| Show r 1 SHORT SELLING IS 19 DANGEROUS P PRACTICE Small Speculators Are Facing Pacing Immense Losses I w lULLS LS l Ma Mass S May I 18 18 1 he recent bear boar zaid In Inthe Inthe Inthe the stock market have led H a lar number o of oC small speculators to 10 be- be bc that hat good stock market marJet da s sare In th are ara over oer 01 tr fancy Quarter is turning to shok short hoh sellin Sine Since the technical position of ot the market is s being undermined by this moie mose Ro er W s v this Issued today Is pal I 1 do tb not to b able to forecast the short hort s sInge sInga Inga of DC o the stock mal kel 1 says as s Ml Ill but 1 do know that the short m- m in ten t developed since the I bear hear probably the largest Iii tI recent tears earS cars cached cachel i u a point pOll luyo It lt Iser is Ii er er cry dangerous This I 1 sl sJ due to to the tact act that ape ape- 8 II ill or OHr o cr the 0 been carried aa away aay by Lq Lee pre and hive h gon gone hol hoit t just s they bu buy stocks hul conditions look optimIstic It looks as easy to sell as to buy and It Is my guess that the 0 do not un UD-dei UD t t of oC these d 1 stand the position that selling places them in oj D I ct ue tit sic se hat nhat hat happens It itou OU Ue gLe your our uD in order to elt lou luu of oC o some stock he actually borrows borros the stoel one ot of ills his other It or from Crom some other broker lie He actually sells eils this boi ro for tor or 3 you o lou ou put up the tho cash to gu Its pros lit aile alLCot ot 01 a margin deposit to 1 1 you blokel ir IC the ato k happens to togo go up you ou are aro called on or mOl margin It l you can I t COer cover CO er it th broker bus buys the stock In at th the In market and returns it to th tin nat nal 0 ner lou loll stand the he I loss baa bo 0 tar far selling presents only the dangers attending ordinary mall ma al gin gin- ginat at 01 bu a buying Ing-a Ing a left Zes points In the tho rong direction and sou ou are arc ip d out It must also bo be borne In mind holl eHr that you ou borro borrowed cd the stock lock and that you did not net boro boro it II for Cor an am gh given giten en time The fhe u 0 MICI nel nei an an ail lall all on sou ou at any time fur for It and you ou must return It It ii OUI broker broJer can borrow some mor inor mors for ou somewhere here else all ht rl ht but buL uL the tho hd If It if he can t ou on must buy In the open market marJet and It I no maUlT ho how ho high its ils I trice rice not nor how much cash you ou ou hose Ia e to Lo pro pro- protect protect protect your margins Moi 1101 eo eo cover or er i z these luo shares pay a dil which you ou are lOt ot of then ou must also pay lay that thaL NO 0 o mill Ll JO 10 LiOSSIS LOLS Multiply sour our our u own hort horL POI position and tn th tion lion b by everal beveral thousand danger ot of o the practice h i ent The fhe short bort 1 est IS S Sery the r cry ery soon larger than ot of shares chares ot of the given stock are for tor bale ale ale ance ad t to 01 points and a It few of ot the Ibe sho ts cani it put up Uil the J mal margins gins Brokers go into the market to buy the stock to letur It Ilie demand raises s a abit abit bit then there ale aie more that are forced to cover The fhe markt and brokers rush In to get et the tile securities they must behold behold aro no mOle moio f- f fr for r sale sail Prices J and the S who ho ho are tare are Ip d dout out It Is interesting to note huo that there is no limit to OUI oci loss S 'S 5 on a a short sale It lC you OU buy a stock 01 t 50 SO you ou oti cannot possibly lose mOe ethan ino-ethan SO O points but 11 1 I lyou 1 ou sell It short hort at 50 It ma ina may go to or OO or even elen to tu 1000 and you ou must r co and stand tand the loss ios ii O L The rile short for tor ere ere caught In Stutz in AlII pill 11 1920 1910 rhe stock BLock had haJ been silling Let en and The moment the short sales exceeded the tile uL 01 I pi Ices started Iii t climb and went sent to 74 The M N Y tock stock Exchange then stepped In la but the short Interest re had to 10 settle atthe atthe at the rate of oC a i share The same stock ma ina may be had today around su 20 0 1101 Moie loie e recently recent the corner In Pig Pig- gly ig 11 gl W 1 has illustrated on e emore emore more Ih the extremely weak posItion of oC the speculator who ho is t Th's stock had been trading between 40 and 64 1 The he majority ot of the t Interest bl sold at around 50 hen the stock was as called foi tOl there thereas as as none Done to be had soared nd tI it was as taken off oCt the echang was s as finally made it t t th thi jute j te ot of a share These spectacular cases our point but do not repe- repe rep represent c sent the K gleat 1 eat losses resulting Iron short sell selling mg Millions or of o are aro endangered today loday in the short side ot of the pre present ent a glow glow- glowIn inc log In that gets gc s shakier ler as it piles plies higher A rIse o ot oC three to 10 CI tue CIe e points would start the that hat would wipe this tills Ir- Ir lr il elest eat out t conditions do not Dot indicate that business ha has gone to pot poL 31 lUll goo BOO 1 I Conditions arc are again itai I the short selera cler a an 1 thell chances to ein dwindle dindIe as I the short Interest plows I PEnS PEnSIn In fact act general business as ns ro- ro re In the is still above normal b 4 per cent eo- eo col Mi Oil J ard d dI I III doubtless continue into 1924 Thee The Theis is nothing in one fundamental it situ situ- situ situation atlon to Indicate to that tho the stock market ha has reached Its lis stop Short hort selling at at best Is dangerous hort selling a against fundamental Londi- Londi condl Is apt aFt to 0 be suicidal MIJI ti I Mi EW EW May 18 Co Copper per steadier electrolytic spot n And nd 1 tu- tu fu futures tures Lures 15 16 Tin fIn firm spot and nd nearby 42 87 futures 43 12 Iron easy 1 0 I o o 1 I n 30 SO 00 OU q-D q 32 00 o 2 northern 29 00 81 OU cc 0 o 2 southe southern n 2700 27 00 Lead Steady teady spot pot I 7 25 zinc steady East EASI st stLouis StLouis t Louis spot and nearby dell y delley y c-y 6 70 75 Antimony spot Z 40 MO 10 NY f MAnKUT NEW EW May olay Call lS IS money high 4 low 44 4 2 tates lales 41 closing bid 1 4 offered at 4 last loan 44 id d I Iloan loan against acceptances 4 time loans stead tead steady mixed collateral 60 90 90 da days das S 5 6 4 months i l 5 prime commercial paper f b 6 |
