Part 7

"GROSS LOSS."

The entire amount of loss suffered after adding broker's commission, war tax, etc., to the loss on the transaction.

"ROUND TURN."

This means a complete deal after having bought and sold or sold and bought, as the case may be. For instance, in stating a broker's commission you would say that it amounts to one-sixteenth for buying and the same for selling, or one-eighth for the "round turn."

"COMMISSION."

This is the remuneration which the broker receives from a customer in executing orders for the purchase or the sale of stocks or grain. This payment is based on the par value of stock or grain bought and sold, and not on prices at which the transaction was executed.

"A POINTER."

Information supposed to come from the inside and giving you an infallible tip on just what is going to happen. Sometimes information of this kind is valuable, but rumors of the wildest kind are so continuously floating around the Street that a "pointer" is more than likely to be an unfounded, silly rumor, which somehow has gotten into respectable company. If you know that the information comes from a reliable party who knows what he is talking about, and have money enough so that you can make an investment--not a speculation on narrow margin--and can afford to hold on after the methods of this company until prices rise, the "pointer" may prove a good thing.

"A POOL."

A syndicate of men who combine forces to get control of a property.

"A CORNER."

When a "pool" or an individual quietly buys up the shares of a property so that they can absolutely control it, it is called a "corner." Those who succeed in effecting a corner will not let the "bears" cover their "short," except at extraordinarily high prices.

"A SQUALL."

Depressing news that comes unexpectedly upon the market, and frightens the timid speculators into letting go their holdings.

"A SLUMP."

A continuation of depressing influences which makes the margin dealers sell out.

"A PANIC."

A time when most of the "bulls" have been wiped out and everybody is a "bear" on the market and goes "short" because it is the prevailing sentiment.

"Squalls," "slumps" and "panics" are disastrous to the ordinary speculator, and ruin them by the thousands. They represent, however, the very best opportunity for money making, as has been shown in hundreds of instances. They will give this Company the chance to buy the best sort of securities at prices so low as to make big profits a certainty. It is under these conditions that this Company will make its purchases. With patience enough and capital enough it is possible by acting promptly at the time when these bargain days occur to make more money in Wall Street than in any other place in the world.

"A RALLY."

A state of affairs which exists almost immediately after the public has unloaded its "long" stocks and put out a "short" line.

"A CALL."

A privilege to buy a certain number of shares at a given price within a certain space of time.

"A PUT."

A privilege to sell a certain number of shares at a fixed price within a given period of time.

"A SPREAD."

When an operator buys or sells both a "put" and a "call."

"ON CURB."