eference to their
speculative possibilities. We believe that investors always should give
some consideration to the speculative possibilities of their purchases.
It frequently is possible to get speculative profits without increase of
risk or loss of income.

Bull: One who believes that the market price of stocks will advance is
called a bull. Of course, it is possible to be a bull in one stock and a
bear in another. The word is used very frequently with reference to the
market, a bull market meaning a rising market.

Bear: The opposite of a bull is a bear. It refers to a person who
believes that the market value of stocks will decline, and a bear market
is a declining market.

Lambs: "Lambs" refers to that part of the public that knows so little
about stock speculating that they lose all their money sooner or later.
The bulls and bears get them going and coming. If the lambs would read
this book carefully, they would discover reasons why they lose their
money.

Long and Short: Those who +own+ stocks are said to be long, and those
who +owe+ stocks are said to be short. Short selling is explained in
Chapter XVII.

Odd Lot: Stocks on exchanges are sold in certain lots. On the New York
Stock Exchange, 100 shares is a lot; and on the Consolidated Stock
Exchange, 10 shares is a lot. Less than these amounts is an odd lot.
When you sell an odd lot you usually get 1/8 less than the market price;
and when you buy an odd lot, you usually pay 1/8 more than the market
price; that is, 1/8 of a dollar on each share where prices are quoted in
dollars.

Point: It is a common expression to say that a stock went up or down a
point, which means a dollar in a stock that is quoted in dollars, but a
cent in a stock that is quoted in cents, as many of the stocks are on
the New York Curb. In cotton quotations, a point is 1/100 part of a
cent. For instance, if cotton is quoted at 18.12, it means 18 cents and
12/100 of a cent per pound, and if it went up 30 points the quotation
would be 18.42.

Reaction: Every person who has traded in listed stocks probably is
familiar with this word. It means to act in an opposite direction, but
it is used especially to refer to a decline in the price of a stock that
has been going up.

Rally: "Rally" is the opposite of the sense in which "reaction" usually
is used. When a stock is going down and it turns and goes up, it is
called a rally.

Commitment: This term is used referring to a purchase of s