Plain truths about stock speculation. How to avoid losses in Wall street. With a visitors' directory in and around New York

Smith Moses 1932-

Description

,HrNRLF LIBRARY Dl Till. diversity of California. GIFT OK lo. &.o^/ fiends ,cJ^-e^ . 189$. \sion 5~6~ . Class No.No.^Y PLAIH TRUTHS Vbout StoGk Speculation HOW TO AVOID LOSSES IN *?r ALL STREET. WITH VISITORS' DIRECTORY IN AND AROUND NEW YORK. *** $**?( !*o|or>H^.-o|Tt.n|ci>H|^-i|(N I k/Hco IX t-i -1 w h1^00 urt nn r^r^-o O cm en o O r-^oI rj-vo OOi-ii-icO>-iMNMOrJ-MMC -t r- O^co O K "^tmnN m^H mtow Oco rf O -*NeO|00 CC|MO O O r^o Ococo O -t cm t*- -3- moo 00 " h htnno no no C)m cooo ^ OJ I I II I I I I I I I I MlII I I J I *>o cm cm oao r-^ cmO O coO mOO t^w^o nno O cm ci to i- M on m O oh win moo co r-~ en .S __ O C c ^ r-1 - *->C 7i T., 6J. Dividends on O. R. and N. were reduced to 6 SPECULATION. 61 those on O. T. were The O. T.cent.,per passed. as a construction had itscompany accomplished mission. Now the T. stock isO. intrinsically- worth rata in the ratio of the market value ofpro its of and the North-holdings Oregon Navigation ern Pacific stocks. Mr. Villard the Presidencies of theresigned one after Eu-the other and retired toCompanies for a a demoralized man. Inrope, time, thoroughly the of his he was worthheight prosperity reputed out of which it was estimated he saved$5,000,000, half a million from the crash. Such was the origin and end of ''blindthe the famous pool." built in advance of the influx ofAlthough popu- it is rich in future Pru-lation, very possibilties.

Sujets

• Spéculation

Informations

• Publié par: les_archives_du_savoir
• Nombre de lectures: 21
• Langue: English
• Poids de l'ouvrage: 10 Mo

Extrait

o cm cm oao r-^ cmO O coO mOO t^w^o nno O cm ci to i- M on m O oh win moo co r-~ en .S __ O C c ^ r-1 - *->C 7i T., 6J. Dividends on O. R. and N. were reduced to 6 SPECULATION. 61 those on O. T. were The O. T.cent.,per passed. as a construction had itscompany accomplished mission. Now the T. stock isO. intrinsically- worth rata in the ratio of the market value ofpro its of and the North-holdings Oregon Navigation ern Pacific stocks. Mr. Villard the Presidencies of theresigned one after Eu-the other and retired toCompanies for a a demoralized man. Inrope, time, thoroughly the of his he was worthheight prosperity reputed out of which it was estimated he saved$5,000,000, half a million from the crash. Such was the origin and end of ''blindthe the famous pool." built in advance of the influx ofAlthough popu- it is rich in future Pru-lation, very possibilties." />

,HrNRLFLIBRARY
Dl Till.
diversity of California.
GIFT OK
lo. &.o^/ fiends
,cJ^-e^ . 189$.
\sion 5~6~ . Class No.No.^YPLAIH TRUTHS
Vbout StoGk Speculation
HOW TO AVOID LOSSES
IN
*?r
ALL STREET.
WITH
VISITORS' DIRECTORY
IN
AND AROUND NEW YORK.***
$**?(<>
!*<+ft
Copyright by
E. V. SMITH, Proprietor.
1887.
ALL RIGHTS RESERVED.
1PREFACE.
contains ofTHIS work told,plain truths, plainly
and of on Tothe folly dealing margins.dangers
andthe uninitiated it is a revelation ofexposure
the and which intrickery sharp practices prevail
It is a tothe marts of speculation. warning keep
of Wall and man or womanout Street
; any who,
after this will do sobook, there, withreading goes
their wide to the andeyes open traps pitfalls
which will surround them. It tells of the only
true and safe to deal in stocks andgenerally way
make To the investor it is an invaluablemoney.
UK All of which is respectfully submitted,
bonopro publico, by
The Author.INDEX.
Page
Wall StreetI. iChapter Glossary
II. The American Bourse 12
III. Bankers and BrokersTypical 23
IV. of a Bull MarketCollapse 34
V. Banker-Brokers -,Manipulating 39
Sure Points VVI. 44
VII. Present Methods 48
Northern Pacific RailroadVIII. 56
IX. Union and Central Pacific . .Railways. 64
X. Events Panic ofPreceding 1884 69
XI. A Successful Operator 76
XII. Short Sales Dangerous 85
XIII. Wall Street Vicissitudes 89
XIV. Wall 102Speculators
XV. Swindles, Remote and Recent 112
XVI. Railroad Rivalry 124
XVII. Manipulation 131
XVIII. Petroleum Exchange 141
XIX. Produce 148
XX. Cotton Exchange 156
XXI. Public Stock Exchanges 158
Lower Scale ofXXII. Gambling 179
XXIII. Business on Small 182CapitalBig
XXIV. Office Expenses 187
XXV. The Market 197
211.XXVI. The Road to Success
Possibilities FinanceXXVII. of 224Railway
228XXVIII. Exegesis
NXXIX. Rich Men of 230Europe
XXX. of Taxation 236Inequalities
XXXI. Bacchus 244King
XXXII. Wall Street Detectives 249
XXXIII. The 252Sub-Treasury
260XXXIV. Custom House
XXXV. Banks 263Clearing
Visitors' 273DirectorySTOCK SPECULATION.
CHAPTER I.
WALL STREET GLOSSARY.
is to the technical termschapter explain
THIS in stockused speculation.
Bulls are for anstocksoptimists. They buy
"and of the market."advance, go long
Bears are sell stocks for apessimists. They
"
and short of the market."decline, go
is made or lost withMoney equal facility,
whether stocks or down. It allgo up go depends
on on the side of the market.rightbeing
Bulls are not bulls neither are bears
;always
bears. are bulls at one bears
. They time,always
at as occasion seems to serve.another, Some,
while bearish for a decline to enable them to buy
are bulls on moral that italwayscheap, principle
to sell notis dowrong property they possess.
A bear must borrow stock from to today day
his deliveries of stock he but didkeep good sold,
not have. This is done for him his broker.by
""A corner or is when it is difficult orsqueeze
ssible to borrow stock to make aU2 STOCK
on their arecontracts. Hence forceddelivery they
to in the stock but did not atbuy sold, have,they
whatever the bulls choose to ask.price may
""
rates are often exacted for stockLoaning
loans when there is a short interest out-large
"and stocks are made scarce in the loanstanding,
crowd." The rate be butmay 39 cents~per day
for the loan of too in addition to theshares,
--market value of or it bethe stock wanted, may
corneredor When the bears are$12.50 per day.
and to the be from 1the ratewall, maypressed
cent, or to or for onecent,per $100 5 $500per
loan of each 100 shares of stock.day's
"" whoThe loan crowd are the brokers congre-
with stocksthemselves in the board-roomgate by
to loan.
and are combinations ofCliques pools capital-
ists formed to control the in whichspecialties they
interested. Bullare boom the market for apools
or hold values ofrise the attackssteady against
the bears. Bear to valuespools operate destroy
to scare timid holders of stock intolong liquida-
to a themtion and about decline to enablebring
to cover their shorts at a big profit.
""
Deliveries of stock must bebought regular
busi-made before a certain time on the following
In is made to theness defaultday. complaint
of the who in the stockChairman Exchange, buys
" under the and all differences torule," charges
the delinquent.SPECULATION. 3
" "
or sellerOn or 60," 3-Options Buyer 3-30
or as theor either has 6060," days,30 party 3-30
or tender the stock at thecase to call forbe,may
named.price
is when the bears have overreachedOversold
themselves and sold more stock than there is
afloat.
Overloaded is when the bulls have morebought
stock than can take and for.they pay
Investors are those who and for theirbuy pay
stocks for the dividends. aim to lowThey buy
in the of out at ahope ultimately selling big profit,
in addition to the income.
are those who forTape speculators operate
from to oncatch-penny profits day day margins.
ofare as habitues the offices as theThey regular
brokers themselves.
If a bull or more100 shares ofAveraging buys
stock and it down ten heat, say 90, goes points,
will aim to more at 80. His stock then aver-buy
him commissions. If the stock85,ages plus goes
he canto out he haseven,8514, get just provided
no interest to for All the stockpay carrying.
above will be his With the beargoes profit.85^
the case is reversed. If he sells stock short at 80,
and it he will aim to sell more at togoes up, 90,
down.average
The banker-brokerMargins usually requires
or 10 to becent., as for$1,000, per put up security
each 100 shares he for customers. With thisbuys4 STOCK
as a the banker will ioo sharesmargin basis, buy
of stock that costs to oranywhere up $10,000
""
and it for his customers. He$15,000, carry
will credit the customer with interest on the $1,000
he and debit him with interestmargin put up legal
on all the stock cost above the inand,margin,
him with whatever extra rate ofaddition, charge
interest he has to in time of strin-pay monetary
if 100 shares of stock costgency. Thus, $10,000,
the customer would be credited with interest on
and interest on until the$1,000 charged $10,000
deal was closed. In a market some brokerssteady
will forstock customers on a cent,carry 5 per
or even less. If a customermargin, gets badly
the broker will demand more"left," to bemargin
in the broker will take
; that,put up failing good
care to close out the deal in time to save his com-
missions and interest.
Commissions are or to\ per cent., $12.50 buy;
the same to the of a turn insell, cost 100making
shares $25.
and TimeCall Loans the rateAlthough legal
of interest in New York is 6 since theper cent.,
of the to callrepeal Usury Law, loans,relating by
the Act of the banks can1882, charge any higher
rate choose when is scarce. Fromthey themoney
1st of U to the first months of1884,January, P
to the1886, of callowing great plethora money,
loans were obtained from to on col-day day good
xlateral at from 1 to 2 cent,2 annum. At/ per per