What Are Private Wire Houses?

Commission brokerage houses, having headquarters in New York and Chicago, which connect with offices in other cities by leased private telegraph wires. Such brokers engage their own operators and supply the correspondence to execute orders with facility and accuracy.

What Is Meant By The Term Privilege?

It is a term used on the Stock Exchange or curb to designate a call, spread or straddle. Privileges are legal and are frequently bought to protect the speculator against loss. They can be enforced as contracts, though they are not officially recognized by the New York Stock Exchange rules.

What Are Professionals?

They are room-traders, scalpers and others who speculate for their own account.

What Are Promoters?

Those who assist in starting or promoting a financial, industrial or commercial enterprise by enlisting capital.

What Are Promoters' Shares?

They are shares issued by corporations and paid to the promoter in payment for services rendered in organizing or promoting a company.

What Is Pro-Rate?

To allot or divide in proportion; as to "pro-rate" dividends or assessments; to make an agreement or arrangement on the basis of a given rate proportionately.

What Is A Proxy?

It is giving to another the power to represent you. The ordinary use of the word is applied to stockholders' meetings when some stockholders cannot attend in person; they assign their right to vote to some other stockholder who is said to hold the proxy of the absent stockholders.

What Is Pulling The Strings?

To unload stocks, then circulate reliable and unreliable bad news in order to bring about a decline, thereby shaking out traders on a margin.

What Is A Put?

It is an agreement in writing or may be verbal, binding one broker to receive from another a certain stock named within a stated period at a stated price, if the holder of the stock shall so demand. Illustration: Brown agrees to take from Smith 100 shares of Reading at $100 or par per share, any time within 30 days if Smith demands. If Reading goes down below 99 so Smith can make a profit by buying, he does so and forces Brown to take it from him at $100. If the stock does not go below 99 or advances within the 30 days, Brown makes $100. One day's notice must always be given when stock is to be delivered, except on the last day of the agreement.

What Is Pyramiding?

A speculator buys one hundred shares of stock at the market price, and puts up a 10% margin. The stock advances 5 points, and he buys fifty shares more with his five point profit. If it advances still further he buys more stock. In other words he uses all his profits to purchase more stock as the market goes up. The same rule, only with reversed conditions, is applied in selling stock short on a margin. Pyramiding is looked upon as very dangerous in speculation.