Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-11-20
CHAPTER XXI.
Vocabulary Of the Speculative Com
munity.


1.-THE language OF "the Street" hd
perp definite underlying causes OF eT'
Sstencc. 1t is unintelhoible to mani
but il carries lust as little or as nucI
meaning as the operations it describes
require. And like many unfamiliar ton
CUES ii often battles the neophyte'
poDer of dettnition.)
At 9:55 am. five minutes before the
opening of the Stock Exchange, poo
manager is on the telephone in CONVEX
satiOn with his broker on the floor.
'HowS the book?"
Five thousand five hundred buy, 3,OOO
sell. Ten to twelve thousand scale down,
most of it S to 10 points under; 1000
to 5000 stops within 5 points. Only a
few hundred scale up. No bear stops
The crowd is. pretty lively"
General layout good?'
"About the same all around"
"All right. Give them the 2,500-l
up. Bid up and sell if buying come In:
If not, drop and pull the stops 3 down. y
The language is all Greek" even 10
many active traders in the stock market.
Let us translate:
"How's the book?" BY the book is
meant the specialists book. The spe-
cialist is a broker who "specializes" In
the stock in which the pool manager is
interested. Under the rules OF the ex-
change all specialists are required to be
at the post where their stocks are traded
not later than $50 am. The specialist
keeps a record, called the book" which
anv broker may ask to see. The book
shows the orders filed overnight to buy
and sell the stock "at the market price;
also the book shows the stop loss orders
on file, and all other orders to buy and
sell the stock in the event the price adj
lwaAlN
these orders with the specialist, who Is
always at the post where the stock is
traded and who executes these orders
the instant the price touches the figure
at which any order becomes valid.
Specialist Asks Bids at Opening.
give thousand five hundred buy.
three thousand SELF Orders to buy
$500 shares are on file this morning,
and orders to sell 5000 shares at the
market" The market price at which
these orders will be executed is de-
termined after the opening, when the
specialist Immediately offers to buy
$500 shares and to sell 5000 shares.
He receives bids and offers for various
amounts of stock at various prices, BY
negotiations among the brokers price
for the first sale will be reached, and
trading has begun for the day.
Ten to twelve thousand scale down.
most of it to 10 points under" This
means that on the morning we are re-
porting the specialist has buying OIL
ders on file for 10000 to 10000 shares
of the stock, most of them at prices
5 to 10 points under the last sale OF
the previous day. These are called
"scale down buying orders"
-Four thousand to five thousand
stops within points" Stop-loss Oh
a. ealI cfonkc II thew
decline to certain prices, in order to
prevent further losses to the holders.
This morning orders to sell 1000 to
5000 shares are on file at prices. within
points of the previous days closing
sale.
"only q few hundred scale up"
Orders to sell as prices rise to certain
prices are called scale up selling or
ders." Only few hundred shares have
been ordered to be sold scale up" OIL
this morning.
mo bear stops" Orders by bears to
buy in stocks If prices rise to certain
figures, thus preventing further losses.
THE crowd is pretty lively BY this
is meant that the group of brokers
in the book, and probably have orders
to be executed after the opening.
Then comes the question from the
pool manager: General layout good?"
He wants to know about the situation
in other stocks; does it look like good
buying is coming into the market gen.
orally? The broker replies: About
the same all around" The situation,
as shown by the specialists books and
the interest of the brokers. is about
the same for all active stocks on this
particular morning.
Pool Orders Given on Floor.
cali right. Give them the 2,5O0-1 up.
Bid up and sell if buying comes in. If
got, drop and pull the stops down."
The pool manager is confident He
believes that his buying power is SUM-
cient to make the prices at which the
stock will be traded. Give them the
2,500-1 up" The book shows orders to
buy $500 shares and orders to sell 1000
shares; the difference of $500 shares
shows the net demand for the stock.
The broker is instructed to make bids
and offers in way to fill the orders for
this $500 shares at a price point above
the last sale of the day before.
Bid up and sell If buying comes in"
After the opening transactions are re-
corded the broker is to bid up the price
of the stock, provided substantial buying
appears in the market, the extent to
which he will raise the bid being left to
his discretion. Thereafter he is to stop
OuyAiS anu dSScPG OLA pAuS dDoEC CAuS
price.
eff not, drop and pull the stops
down." If good buying does not appear
after the opening, the broker is to lower
the offering price and thus pull the
stop loss orders on file 30 sell at prices
within points under the opening price.
The object of the maneuver will be to
take up the stock of holders who are
ready to sell on small concessions, in or
der to avoid the risk Of larger losses.
Buyers are waiting at lowest prices, as
shown by the scale down buying orders
This strengthens the technical posi-
ton" and prepares the way for later
advance, the reasoning being that if
stockholders are afraid to carry the
stock on reaction they will be likely to
grab" profits on an advance, thus de-
laying the pool in its efforts to put the
stock up q should add that the book
on the morning we report divulged
situation Instantaneous for the traders
who had filed stop loss orders. This Is
OF course not often true.)
The pool managers orders, as given,
cover only the first few minutes of trad
ing. BY 1915 the broker, or his phone
boy, will again be in touch with the pool
operator to arrange for later action.
Brevity Characterizes Vocabulary.
The first necessity of the Wall Street
vocabulary is breVity. There is no
time to use unnecessary words, or even
unnecessary syllables. For this reason,
the picturesque and colorful language
used by newspapers in reporting stock
market affairs, and by brokers in their
market adviceS to customers is little
heard among the professionals" not at
any rate during the hours the market is
open. In truth, the most outstanding
feature of conversation among the
speculative community is the fact that
there is so little of it.