,
finding themselves in corner Sol
lateralS;" any kind OF securities given in
-
cover" where the stock has been sold
short" and the market advances, the
seller buys in order to protect himself on
the day OF delivery; this is covering
ones shorts" Differences: lathe price
at which a stock is bargained for and the
rat on the day of delivery are usually not
The same; the variation is known as the
differences" ana occasionally brokers
pay over this money balance instead of
furnishing the stock but such cases are
rare. A drop in stock is equivalent
TO break - except that it may possibly
be due to wholly natural causes. Fore
ing' quotations is where brokers
wish TO keep up the price of
stock. and this is generally ac-
complished by transactions among
themselves. This is known also as
washing" To be more explicit. wash
ing is where one broker arranges with
another TO buy certain stock when he
o1ers it for sale. The bargain is fictitious
and the effect, when this fact is not de-
tected, is to Keep the stock quoted. and.
il the plotters buy and sell IL to a high
figure. TO ahord basis for actual trans
actions. Watering a stock" is the arti-
flee employed 10 double the quantity Of a
stock without improving the quality
long In stocks is where an operator
is carrying stock for a rise. To load" up
is where operators buy very heavily. 70
be short Of the market is where an op-
orator has sold stock which Is not yet
actually IN his possession. Milking the
street." the act Of cliques or great oper-