in general, and who unite in mutual efforts to obtain such a result. A" bull clique" in Union Pacific, for instance, is a combination formed to effect an advance in price of Union Pacific Common Stock. (See "Clique.") Bulling Prices (or the Market). Pushing prices upwards. Bullion. Uncoined gold or silver, generally in the form of bars, but sometimes in lumps or other masses. Although the uncoined metal is usually understood, yet, in discussions relating to the currency, the coined metal is signified as well. For export purposes the former is generally used. Bullion Point. This is occasionally used in the same sense as the "gold import point" or the "gold export point." Bullion Value. The commercial value of the precious metals as distinguished from the face value of coined money. If a gold five-dollar piece has been reduced in weight, by wear, so as to contain but $4.75 worth of fine gold, the latter is its "bullion value." Bull Market. (See "Bull.") When so many are "bulls," that their influence is predominant in the market, a “bull” market is said to exist. Bull Pool. See "Bull Clique." The difference between a pool" and "clique" is explained under the latter subject. Bunco. To swindle or cheat. Buoyant. Having the quality of rising. When the market is "buoyant," it is rising rapidly, with leaps and bounds; creating much enthusiasm among those benefited thereby. Burlington. Chicago, Burlington & Quincy R. R. Co. Business Man's Investment. An investment which appears meritorious and of good promise yet not conservative enough for a trustee or for one entirely dependent upon his income from investments. Business Paper. Often referred to as "business receivables," or "trade paper." Notes, acceptances, etc., taken in the course of one's business in exchange for goods delivered, for instance, and not notes given in exchange for money with which to do business. If West, a grocer, sells Clark fifty barrels of flour and accepts the latter's note for the amount, such a note is business paper." If West had borrowed $10,000 in cash from Clark, giving Clark his note therefor, and West wished this money to use in his business, such a note would be known as " paper." " Paper" given by a dry goods house, for instance, might be "business paper" or "mercantile paper," according to whether it was given by the dry goods house to a jobber for goods purchased of him, or was given in the form of a note in direct exchange for money borrowed to conduct the general business of the concern. As a matter of fact, all classes of notes, acceptances, bills of exchange, etc., irrespective of for what purpose given, are referred to as "commercial paper or, more briefly, " paper," and the minute classification given above is not always adhered to in common usage. The foregoing terms used to designate different kinds of "promises to pay " arise from usage. Business Receivables. See "Business Paper." Buy at the Market. An order to buy at the lowest price at which the security can be obtained without any price limit being set by the one giving the order. Buy at the Opening. An order to purchase immediately after the opening of the stock exchange and at the lowest price possible. Buyer's Option. A stock exchange term for a contract under the terms of which the buyer of a security need not receive delivery until the end of a specified time. He also has the right to demand delivery any time within the period covered by the contract, by giving one day's notice to the seller. The understanding is briefly expressed as " buyer 4," "buyer 10," the figures indicating the number of days provided for in the agreement. By the New York Stock Exchange rules the time must be not less than four nor more than sixty days. Buyer the Year. This is explained under "buyer's option,' except that one year is the time allowed the purchaser to call for delivery. Buyer Three (or any number). See "Buyer's Option." Buying Down. See "Averaging Down." Buying In. See "Short Covering," meaning the same, also buying in "under the rule" (to which refer) and buying to return borrowed stock. Buying on a Scale. Buying at regular intervals as the market changes. Example: A certain stock at 100, at 98, at 96, and so on at every decline of 2%, purchasing a stated amount each time. Buying Order. An order given to a broker to buy a certain security, either with or without limit as to price as the case may be. An order to buy is good for the date for which it is given only unless otherwise specified. Sometimes an order is given "good until countermanded," or "good until cancelled," by which the broker understands there is no definite limit as to time; but brokers usually remind their customers at frequent intervals regarding the orders to be sure that they wish them to still remain in force. Buying Outright. An absolute purchase for which full payment is made. Buying Up. See "Averaging Up." B. V. These letters stand for "book value." (See that subject.) C. When printed upon the "tape," either "Class C" bonds, "coupon," or "cash" (if preceded by a sale) is understood. Cable Companies - Securities of. Since the laying of the first submarine cable in the Atlantic Ocean, the world has now been girdled with them. The large expense contingent upon their laying, repairing, etc., has been considerably reduced, but the liability to breakage and the consequent cessation of business is considerable. The ocean bed is uneven, and there is necessarily a considerable wear and tear, to say nothing of the dangers of ship anchors and icebergs. The repairing of a break has been much simplified, as it is now scientifically possible to calculate with great accuracy the location of the break, and, by the aid of charts, to locate and pick up the two ends. Still, there is an element of risk about cable company investments; but, nevertheless, they seem to be regarded as an established form for the employment of money. Cables. Cablegrams giving quotations in foreign markets. These are referred to as "private cables," which distinguishes those received by private firms, or individuals, from " public cables," which are received by commercial organizations. Also used to designate securities of railways operated by cables. Cable Transfers. A method by which bankers in one country give their customers immediate use of money in another. A person in Boston wishing so to remit a sum of money to a person in London, may go to a banker dealing in " foreign exchange" and deposit the sum desired, together with an amount sufficient to cover certain charges and expenses, and the banker will cable his agent or "correspondent" in London, authorizing the payment of the sum desired to the Londoner, another cable message being sent the latter advising him where he may call to get the money. The charge made for a "cable transfer " depends upon the" rate of exchange," and a newspaper quotation: "cable transfers 4.871" means that for every "pound sterling"- English money - the Bostonian wishes to pay the Londoner, he must deposit $4.87 U. S. money, besides the expenses of cabling. Call. A demand for the payment of money; a demand for payments (generally in installments) of subscriptions to stocks or bonds; an assessment for which one is legally liable; a notice of intention to prepay a bond or warrant. A "call" is a contract which gives its possessor the right to demand, from the party signing the same, a certain amount of stock (grain or other commodity) at a named price during the time stated in the contract. (In London the privilege conveyed in a "call" can only be exercised on the last day of the time limit. In New York it may be exercised any time within its life.) The party willing to execute such a contract, in consideration of the sum received, believes that the security will not be more than this sum above the price named in the contract during its life (or at the maturity of the same), thus making it no object for the owner of the "call" to demand the security. "Calls" are dealt in much more extensively in London than in America. A " call as executed in New York may read as follows: "For value received, the bearer may call on me on one day's notice, except the last day, when notice is not required, 100 shares of the capital stock of the Arctic Electric Co. at $175 per share any time within 30 days from date." Then follows the signature, the time of expiration, and an agreement that all dividends paid upon the stock in the meantime shall accompany the stock in case of the rights of the "call" being exercised. (See also "Options.") The word "call" is also used in reference to the calling off upon produce exchange, "futures" in commodities, or, upon a stock exchange, a list of securities. Callable. This indicates the right on the part of the issuer of a security to pay it off- usually under certain conditions previous to its actual date of maturity; "subject to call;” subject to redemption." Callable at a Premium. Bonds are frequently callable at a premium, that is, the issuing corporation reserves the right to call its bonds at 105 or 107. The value of a bond called at à premium consists of the value of a bond similarly described called at par plus the present worth of the premium at which it is called, computed at the given yield rate and for the given time. When a bond is callable before maturity at par its value should be computed to the date which shows the least yield to the purchaser, that is, to the callable date if it sells at a premium, or to maturity if it sells at a discount. The same principle is involved in the case of a bond callable at a premium. Its value must be computed to the date which shows the lowest yield. If actually called, or callable at a premium and quoted at or above the call price, it must be figured to the callable date. Some Railroad bonds, and nearly all Industrial and Public Utility bonds, are callable, and usually at a premium. This privilege is inserted in the deed of trust for the protection of the borrowing corporation - not for the benefit of the investor; hence it behooves the purchaser of bonds callable at a premium to know what the yield on his investment would be if the call were availed of. It is especially important for the owner of bonds callable at a premium to observe the quotations of the bonds, particularly if the callable date is not far distant and in an easy money market which would be favorable to new financing. In the summer of 1926 Westinghouse Electric Manufacturing Co. 61% bonds due in 1931 were selling around 106 only a few weeks prior to the announcement of the call of the bonds at 104. This illustrates the importance of watching the quotation on bonds callable at a premium and quoted above the call price. Callable at a Premium. Some Public Utility bonds are callable at a premium for purposes of the sinking fund only. In such instances the call prices usually vary on a graduated scale. If the sinking fund provides for the retirement of the entire issue as it sometimes does this makes all the bonds payable at a premium. If called by lot, the only element of chance is the time the bonds may run before being called. Special Bond Values Tables are required to determine the value and yield of such bonds. Called Bonds. Bonds called for payment or redemption. In many issues of bonds the right is reserved to pay off all, or a certain portion of the issue, under conditions and at such times as may be specified in the bonds and deed of trust. Call Loan. See "Demand Loan." Call Money. See "Demand Loan." Call of More. An expression used in connection with trading on London Stock Exchange. "The premium paid for the right of calling or putting stock at some future date, at a stipulated price, is sometimes included in the price at which a transaction is done, for the same date, in firm stock. Thus, a 'giver' of option money will buy a certain amount of stock firm for delivery, e. g. two months ahead, at a figure sufficiently over the current market price for that period to carry with it the option of calling a like amount at the same price. This transaction in options is known as buying stock call of more.' Higgins. "The Put-and-Call." Calumet. Calumet & Hecla Mining Co. (Copper.) |