What Is A Break?

When stock is kept up by artificial means, and attacked by the bears or other causes, it declines, it is called a break.

What Is A Bucket Shop?

A bucket shop is a place not recognized by a regular exchange, where bets are made on regular exchange quotations. No actual transactions take place. A margin is put up by the customer with the Bucket shop broker and commission is charged for buying and selling the same as on an exchange. When the quotation shows a profit to the customer he is privileged to demand the profit; when the limit of the customer's margin has been reached and the customer has lost his bet, the transaction is closed.

What Is Bucketing?

An operation carried on by a broker at his own personal account or risk against a customer's purchase, without investing any money in actual stocks.

Supposing a customer buys one hundred shares of stock at $105, the broker sells one hundred shares at the same price, the margin that the customer has put up, say ten per cent, the broker has the use of. If the stock goes down to $103 and the customer fails to sell, the broker, of course, buys and makes the difference between $105 and $103, two points besides his commission. If the stock goes up to $107, the broker, of course, loses two points less his commission. The broker on the percentage, which his commission allows him in the trade, will win at the end. Several trades can be carried in the same way.

What Is A Bulge?

A sudden or sharp, but comparatively small advance in the market.

What Is A Bull?

It is a speculator in Wall Street who believes prices of stocks will rise, and works to secure them. A bull is, therefore, anyone who buys or favors buying stocks, grain, cotton, or any other speculative commodity, expecting to sell at higher prices.

What Is A Bushel?

In the different States the number of pounds recorded on 'change in a bushel is fixed by law, generally uniform, but it varies a little.

What Is A Buyer's Option?

When securities are bought on "buyer's option" the buyer may demand delivery of the stock on any day within the time specified by giving one day's notice to the seller. If not "called," the purchaser is forced to take the stock at the end of ten days. The buyer, unless the contract is "flat," pays the seller interest at the legal rate on the price of the stock up to day of delivery.

The New York Stock Exchange rules prohibit any "buyer's" or "seller's" option to be entered into for less than four days or more than sixty days.

What Is Buying On A Scale, Up Or Down?

Buying at regular intervals. To illustrate: Buying New York Central at no, 108, 106, 104 and 102 would be buying on a 2 per cent, declining scale. Selling on a scale is the reverse.

What Is The Meaning Of Buying On Margin?

It is for a man to deposit a sum of money with a broker with an order to the broker to buy or sell for him, stocks, or grain, cotton, coffee, etc., to be held until ordered disposed of, or purchased by the man or customer. Illustration:

A goes into a broker's office and asks him to buy one hundred shares of New York Central, which is then quoted at par, $100. If A were to buy the stock outright, one hundred shares of New York Central, at $100 would cost him $10,000. But A buys one hundred shares of New York Central at $100, and deposits $500 with the broker, which is five points or five per cent, of the purchase price. The broker holds that stock for A until A orders him to sell it if the stock advances in price. If the stock goes down under $100, when it has reached $95, which is five points under par, the broker will sell A's stock unless A deposits an additional sum, which will secure the broker against loss. If the broker sells the stock at $95, A loses his $500 and commission and loses all interest in the stock. This illustration shows that buying on margin is just what the word implies, that is, the payment of a margin or part of the purchase price.

What Is Buying Outright?

Purchasing stocks and paying their full value, then taking them away, or leaving them in the broker's possession subject to orders.

What Is Buying Or Selling At The Opening?

It means to execute a trade immediately after the Exchange has opened, at the prevailing price.

What Is A By-Bidder?

It is one who bids at auction in behalf of the owner for the purpose of advancing the market price of the security or property.