This section is from the book "The Investor's Catechism", by Marc M. Reynolds. Also available from Amazon: The Investor's Catechism.
Railroads in their reports give the number of tons and the number of passengers carried one mile, with the average rate received per ton and per passenger. The traffic density is obtained by dividing the ton mileage by the number of miles operated either in freight or passenger service.
Crossing a continent; applied to railroads having transcontinental lines.
When stock is sold it is registered in the name of the purchaser on the books of the company issuing the stock. If the same stock is again sold by the purchaser to another person, said stock must be transferred on the books of the company to enable the new purchaser to be a stockholder of record in order to receive any dividends that may be paid by the company.
This term applies to stock endorsed the same on the back as the name reads on the face of the stock certificate. If endorsed in any other form it is not legal and will not be accepted for transfer on the books of the company issuing the stock.
Formerly applied to broken-down, depreciated railroad and other stocks. Not used now.
Through railroad lines extending from the Atlantic coast to Western points, such as Chicago, St. Louis, Kansas City, etc.
An incorporated banking institution operating on a charter which gives it the power to accept and execute trusts as provided by law, also to receive deposits of money or other personal property, issuing obligations therefor. To lend money on real and personal securities, according to the law of the State in which it is incorporated. Trust companies are not permitted to issue bills to circulate as money, nor to make loans directly or indirectly to their officers.
When there is a big short interest in the market, and prices are suddenly and artificially advanced, thereby compelling the bears to settle with heavy-losses, the process is referred to as "Twisting the shorts."
Stock bought or sold at buyer's or seller's option for a number of days is usually sold at a price of 2 per cent, up from the market. The parties to a contract sometimes insert a provision for a preliminary deposit of 10 per cent., more or less, to insure the contract.
One having a prior claim or date to another one. A first mortgage underlies a second one, etc.
Used in designating the underlying strength or weakness of the markets by financial letter writers, as "The market had a strong undertone."
When a member of an exchange fails to receive or deliver stock for which he has made contracts, the chairman sells or buys the stock in question for the account of the delinquent member, who is charged with any deficit resulting therefrom. Such transactions are made under the exchanging rule providing for them, and the letters "U. R." on the ticker tape designate such transactions.
In insurance affairs, one who insures. In corporate affairs, one who subscribes for the stock of a company for the purposes of financing or reselling the securities. This process is called "underwriting."
Notes issued in payment of purchases of silver and gold, and redeemable in gold or silver at the option of the Secretary of the Treasury. The Sherman Act of 1890 made these notes legal tender except when otherwise stipulated.
Selling out a stock which has been carried for some time.
The lowest limit price at which goods or securities will be sold when offered at auction.
A draft or bill of exchange drawn against consignments of property.
Placing all or the majority of the stock of a company in a pool or trust for a certain specified time for voting purposes only. Such a trust is formed at times to carry out policies agreed upon.
Receipts of a warehouseman for goods received by him and held in store. Warehouse receipts are assignable and are frequently accepted by banks to secure loans. The transfer of the receipt completes the delivery of the property.
A term used to describe the simultaneous operation of buying and selling the same stock for the purpose of making quotations, and inducing speculation. Such sales are called Wash Sales.
An increase in or the issuing of capital stock, with no corresponding increase in assets, or when there are no real assets on which the stock is issued.
When speculators are caught buying at the top and selling at the bottom market prices, or selling at the bottom and buying at the top in a market movement, they are said to be "whipsawed."
During active business when a large crowd is trading in a single stock the opening sales frequently are at varying prices, sometimes as high as ten points difference in the selling price.
Sometimes applied to bears. As they do not possess the property which they sell, they are referred to as "selling wind."
When a speculator loses all of his margins or principal, he is "wiped out."
Grain that has been sold and worked out of the storehouse and into the hold of a vessel, is referred to as "worked for export."
Weekly shipments of grain from exporting to importing countries are called "world's shipments."
 
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