Part 2

Those who come into the market and purchase securities for the purpose of holding them as safe investments for their money, securing an interest or dividend income thereon.

SPECULATORS.

Those who buy and sell upon margins for quick profits. They are non-producers. They are simply gamblers, with the odds badly against them. They sometimes prosper for a while, but lose their money in the end.

INVESTMENT SPECULATORS.

Those who buy stocks judiciously, selecting choice securities whose value is well known, buying when values are depressed, and selling when sufficient advance occurs to give them a good profit. This they repeat over and over again, and make money while the speculator on margin loses. It is to this class that we appeal.

"A BULL."

A speculator who buys expecting to sell at a higher price. He is called "long" on the market, meaning that he is buying with the expectation that the market will go up and that he will sell out at a profit. His belief not only is that prices are going higher, but he uses all his influence in every possible effort to make them go higher.

"A BEAR."

A speculator who sells in the expectation of a decline. He is called "short" of the market. He is selling what he has not got. He does this in the expectation that prices are going down, and that he will be able to buy the stocks at a lower price than that he has to pay for them, and by delivering them at the price at which he sold to make his profit. He puts up his margin and takes his risk. As an illustration of what a "bear" is and does, suppose you believed that in a week's time corn would go down in price; therefore, you sell and promise to deliver so many bushels of corn at a certain price. If corn does go down, and you can buy it at a lower price than that at which you sold, you are a winner. If it disappoints you, and it goes up, you have to deliver it anyway, and are out of pocket.

"A LAMB."

A man who thinks he knows all about the Wall Street game, and bases this belief on the fact that he keeps abreast with the times, reads all the financial columns in the newspapers, wades through all the Wall Street papers and watches the ticker faithfully and conscientiously. When he is sure he knows all about it he goes jauntily down into the Street, and soon discovers that he knows nothing about it at all. He finds this out just at the moment when all his money is gone.

"A FLYER."

A flyer is a more or less reckless gamble, which pretty nearly everybody feels strongly inclined to make once in a while. When a flyer turns out right it is a very profitable thing, but the trouble with it is that it rarely turns out right or anywhere near it.

"A BREAK."

A rapid decline in prices of stock.

"A BULGE."

A quick upward movement in prices of stock.

"FLAT."

Stock loaned by one broker to another without interest is loaned "flat."

"A HEDGER."

One who buys a quantity of stock, and then for fear he has made a mistake, sells the same quantity in order to "hedge" against the loss that he fears is to come. A "hedger" usually makes nothing, because the profit on his purchase is offset by his sale, or vice versa.

"LIQUIDATION."

Generally selling out of stocks previously purchased by the "bulls."

"MANIPULATION."

Forcing stocks too high or too low by misrepresentations, rumors and false sentiments.

"OPTION."

A contract that one person will deliver to another a certain thing at a fixed price within a certain time.

"POINT."

One dollar or one per cent. a share on stock is one "point." Stock advances and recedes by "points," and is always so quoted.

"PRIVILEGES."

"Puts," "calls" and "option" come under the general head of "privileges."

"PROMOTER."

A broker who secures the capital to finance corporations.

"REALIZING."

Closing out stocks or contracts of any kind to secure profits.

"SOFT SPOT."

A general but slight weakness shown in prices.

"AN OVERSOLD MARKET."

This means a market in which the traders have sold "short" to an extent which conditions do not warrant. They thereby place themselves at the mercy of the "manipulators," who stand ready to squeeze the "shorts" when the proper moment arrives. "AN OVERBULL MARKET" means the reverse of this situation.

"RAIDING THE MARKET."

Concerted action of sellers of all descriptions, who discover some cause for loss of confidence in the maintenance of prices and sell right and left every stock for which they can find a buyer.

"A DULL MARKET."

This describes a market where there are few transactions and small fluctuations.

"A HEAVY MARKET."

One in which prices barely hold their own, and are inclined to sag off a little during the day, closing lower than they opened.

"NET GAIN."

The actual amount of profit after taking broker's commission, war tax, or revenue stamps.

"GROSS LOSS."

The entire amount of loss suffered after adding broker's commission, war tax, etc., to the loss on the transaction.

"ROUND TURN."

This means a complete deal after having bought and sold or sold and bought, as the case may be. For instance, in stating a broker's commission you would say that it amounts to one-sixteenth for buying and the same for selling, or one-eighth for the "round turn."

"COMMISSION."

This is the remuneration which the broker receives from a customer in executing orders for the purchase or the sale of stocks or grain. This payment is based on the par value of stock or grain bought and sold, and not on prices at which the transaction was executed.

"A POINTER."

Information supposed to come from the inside and giving you an infallible tip on just what is going to happen. Sometimes information of this kind is valuable, but rumors of the wildest kind are so continuously floating around the Street that a "pointer" is more than likely to be an unfounded, silly rumor, which somehow has gotten into respectable company. If you know that the information comes from a reliable party who knows what he is talking about, and have money enough so that you can make an investment--not a speculation on narrow margin--and can afford to hold on after the methods of this company until prices rise, the "pointer" may prove a good thing.

"A POOL."

A syndicate of men who combine forces to get control of a property.

"A CORNER."

When a "pool" or an individual quietly buys up the shares of a property so that they can absolutely control it, it is called a "corner." Those who succeed in effecting a corner will not let the "bears" cover their "short," except at extraordinarily high prices.

"A SQUALL."

Depressing news that comes unexpectedly upon the market, and frightens the timid speculators into letting go their holdings.

"A SLUMP."

A continuation of depressing influences which makes the margin dealers sell out.

"A PANIC."

A time when most of the "bulls" have been wiped out and everybody is a "bear" on the market and goes "short" because it is the prevailing sentiment.

"Squalls," "slumps" and "panics" are disastrous to the ordinary speculator, and ruin them by the thousands. They represent, however, the very best opportunity for money making, as has been shown in hundreds of instances. They will give this Company the chance to buy the best sort of securities at prices so low as to make big profits a certainty. It is under these conditions that this Company will make its purchases. With patience enough and capital enough it is possible by acting promptly at the time when these bargain days occur to make more money in Wall Street than in any other place in the world.

"A RALLY."

A state of affairs which exists almost immediately after the public has unloaded its "long" stocks and put out a "short" line.

"A CALL."

A privilege to buy a certain number of shares at a given price within a certain space of time.

"A PUT."

A privilege to sell a certain number of shares at a fixed price within a given period of time.

"A SPREAD."

When an operator buys or sells both a "put" and a "call."

"ON CURB."

The private dealings made outside the Exchanges. A curb-stone broker is a familiar figure and carries on his business every day in Wall Street.

"INSIDERS."

There are two classes of Wall Street men known as "insiders." One is a class which is really inside. Officials of Corporations, of banks and Trust Companies and wealthy financiers who really control the properties dealt in the Exchanges are really "insiders." They control the market, but never give out under any circumstances any information, and in most cases they do not know themselves just what they are going to do from one day to the next.

The other set of "insiders" are those who only make the "lamb" think they are on the inside. They never have any money of their own to speculate with, and they sell their "knowledge" to outsiders for fraction profits when there are any. They advertise and give out their pretended information, and have it sent out all over the world, knowing that every city and town may be depended upon to produce "lambs."

BUCKET SHOPS.

A place where you can bet whether a stock will go up or down. You do the guessing and the "bucket shop" makes the money. If you win sometimes you get your money back and sometimes you don't.

"TIPSTERS."

The "tipster" in Wall Street is like the tout on the race track. He pretends to know all about it, and is a very solemn and mysterious individual. He tells one man to buy and another to sell, knowing that whichever way the market goes one of them will be a winner, and the "tipster" will get his share. The one who wins tells his friends, who think the "tipster" must be a wonderfully shrewd individual, and in this way he builds up a profitable business, and the "lambs" come flocking his way. He keeps on telling one set of his victims to buy a certain stock, and another set to sell it. Whether the stock goes up or down the "tipster" wins, and those who are on the right side of this particular deal spread his name and fame among their acquaintances.

"INFORMATION BUREAUS."

These bureaus are "tipsters" pure and simple, only they travel under the name of a "bureau," instead of their individual names.

"A SCALPER."

One who is in the market continually guessing and gambling on the rise or fall. He risks a thousand dollars to gain twelve and one-half dollars.

DEALING ON MARGIN.

This means that the buyer of a stock only deposits with his broker a small part of the value of the shares he is buying or selling. He is simply gambling, and very hazardous gambling it is. If he guesses wrong, he must pay up more and more margin or lose altogether. Dealing on margin is the favorite sport of the "lambs," and it is very profitable, indeed, to those who take advantage of their misfortunes. The odds are all against the speculator on margin, and sooner or later his money disappears and he disappears with it.

A SUCCESSFUL OPERATOR.

A man who is neither "bull" nor a "bear," but simply waits and takes advantage of opportunities. He knows the power of money. He knows the weakness of the public, and how gullible it is. He knows how to worry and scare the people. He sets his machine for the game and gets it. Ordinary market affairs do not interest him. When a "squall" appears he is notified instantly, and gets ready for business. He knows all about the stocks that he deals in, precisely what they are, and just what to do. He knows what to buy and just to a fraction when to commence to buy it. He gives his orders, pays no more attention to it, except to see how much he got. He buys just as closely to the bottom as it is possible to get, and when it is all over he goes away happy, asking to be notified when the market is up again.

_CONCLUSION._

The contents of this book, including the Wall Street definitions given above, should give the reader a pretty clear idea of what is done on the New York Stock Exchange, and just why and how the blundering public is continually losing its money and giving Wall Street a black name.

_It should convince you that you cannot afford to attack Wall Street by the methods that have been tried so many thousands of times and found to be utter failures._

About the worst possible thing that can happen to a man is to take a "flyer" in Wall Street and win. His winning convinces him beyond a doubt that he knows all about it, and he goes deeper and deeper, sometimes winning a little, but oftener losing, until some extraordinary turn of the market, some unforeseen incident, or some reckless piece of speculation wipes him out. That is the record of the guesses of ninety-nine out of a hundred men who try to take money out of Wall Street.

What is the use of following right along in their footsteps and trusting to dumb luck or something of that sort to pull you out?

If you have any money that you want to make money with, go into Wall Street through our medium, and place your money in hands where it will not only be perfectly safe, but where it will be handled in the only way that can possibly beat Wall Street.

There is no doubt at all about this.

_The thing can be done, has been done, is being done, and will always be done._

And the men who are doing it are piling up enormous fortunes for themselves, they are the only men who get the money in the end.

If you want to be on their side instead of on the losing side, the only possible way you can do so is in the manner outlined in this book and we offer you the best, most favorable and safest opportunity.

_QUESTIONS AND ANSWERS._

Q. How many small "lots" can you handle with a capital of one hundred thousand dollars?

A. About one hundred.

Q. In case of a sudden "slump," say twenty per cent., what is the result?

A. No change of base is made.

Q. Suppose some lots are on hand bought at higher prices?

A. They are kept until sold at a profit, meantime paying a dividend.

Q. Why do you buy dividend paying stocks?

A. Because they carry themselves.

Q. How often do you make purchases in a declining market?

A. That depends on the market, the stock, the times, and conditions generally, which can be properly judged by the managers, who are devoting all their time and facilities to the business, and know the exact condition of every property dealt in.

Q. What would be the effect of an unexpected calamity?

A. Panics are a great help to this method.

Q. How often do you make purchases or sales?

A. About every day, as some one or more of the different stocks have moved sufficiently to do some purchasing or selling.

Q. Do you expect to carry a stock a year before you can sell it?

A. Yes, if necessary, but not likely, because first purchase only begins when the stock can be had at a bargain and is only a small "lot," and when the average has been reached and sufficient profit made, all the little lots may be sold as one lot. It is not contemplated that this will be done unless it was desirable to close out in any particular stock. There may be some loss on first purchase, but the lowest purchases have handsome profits, and the transaction as a whole renders large returns, when it is closed out and the process commenced over again, and again.

Q. Do you guarantee investments made in the bonds of your company?

A. Yes, because we know the security is absolutely safe, and we have on hand all the time during the three years either the cash or an equivalent amount in sound dividend shares in the most prosperous railway and industrial corporations in the world.

Q. Do you guarantee interest on the bonds at the rate of five per cent.?

A. Yes, we guarantee the principal and that the profits to the investor shall not be less than five per cent. per annum, payable semi-annually, and we will pay it regularly, but it will be charged against the gross profits, the same as commissions.

Q. How much more than five per cent. do you expect the bonds will earn?

A. At least 25 to 50 per cent. per annum.

Q. What are the denominations of the bonds?

A. Twenty-five dollars and upwards. We issue them in regular numbers to the purchasers for the amount of his or her investment, the same as a life insurance policy is issued.

Q. Will these bonds have a market value during the three years?

A. Yes, and will sell above par after the first six months.

Q. Why do you issue bonds for only twenty-five dollars?

A. So as to give small investors the opportunity to join with capitalists for savings and better returns than they can get elsewhere.

Q. Do you consider your bonds as safe and profitable as savings banks?

A. Yes, and more so, because the security is better than any savings bank which receives money, pays a low rate of interest, and loans it out on securities that do not always have a cash value. Our bonds are secured by an equivalent in cash or the safest and soundest dividend paying securities in the world, and can be sold instantly every business day in the year; furthermore, they earn not less than 5 per cent. per annum, with a practical certainty of a great deal more.

Q. How do you buy the securities?

A. Through our brokers on the floor of the exchanges.

Q. Can a bondholder in your company have information of the condition of these investments any time?

A. Yes, every day, if he wishes.

_Correspondence is invited, and the fullest information will be frankly given._

Henry Voorce Brandenburg & Co. Incorporated, Capital $100,000 BANKERS No. 6 Wall Street New York City

H. V. Brandenburg, _President_ Charles Austin Bates, _Treasurer_

Capital _for_ Good Projects

First-class propositions in railroad building, gas and water plants, electric lighting and power, street car lines, mines and industrial and mercantile projects fail because those who control them lack capital or the knowledge and facilities for obtaining it.

It is our business to supply capital for meritorious enterprises. Thousands of people have millions of dollars to invest, and yet hundreds of good enterprises lie dormant for lack of cash. There is plenty of money for any really good projects.

We organize companies, effect consolidations, create and guarantee bond issues and act as trustees and fiscal agents.

We buy and sell Government Bonds and other securities dealt in on the New York Stock Exchange and other exchanges, and give disinterested advice to clients seeking investments.

We own and control investment securities paying from 3-1/2 to 12 per cent. dividends, and will be pleased to send our regular list on request.

We buy and sell real estate and deal in real estate loans.

Henry Voorce Brandenburg & Co. BANKERS 6 Wall St., New York City

BRANCH OFFICES Girard Building, PHILADELPHIA Salisbury House, LONDON