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diff --git a/44052-0.txt b/44052-0.txt new file mode 100644 index 0000000..9827134 --- /dev/null +++ b/44052-0.txt @@ -0,0 +1,1115 @@ +*** START OF THE PROJECT GUTENBERG EBOOK 44052 *** + +Transcriber's Note: Minor typographical errors have been corrected +without note. Irregularities and inconsistencies in the text have +been retained as printed. Words printed in italics are noted with +underscores: _italics_. The cover of this ebook was created by the +transcriber and is hereby placed in the public domain. + + + +_Profitable Stock Exchange Investments_ + +_PRINCIPAL AND INTEREST GUARANTEED_ + + +_Henry Voorce Brandenburg & Co. +(INCORPORATED) +BANKERS +6 WALL STREET, NEW YORK, N.Y._ + +_Copyrighted 1901 +Henry Voorce Brandenburg & Co._ + + + + +PREFACE + + +This book is published to show the absurdity of trying to make money +speculating in Wall Street without adequate capital and the ease with +which it can be made with capital and proper methods. + +The following pages open to the public a safe, conservative, and highly +remunerative channel for the investment of their surplus funds, which +does not have the element of risk and uncertainty that exists in +general business. + + + + +PROFITABLE STOCK EXCHANGE INVESTMENTS + + +You read a great deal about the money lost in Wall Street. + +_As a matter of fact there isn't any money lost in Wall Street._ + +_It simply changes hands._ + +People talk loosely about gamblers and speculators losing all their +money in the end. + +If money is lost, somebody has got to win it. + +The people who go plunging around in Wall Street making all sorts of +speculations on margin naturally lose their money. They ought to expect +to lose it, and they ought to lose it whether they expect to or not. +They are simply gambling with all the odds against them. + +Meanwhile, the wise and shrewd operators follow prudent, business-like +methods and get the money. + +The Vanderbilts, Goulds and Morgans of Wall Street are sometimes +described as robbers waiting in their dens to slaughter the poor +innocents who venture within reach. That is all nonsense. _They win +because they know how to play the game, and others who have sense +enough and patience enough to play the game in the same way will win +too._ They absolutely cannot help winning. + +The purpose of this book is to inform the reader fully as to the +methods by which money can be taken out of Wall Street--the methods +used by the successful operators of the past twenty years to our +knowledge--the methods which positively must win year in and year out. + +We purpose to give the public an opportunity to make a safe and +profitable investment in Wall Street, and have their money handled for +them according to correct and profitable methods. + +The men who win in Wall Street are those who invest in stocks--good, +dividend-paying stocks, buying them when they are low, selling them +when they are high. + +This is not gambling nor speculation any more than any legitimate +business is gambling or speculation. + +In all classes of business we buy at a certain price, and sell at a +higher price. + +_We buy under the most advantageous circumstances possible, paying +the least possible price and selling at the highest market price._ + +This is what we are doing in Wall Street, and as we handle only the +stocks of sound and stable corporations, the security behind our +operations will be the strongest in the world. + +The gist of the matter is that the stocks of the leading and most +stable corporations of the country are tossed about in Wall Street from +speculator to speculator, going up and down constantly and varying +enormously in the prices at which they are bought and sold. + +These changes in prices are nearly always due to a feverish and excited +market. The stocks themselves do not actually vary in real value. They +are worth a certain sum all the time. They are paying dividends on that +sum and the stocks at their real value are always a good investment. +Yet by the manipulations of the speculators and on account of the +exigencies of these Wall Street marginal gamblers such stocks can be +bought at times at a fraction of their value, and by reason of the same +causes can be sold at other times for far more than they are really +worth. + +_The men who make the money in Wall Street are those who know what +stocks are really worth and who buy when prices, go down and sell when +they go up,_ buying and selling the same stocks over and over again, +and making a handsome profit on every transaction. They do not care how +low a stock they hold goes for the reason that the stock belongs to +them, they know what it is actually worth as a dividend payer, and in +the skyrocket performances of the speculators of the Street they take +no interest except as it gives them opportunities to buy and sell. They +do not care how high a stock goes; they have no shortages to cover, but +can simply sit back and sell as much of their holdings as they choose +whenever they see an opportunity to make a big turn. + +Such men will turn a block of stock in a given corporation over and +over dozens of times in the course of a year, making so much money on +it that even if the stock should disappear off the face of the earth +altogether, they would still be far ahead on it, simply on account of +the numerous advances and declines. + +By owning stocks in a large number of good, sound corporations, they +will average to make a certain sum of money every day in the year. They +spread their invested capital over a wide field in this manner, and the +laws of average make them sure gainers at every stage of their +operations. + +_This is, as you will observe, very similar to the principles upon +which the great life insurance companies are managed._ + +Many of these commenced business starting with but a few thousand +dollars, and they now have assets of millions. They have piled up this +enormous wealth by insuring the lives of human beings. + +Every company which has not succeeded has failed because it did not +issue a certain number of policies. + +_The secret of success is the large number of risks reducing the +chance to a minimum._ + +No life insurance company could succeed if it insured but a few lives. + +By the law of average, insurance companies can tell just how many of +the people they insure will die each year. + +When you make an application for life insurance the first question they +will ask is your age, and by referring to their tables they can tell +you the month and day when you will die. Now, you may not actually die +upon that day, but you do theoretically, and the point is that they +have so many risks that the law of average, always prevailing, in the +end brings everything out just as figured. + +The fact that one person lives longer than the date when his life +should end is offset by the fact that another person dies sooner than +expected, and thus the law of average is absolutely maintained. + +The postal authorities could not come anywhere near telling how many +letters would be mailed in the City of New York on a certain day, but +they can come with remarkable closeness to the average for a year in +advance, and predict with certainty how many people will write letters +and forget to address them during that time. + +_It is by the working out by the law of average as best exemplified +by the insurance business that it is possible to work out a plan by +which Wall Street stocks can be dealt in with absolute safety and +certain profit._ + +Of course, no man or company could purchase one hundred shares of stock +without the risk of a loss. That is to say, no man should make a +purchase of this kind unless he is in a position to buy again and again +many times over and still hold all that he has previously purchased. + +Buying a certain quantity of stock in one corporation is very much like +an insurance company insuring the life of one man. But when you buy +thousands of shares of stock in various corporations, some stocks going +up and some going down, the law of average is an absolute protection +and the statistics of stock fluctuations for the past twenty-five years +show beyond the possibility of doubt that this is true. + +The fluctuations in the prices of good, dividend paying stocks are +something remarkable. _Some active stocks show a fluctuation of five +thousand times their value in a year, thus offering a continual +opportunity for money making._ + +These are the stocks which are constantly speculated upon, the stocks +on which so much money is lost and upon which the cool headed and +careful operators make so much. + +The Western Union Telegraph Company's shares have always paid 5% +dividend, and the average market price has been about 90, making the +income about 5-1/2. Now, suppose it is purchased in ten-share blocks on +every one per cent. decline and none sold above the average price, it +will show an income of more than 43% per annum, besides some dividends. + +_Suppose the very worst were to happen and there was a 20 point +decline in Western Union, then we would have_ + + 10 shares at 90 $900 + 10 " " 89 890 + 10 " " 88 880 + 10 " " 87 870 + 10 " " 86 860 + 10 " " 85 850 + 10 " " 84 840 + 10 " " 83 830 + 10 " " 82 820 + 10 " " 81 810 + 10 " " 80 800 + 10 " " 79 790 + 10 " " 78 780 + 10 " " 77 770 + 10 " " 76 760 + 10 " " 75 750 + 10 " " 74 740 + 10 " " 73 730 + 10 " " 72 720 + 10 " " 71 710 + 10 " " 70 700 + ------- + Total Investment $16,800 + +It will be seen that $16,800 will handle a ten-share lot of Western +Union Telegraph through a regular "Black Friday" panic, with a +resulting investment as stated above. It must be borne in mind that the +average prices of these purchases is 80, giving a dividend of 6% on the +investment, but when the market has resumed its normal condition (90), +the profits will be $2,100, exclusive of dividends. + +If lots of 100 shares each were purchased, there would be profits of +$21,000 exclusive of dividends. + +_The shares of the American Sugar Refining Company fluctuate 4,900 +times their par value every year, and our method applied to them will +give a profit of from 200 to 300% per annum, exclusive of +dividends._ + +While we refer to the possibilities in making investments in Western +Union and American Sugar Company's shares, we include in our operations +a number of different securities, all at the same time. + +For instance, when we would purchase one hundred shares of one stock, +we divide it into five or ten different lots and do the same thing in, +say, ten or twenty different stocks all at the same time; therefore, +instead of having on hand a few large lots, we have two or three +hundred small lots, purchased down to the lowest prices, and by +purchasing outright a large quantity in little "lots" at different +prices, the average cost eliminates the risk of loss and insures +certain profits. + +According to the results of speculation and manipulation, the twenty +different stocks that we deal in do not usually all go down at the same +time. Some are going up, while others are going down; therefore, we are +receiving profits in one, while making advantageous investments in +another. + +_We have been established in Wall Street for a number of years, and +we know about the various stocks on the market, their value and earning +capacity._ We know the stocks which are most sought after by +investors, and the stocks which are used by speculators to make money +out of the public. + +We now offer to the public the best plan for a legitimate investment +speculation. We have an authorized issue of $500,000 debenture bonds +due and payable in three years, with interest at 5%, payable +semi-annually, for the purpose of buying and selling stocks and +securities as dealt in upon the stock exchanges of New York. + +_In consideration of one-half of the net profits accruing from these +investments we guarantee the bonds and interest at the rate of 5%, and +conduct, manage and direct the business._ + +We distribute the net proceeds on the first of every month, one-half to +the bondholders and one-half to our company. + +These bonds are issued in sums of $25 and upwards, as purchasers may +direct, and are transferable only upon the books of the company. + +_The first thing to be sought is absolute safety in investment._ +Only sound, dividend paying securities will be bought and only at a +bargain when it is known beyond question that the price is below their +actual earning power. Having purchased and paid for the securities the +bondholders become the owners of them, and they will be placed in our +vaults until such time as they can be sold at a handsome profit. + +_No get-rich-quick methods will be used, and no speculation indulged +in._ + +No large amount of money will ever be tied up in one stock. + +The operations will be spread over a large amount of ground, making +small investments in proper securities, thus practically eliminating +all risk of loss. It is more certain than life insurance business. + +The chances of loss will be considerably smaller than they would be in +banking, manufacturing or mercantile enterprises. + +Purchases will commence when a stock is over-depressed and evidently +selling below its real value. + +Purchases will continue so long as the price continues to go down. + +These stocks will then be held and we will have every advantage over +the market, instead of the market having the slightest advantage over +us, as it does over ninety-nine out of a hundred speculators. + +_When the speculator is forced to sell at a low price we begin to +buy._ + +When he is forced to buy at a high price we will be ready to sell. + +We have the advantage over the market at every stage of the game. + +The market cannot force us to do anything because we are in a position +to do precisely as we please. + +_This business is strictly cash, buying for cash and selling for +cash, trading in securities of strong, dividend paying corporations and +going steadily forward every business day in the year._ + +No credit will be extended or asked. + +There will be no bad debts. + +No money has to be expended for plant, equipment or other costly things +which figure in ordinary lines of business. + +_Every cent of money will keep working all the time, and such of it +as is not invested will be drawing interest in a Trust Company._ + +There will be absolutely nothing to worry about. + +When we want to buy other people are unloading. They have been frozen +out and have to sell. + +The more freezing out there is, the more panicky things get, the better +it is for us. + +There is more money to be made in one panicky day than there is in +weeks of ordinary Wall Street trading. + +Then, on the other hand, when everything is looking first-rate and +prosperous, Wall Street is full of people who want to buy. There is +where we are ready for them again. + +We bought the stocks when people had to sell them. + +Now the people want to buy and we are right on hand with the +goods--bought cheap at the proper time and now glad to sell at a goodly +profit. + +This method of ours is nothing new or untried. It has stood the tests +of time and made many a millionaire. + +_It is founded upon the firmest possible foundation, and has gone +over squalls, slumps and panics, and in twenty years, to our personal +knowledge, it has never failed to win._ + +We know of a number of people who have become rich by following this +method. We know of one man who operated for fifteen years. He retired +January 1, 1898, reputed to be worth twenty millions of dollars. He +never lost, paid for what he bought, buying proper securities in small +quantities at a declining market, going right along to the bottom still +buying and then holding on until the market was in its normal condition +and he could pocket his profits and be ready to do it all over again. + +You will note that this business absolutely cannot be affected by +financial calamities. + +On the contrary, a panic is a blessing. + +It may seem to you that if this method of taking money out of Wall +Street is so simple, that you can do it yourself. You certainly could +if you had the capital, knew the stocks and their value thoroughly, +could devote your whole time to it, and, what is more important, had +the firmness and will power to follow the method and not be swerved +from it by the temptation of speculation. + +Not one man in a thousand can go into Wall Street and fail to be +influenced by the wild speculation which is going on there, the +apparent opportunities for getting rich in a minute, the tips and +rumors and all that sort of thing. That is precisely why so many people +are wrecked in Wall Street, and the reason why so few succeed is that +they have not the patience and the cool, calm judgment requisite to +play the game in the only way in which it can be beaten. + +The Manager of our Corporation will not be allowed to be influenced by +anything except our instructions. He will be under sufficient bond to +follow his instructions, which will be precisely as outlined above. He +will be a buying and selling machine, oblivious to all outside +influence. He must carry out our orders regardless of whatever may +happen, and he is a man who can be depended upon to do it. + +_A corporation, being a machine, can succeed by this method for the +reason that it must follow a certain outlined course and cannot, and +dare not, deviate from it by a hair's breadth._ + +The individual left to himself in Wall Street soon finds himself +figuring, speculating, making forecasts, listening to tipsters, reading +financial newspapers, living with one eye on the ticker, and pretty +soon he has forgotten all about the method he intended to follow, and +is a plain, ordinary Wall Street gambler--and the shrewd and cautious +wise heads of the Street soon get his money. + +The marginal operator is always at the mercy of the market instead of +having the market at his mercy. + +The wonder is not that so many of them lose so much money, but that any +of them win at all. + +It is only a question of time until they are wiped out. The odds +against them are altogether too great, and while they may weather a few +slight squalls and run along smoothly for a time, sooner or later +disaster comes, generally unexpected and overwhelming. + +What is the use of trying to make money in Wall Street by marginal +speculation when the odds against you are so great? + +If you want to undertake to make money, why not make your attempt a +scientific one? Why not place the money you wish to invest where it +will be handled in a manner by which, as shown by the statistics of +twenty years, cannot fail to win. + +It is no more speculation than it is for a banker to loan money to his +friends and associate business men. + +_In fact, it is not so speculative for the reason that we make +investments in the stocks of companies of standing--stocks which are +just as good as gold, and represent vast enterprises, enormous +properties and great earning power._ + +It may be asked, what will occur at the end of a year's business if +some of the stocks are selling below the price at which they were +bought. The answer is that they are kept in our vaults because they are +safe, sound, dividend-paying stocks, but the dealings in the securities +will show a handsome profit, more than enough to pay for the shares on +hand because the numerous little purchases and the accompanying +reactions in these very stocks have already resulted in a large number +of profits. + +Generally speaking, there will be no stocks carried a whole year +because we will never buy except under forced conditions, and the +reactions are generally very prompt, so we will be able to sell out +quickly at higher prices. + +_It matters not how much you may know about Wall Street and financial +methods and matters in general, you cannot figure out a way in which we +can fail to succeed._ + +Suppose the worst kind of a panic comes, the worst possible period of +financial depression; suppose, we have stocks on hand which are going +lower and lower; suppose, we buy until our buying capacity is +exhausted, and still stocks go down and down; in what way can we be +injured? We do not owe anybody anything, and whatever money we have +made is in the pockets of our bondholders. Nobody has extended any +credit to us, and nobody can hold a club over us. We have no running +expenses that amount to anything--no big rents to pay, no insurance, or +anything else of that sort. There is no pay-roll to meet, no big stocks +of goods to worry about--simply nothing that can squeeze us a penny's +worth. All that we have to do is to wait, and waiting under these +conditions is the easiest thing in the world. + +_The stocks we own are all those in corporations, concerning whose +solidity and assets there cannot be the slightest shade of doubt._ +These stocks all have a certain value, as shown by the earning power of +the corporations behind them. Sooner or later, they have simply got to +go back to their normal, actual, tangible value. So we simply wait +until they go back there, and that is generally a question of a very +short time. Short or long, however, the time must come, and when it +does come, we are in line to reap the richest kind of a harvest. + +There is absolutely no loop-hole in this proposition. There is +absolutely less risk of loss than in any business or other enterprise +you can mention. + +It is a business carried on with good, hard cash, and with every +possible advantage in our favor. + +_The holder of even one bond of $25 stands upon the same footing as +the owner of a large block, receiving regularly the pro rata earnings +represented by his share._ + +The officers and directors are well known men of business, thoroughly +familiar with Wall Street and its methods, most of them having been for +many years actually engaged in some business requiring expert financial +knowledge. + +The bondholders can be assured that their money will be invested and +handled as set forth in this prospectus, first, because the officers +and directors cannot have any motive for doing otherwise, inasmuch as +they know that the method herein outlined is the only one which can win +in Wall Street. They are also protected in every possible way, and +every desired assurance will be given in this respect. + +_The books and records of this Company, open to bondholders, will +show at all times precisely what investments have been made, how money +has been made upon them, what stock are owned by the Bondholders, and +so on._ + +These records can be compared with and verified by the financial +records of the New York Stock Exchange, as published through the +regular channels, so that the bondholder can at all times assure +himself that we have done just what we claim to have done, and that he +has secured his just and equitable share of the profits of the +operation. + + + + +_WALL STREET DICTIONARY_ + + +We give below a few definitions of some of the more important words +used in the financial operations of Wall Street. + +The Street itself has been the center of finance of this country for +nearly a hundred years, when the New York Stock Exchange was +established. + +Here are offices of the greatest and wealthiest financiers the world +has ever known. + +It is the greatest speculative center in this or any other country. + +Here are found the men who create and handle railroads and the largest +industrial enterprises in the world. + +In the Exchange millions of dollars' worth of stocks and bonds are +bought and sold every day. + +Here are found hundreds of banks, trust and safe deposit institutions, +private bankers and capitalists, a money center which controls +seven-tenths of all the money in America. + +In Wall Street you may buy or sell one or more shares of the stock of +any great railway or industrial company in the country. + +Here is where all important enterprises are financed, and where the +public sends enormous sums of money to be invested for speculative +gain. + + +INVESTORS. + +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 + + + + + + +End of the Project Gutenberg EBook of Profitable Stock Exchange Investments, by +Henry Voorce Brandenburg + +*** END OF THE PROJECT GUTENBERG EBOOK 44052 *** |