,successful             ,/ock           
,speculation                     ,by    
,j4 ,j4 ,,butl]              ,writt5    
,april #aibb         ,publi%$ ,decemb]  
#aibb                 ,publi%$ by       
,,national ,,bureau ,,( ,,f9ancial      
,,in=mation        #cie ,broadway1 ,new 
,york ,city          ,?is ,book ,is ,n  
,copyright$     ,we believe ! pr9ciples 
exp\nd$    9 ?is book are ( imm5se value
    to ev]yone :o buys speculative      
securities1 & we d n object to    anyone
 reproduc+ any "p ( x1    :e!r or n we  
are giv5 cr$it    = x4   ,national      
,bureau ( ,f9ancial ,in=mation          
,transcrib]'s ,note3      ,m9or         
typographical errors h be5 correct$ )\t 
note4 ,v>iant     spell+s h be5 reta9$4 
,bold text has be5 indicat$ z     bold4 
,,cont5ts                          ,,"p 
#a                 ,,introductory       
,,*apt]s   ,*apt]                       
,page       ,i4 ,,! ,,purpose ,,( ,,?is 
,,book                 #g      ,,ii4    
,,:at ,,is ,,speculation                

#i     ,,iii4 ,,"s ,,t]ms ,,expla9$     
#ac      ,,iv4 ,a ,,correct ,,basis ,,= 
,,speculat+         #ag                 
,,"p #b             ,,:at ,,& ,,:5 ,,to 
,,buy ,,& ,,sell        ,v4 ,,:at       
,,/ocks ,,to ,,buy                      
#bc      ,,vi4 ,,:at ,,/ocks ,,n ,,to   
,,buy                  #be     ,,vii4   
,,:5 ,,to ,,buy ,,/ocks                 
#bi    ,,viii4 ,,:5 ,,n ,,to ,,buy      
,,/ocks                  #cc      ,,ix4 
,,:5 ,,to ,,sell ,,/ocks                
#ce                          ,,"p #c    
,,influ5ces ,,affect+ ,,/ock ,,prices   
,x4 ,,movem5ts ,,9 ,,/ock ,,prices      
#da      ,,xi4 ,,major ,,movem5ts ,,9   
,,prices               #dc     ,,xii4   
,,! ,,money ,,m>ket ,,& ,,/ock ,,prices 
#dg    ,,xiii4 ,,m9or ,,movem5ts ,,9    
,,prices               #di     ,,xiv4   
,,te*nical ,,conditions                 
#ea      ,,xv4 ,,manipulations          
#ec                          ,,"p #d    
,,topics ,,( ,,int]e/ ,,to ,,speculators
      ,,xvi4 ,,m>g9al ,,trad+           

#fa    ,,xvii4 ,,%ort ,,sell+           
#fe   ,,xviii4 ,,bucket ,,%ops          
#fi     ,,xix4 ,,*oos+ ,a ,,brok]       
#ga      ,,xx4 ,,puts ,,& ,,calls       
#gc     ,,xxi4 ,,/op ,,loss ,,ord]s     
#ge                          ,,"p #e    
,,conclud+ ,,*apt]s     ,,xxii4 ,,!     
,,desire ,,to ,,speculate               
#ha   ,,xxiii4 ,,two ,,k9ds ,,( ,,trad]s
                    #hg    ,,xxiv4      
,,possibilities ,,( ,,pr(it             
#ia     ,,xxv4 ,,m>ket ,,in=mation      
#ie    ,,xxvi4 ,,successful             
,,speculation                 #ajc      
,,"p ,,"o  ,,introductory ,,*apt]s      
,,*apt] ,i4  ,,! ,,purpose ,,( ,,?is    
,,book   ,?is book is writt5 = ! purpose
 ( giv+ our cli5ts "s ideas ( !         
fundam5tal pr9ciples t guide u :5 we    
select /ocks = !m to buy1 b ^! pr9ciples
 are valuable to e p]son :o trades 9    
li/$ /ocks or 9 any o!r k9d (           
speculative /ocks4  ,fir/ ( all1 we want
 y to get a cle> conception ( ! mean+ ( 
! ^w speculation1 :i* is expla9$ 9 !    

next *apt]4 ,our purpose is to protect y
 aga9/ losses z well z to enable y to   
make pr(its1 & x is v important t y     
und]/& h[ to provide = safety 9 y\r     
speculat+4  ,x is a well kn[n fact t !re
 are trem5d\s losses 9 /ock speculation1
 b we claim t almo/ all ( ^! losses w\ld
 be avoid$ if all speculators 7 guid$ by
 ! pr9ciples exp\nd$ 9 ?is book4  ,:at &
 ,:5 are two v important words 9 /ock   
speculation1 & we _c urge ^u y too      
/rongly to /udy c>efully ,*apt]s ,v4 to 
,,ix4  ,*apt]s ,x4 to ,,xv4 tell y mu*  
ab\t ! influ5ces t affect ! prices (    
/ocks1 a k ( :i* %\ld also be a guide to
 y 9 mak+ y\r selections4  ,p]haps ! mo/
 important *apt] 9 ! entire book is     
,,xxv41 on ,m>ket ,in=mation4 ,a c>eful 
read+ ( ?is *apt] %\ld conv9ce y t mu* (
 ! prevail+ in=mation ab\t ! /ock m>ket 
is mislead+4 ,t fact alone acc\nts = _m 
( ! losses 9 /ock speculation4  ,x has  
be5 our aim to /ate all facts briefly4  
,! entire book is n long1 & x w n       
require mu* ( y\r "t to read x ?r\gh    

c>efully4 ,we are sure y w get _m ideas 
f x t w help y4     ,,*apt] ,,ii4  ,,:at
 ,,is ,,speculation8   ,to speculate is 
to !orize ab\t some?+ t is unc]ta94 ,we 
c speculate ab\t any?+ t is unc]ta91 b  
we use ! ^w speculation 9 ?is book )    
p>ticul> ref]5ce to ! buy+ & sell+ (    
/ocks & bonds = ! purpose ( mak+ a      
pr(it4 ,:5 p buy /ocks & bonds = !      
income !y get f !m & ! am\nt ( t income 
is fix$1 !y are said to inve/ & n to    
speculate4 ,9 ne>ly all inve/m5ts !re is
 also an elem5t ( speculation1 because !
 m>ket price ( inve/m5ts is subject to  
*ange4 ,inve/m5t also conveys ! idea (  
hold+ = "s "t :atev] y h pur*as$1 :ile  
speculation conveys ! idea ( sell+ = a  
quick pr(it r ?an hold+ = income4  ,to !
 m9ds ( mo/ p1 ! ^w speculation conveys 
! ?\ght ( risk1 & _m p ?9k x means great
 risk4 ,! diction>y gives = "o ( !      
mean+s ( speculation1 a risky inve/m5t =
 l>ge pr(it1 b speculation ne$ n        
necess>ily be risky at all4 ,! au?or (  
?is book once us$ ! expression1 /ock    

speculat+ ) safety1 & he 0 sev]ely      
criticiz$ by a c]ta9 f9ancial magaz9e4  
,evid5tly ! editor ( t magaz9e ?\ght t  
speculat+ & safety 7 contradictory t]ms1
 b ! expression is p]fectly correct4    
,/ock speculat+ ) safety is possible4   
,( c\rse1 we all "k t ! ^w safety is    
seldom us$ 9 an absolute s5se4 ,we      
frequ5tly read su* expressions z3 ,!    
elevators 9 mod]n (fice build+s are run 
) safety4 ,x is possible to cross !     
ocean ) safety4 ,y c travel f ,new ,york
 to ,san ,francisco 9 a railroad tra9 ) 
safety4 ,& yet accid5ts d occur & p d   
lose _! lives 9 elevators1 /eam%ips1 &  
railroad tra9s4 ,because s]i\s accid5ts 
are comp>atively r>e1 we use ! ^w       
safety4  ,9 l mann] x is possible to    
pur*ase /ocks sometimes :5 x is almo/   
c]ta9 t ! pur*as] w make a pr(it1 & t is
 /ock speculat+ ) safety4 ,:5 ,lib]ty   
,bonds 7 sell+ 9 ! #hj's1 _m p b\ght !m 
= speculation4 ,!y 7 n tak+ any risk1   
except ! slight risk t ! m>ket price    
might g /ill l[] be=e x w\ld g high]1 & 

t did n involve any risk = ^? :o knew !y
 c\ld hold !m4 ,! fact t ! m>ket prices 
( ,lib]ty ,bonds w\ld advance 0 bas$ ^u 
an economic law t nev] fails4 ,t law is 
t :5 int]e/ rates g up1 ! m>ket prices (
 bonds g d[n1 & :5 int]e/ rates g d[n1 !
 m>ket prices ( bonds g up4 ,:5 ,lib]ty 
,bonds 7 sell+ 9 ! #hj's1 int]e/ rates 7
 s v high1 x 0 c]ta9 t !y w\ld come d[n4
 ,t ! m>ket prices ( ,lib]ty ,bonds w\ld
 g up 0 also c]ta91 b nobody c\ld tell  
h[ mu* !y w\ld g up 9 a giv5 "t4 ,x 0 t 
elem5t ( unc]ta9ty t made !m            
speculative1 & n t !re 0 any d\bt ab\t !
 fact t ! m>ket prices ( !m w\ld g up4  
,buy+ ,lib]ty ,bonds at t "t 0 speculat+
 ) safety4 ,if y read ?is book )        
und]/&+1 y w "k mu* ab\t speculat+ )    
safety4     ,,*apt] ,,iii4  ,,"s ,,t]ms 
,,expla9$   ,!re are c]ta9 t]ms us$ 9   
connection ) /ock speculation t are v   
famili> to ^? :o come 9 contact ) /ock  
brok]s1 & yet are n always famili> to ^?
 :o d bus9ess by mail4 ,und\bt$ly !     
majority ( our read]s are famili> ) ^!  

t]ms1 b we give ^! def9itions = ! b5efit
 ( ! few :o are n famili> ) !m4  ,trad]3
 ,a p]son :o buys & sells /ocks is      
usually ref]r$ to z a trad]4 ,! ^w      
probably orig9at$ :5 x 0 cu/om>y to     
trade "o /ock = ano!r & lat] 0 us$ to   
ref] to a p]son :o sold "o /ock & b\ght 
ano!r4 ,he 0 a trad]2 b ! p]son :o buys 
/ocks = a pr(it & sells !m & takes 8    
pr(it :5 he gets an opportunity1 may n  
be a trad] 9 ! /rict s5se ( ! ^w4       
,h[ev]1 = conv5i5ce1 we use ! ^w trad] 9
 ?is book to ref] to any "o :o buys or  
sells /ocks4  ,speculator3 ,?is ^w ref]s
 to a p]son :o buys /ocks = pr(it1 ) !  
expectation ( sell+ at a high] price1   
)\t ref]5ce to ! e>n+s ( ! /ock4 ,he may
 sell fir/1 ) ! expectation ( buy+ at a 
l[] price1 z expla9$ 9 ,*apt] ,,xvii4 on
 ,%ort ,sell+4 ,9 _m cases :]e we use ! 
^w trad]1 x w\ld be m correct to use !  
^w speculator4  ,inve/or3 ,an inve/or   
diff]s f a speculator 9 ! fact t he buys
 /ocks or bonds ) ! expectation ( hold+ 
!m = "s "t = ! income to be d]iv$ f !m1 

)\t ref]5ce to _! speculative           
possibilities4 ,we believe t inve/ors   
always %\ld give "s consid]ation to !   
speculative possibilities ( _! pur*ases4
 ,x frequ5tly is possible to get        
speculative pr(its )\t increase ( risk  
or loss ( income4  ,bull3 ,"o :o        
believes t ! m>ket price ( /ocks w      
advance is call$ a bull4 ,( c\rse1 x is 
possible to be a bull 9 "o /ock & a be> 
9 ano!r4 ,! ^w is us$ v frequ5tly )     
ref]5ce to ! m>ket1 a bull m>ket mean+ a
 ris+ m>ket4  ,be>3 ,! opposite ( a bull
 is a be>4 ,x ref]s to a p]son :o       
believes t ! m>ket value ( /ocks w      
decl9e1 & a be> m>ket is a decl9+ m>ket4
  ,lambs3 ,lambs ref]s to t "p ( !      
public t kn[s s little ab\t /ock        
speculat+ t !y lose all _! money soon]  
or lat]4 ,! bulls & be>s get !m go+ &   
com+4 ,if ! lambs w\ld read ?is book    
c>efully1 !y w\ld discov] reasons :y !y 
lose _! money4  ,long & ,%ort3 ,^? :o   
own /ocks are said to be long1 & ^? :o  
owe /ocks are said to be %ort4 ,%ort    

sell+ is expla9$ 9 ,*apt] ,,xvii4  ,odd 
,lot3 ,/ocks on ex*anges are sold 9     
c]ta9 lots4 ,on ! ,new ,york ,/ock      
,ex*ange1 #ajj %>es is a lot2 & on !    
,consolidat$ ,/ock ,ex*ange1 #aj %>es is
 a lot4 ,less ?an ^! am\nts is an odd   
lot4 ,:5 y sell an odd lot y usually get
 #a_/h less ?an ! m>ket price2 & :5 y   
buy an odd lot1 y usually pay #a_/h m   
?an ! m>ket price2 t is1 #a_/h ( a doll>
 on ea* %>e :]e prices are quot$ 9      
doll>s4  ,po9t3 ,x is a common          
expression to say t a /ock w5t up or d[n
 a po9t1 :i* means a doll> 9 a /ock t is
 quot$ 9 doll>s1 b a c5t 9 a /ock t is  
quot$ 9 c5ts1 z _m ( ! /ocks are on !   
,new ,york ,curb4 ,9 cotton quotations1 
a po9t is #a_/ajj "p ( a c5t4 ,=        
in/ance1 if cotton is quot$ at #ah4ab1 x
 means #ah c5ts & #ab_/ajj ( a c5t p]   
p\nd1 & if x w5t up #cj po9ts !         
quotation w\ld be #ah4db4  ,reaction3 ,e
 p]son :o has trad$ 9 li/$ /ocks        
probably is famili> ) ?is ^w4 ,x means  
to act 9 an opposite direction1 b x is  

us$ especially to ref] to a decl9e 9 !  
price ( a /ock t has be5 go+ up4        
,rally3 ,rally is ! opposite ( ! s5se 9 
:i* reaction usually is us$4 ,:5 a /ock 
is go+ d[n & x turns & goes up1 x is    
call$ a rally4  ,commitm5t3 ,?is t]m is 
us$ ref]r+ to a pur*ase ( /ock4 ,x is m 
commonly us$ by inve/m5t bank]s :5 !y   
contract to buy an issue1 b ! t]m       
sometimes is us$ by trad]s4  ,float+    
,supply3 ,! /ock ( a company t is 9 !   
h&s ( t "p ( ! public :o is likely to   
sell1 is ref]r$ to z float+ supply4     
,,*apt] ,,iv4  ,a ,,correct ,,basis ,,= 
,,speculat+   ,we ma9ta9 t !re is only  
"o basis ^u :i* successful speculation c
 be c>ri$ on cont9ually2 t is1 nev] to  
buy a security unless x is sell+ at a   
price bel[ t :i* is w>rant$ by assets1  
e>n+ p[]1 & prospective future e>n+ p[]4
  ,!re are _m influ5ces t affect !      
movem5ts ( /ock prices1 :i* are ref]r$  
to 9 subsequ5t *apt]s4 ,all ( ^! %\ld be
 /udi$ & und]/ood1 b !y %\ld be us$ z   
second>y factors 9 relation to ! value (

 ! /ock 9 :i* y are trad+4  ,if ! m>ket 
price ( any /ock is f> bel[ its intr9sic
 value & !re is no reason :y ! future   
%\ld br+ ab\t a *ange 9 ?is value t w   
decrease x1 !n y may be c]ta9 t         
important influ5ces are work+ aga9/ !   
m>ket price ( ! /ock = ! "t be+4 ,9 !   
c\rse ( "t ! m>ket price w g up t[>ds ! 
real value4 ,?is matt] w be m fully     
expla9$ 9 subsequ5t *apt]s4  ,y always  
%\ld keep 9 m9d ! fact t :5 y buy a /ock
 at a high] price ?an its intr9sic      
value1 y are tak+ a risk4 ,! /ock may h 
great future possibilities1 b x is risky
 to buy /ocks :5 pres5t assets & e>n+s d
 n w>rant _! m>ket prices1 no matt] h[  
attractive prospective future e>n+s may 
appe>4 ,h[ev]1 ! possibilities ( pr(it  
sometimes are s great t "o is ju/ifi$ 9 
tak+ ?is risk4  ,x is our belief t !    
majority ( trad]s buy /ocks because !y  
are active 9 ! m>ket & somebody said !y 
7 a good buy1 ev5 ?\gh ! real values may
 n be ne>ly z mu* z ! m>ket prices4  ,z 
an example ( ?is k9d ( trad+1 we want to

 call y\r att5tion to a news item t     
appe>$ 9 a ,new ,york pap]4 ,x /at$ t on
 ,april #a/1 "s brok]s 9 ,detroit1 z an 
,april ,fool joke1 gave out a tip to buy
 ,a4 ,f4 ,p41 mean+ ,april ,fool        
,pref]r$1 b :5 ask$ :at x meant1 repli$ 
,am]ican ,fire ,protection4 ,( c\rse1   
!re 0 no su* /ock1 b !re 0 active trad+ 
9 x until ! joke 0 discov]$4 ,evid5tly x
 is n necess>y to li/ a /ock on !       
,detroit ,/ock ,ex*ange 9 ord] to trade 
9 x4  ,?is /ory may or may n be true1 b 
we believe ! /atem5t t p trade 9 /ocks  
!y d n "k any?+ ab\t is true4 ,y %\ld be
 c>eful n to buy a /ock m]ely because   
somebody says x is a good ?+ to buy1    
unless ! p]son mak+ ! /atem5t is 9 !    
bus9ess ( giv+ in=mation on /ocks1      
because x may be only a rumor ) no      
sub/antial basis4 ,( c\rse1 if _m p act 
on ! rumor1 !re w be active trad+ 9 !   
/ock1 & x is frequ5tly = t purpose t su*
 rumors are />t$4     ,,"p ,,two  ,,:at 
& ,,:5 ,,to ,,buy & ,,sell     ,,*apt]  
,v4  ,,:at ,,/ocks ,,to ,,buy   ,9      

decid+ :at /ocks to buy1 x is well to   
consid] fir/ ! classes ( /ocks1 & !n :at
 p>ticul> /ocks y %\ld buy 9 ! classes y
 select4 ,we w\ld fir/ ( all divide all 
/ocks into two classes1 ^? li/$ on !    
,new ,york ,/ock ,ex*ange & ^? n li/$ on
 ! ,new ,york ,/ock ,ex*ange4 ,z a rule1
 x is bett] to buy /ocks li/$ on ! ,new 
,york ,/ock ,ex*ange1 al?\gh !re are    
frequ5t exceptions to ?is rule4  ,!n1 ! 
/ocks li/$ on ! ,new ,york ,/ock        
,ex*ange may be divid$ into classes1 su*
 z railroad /ocks1 public utility /ocks1
 motor /ocks1 tire /ocks1 oil /ocks1    
copp] /ocks1 gold /ocks1 & s =?4 ,at    
c]ta9 times c]ta9 /ocks are 9 a mu* m   
favorable condition ?an at o!r times4 ,9
 #aiai1 :5 ! indu/rial /ocks 7 sell+ at 
a v high price1 ! public utility /ocks &
 gold /ocks 7 sell+ l[1 because x 0     
impossible to increase incomes 9        
proportion to ! increase 9 op]at+ co/s4 
,b s9ce ! beg9n+ ( #aiba1 ! condition ( 
^! two classes ( /ocks has be5 improv+ &
 ! m>ket has reflect$ t improvem5t4  ,at

 ! "t ( ?is writ+ 7e>ly 9 ,april1 #aibb7
 we are recomm5d+ ! /ocks ( only a v few
 manufactur+ companies2 b we are        
recomm5d+ a numb] 7n all7 ( ! railroad &
 public utility /ocks1 & a few specially
 select$ /ocks among ! o!r classes4  ,9 
e in/ance1 :5 y make a selection1 y %\ld
 consid] ! company's assets1 pres5t     
e>n+s1 & prospective future e>n+s1 & !n 
take into consid]ation all ! influ5ces t
 affect price movem5ts1 z expla9$ 9     
subsequ5t *apt]s4     ,,*apt] ,,vi4     
,,:at ,,/ocks ,,n ,,to ,,buy   ,a great 
deal m c be said ab\t /ocks y %\ld n buy
 ?an ab\t /ocks y %\ld buy1 because !   
li/ is v mu* l>g]4  ,/ocks n li/$ on !  
,new ,york ,/ock ,ex*ange1 z a rule1    
%\ld n be b\ght by a c>eful speculator1 
b z /at$ 9 ! previ\s *apt]1 !re are     
exceptions to t rule4 ,billions ( doll>s
 h be5 lo/ 9 ! pa/ by buy+ /ocks t h    
become wor?less4 ,a few ye>s ago a li/ (
 defunct securities 0 compil$1 & x took 
two l>ge volumes 9 :i* to enum]ate !m4  
,new ones h be5 add$ to !m e ye>4       

,!re=e1 x is v important t y %\ld give  
c>eful ?\ght to ! subject ( :at /ocks n 
to buy4  ,ne>ly all promotion /ocks     
7/ocks 9 new companies7 are a failure4  
,an extremely small p]c5tage ( !m are v 
successful1 & ! successful ones are     
ref]r$ to 9 ! adv]tis+ ( ! new ones2 b1 
on ! basis ( av]age1 ! *ances are y w   
lose y\r money entirely 9 promotion     
/ocks4 ,we believe t mo/ ( ! promotion  
companies are />t$ 9 p]fectly good fai?1
 al?\gh "s ( !m are sw9dles f ! beg9n+2 
b no matt] h[ hone/ & well mean+ !      
organiz]s are1 ! *ances ( success are   
aga9/ !m4 ,!re=e1 we say t promotion    
/ocks %\ld n be b\ght by ! ord9>y man :o
 is look+ = a good speculation1 because 
8 *ances ( mak+ a l>ge pr(it ) a m9imum 
risk are v mu* bett] :5 he buys /ocks   
li/$ on ! ,new ,york ,/ock ,ex*ange &   
uses good judgm5t 9 do+ s4  ,among !    
li/$ /ocks !re are _m y %\ld n buy4     
,fir/ ( all1 elim9ate !m by classes4 ,d 
n buy ! classes ( /ocks t are sell+ too 
high n[4 ,y may say t !re are "s        

exceptions 9 all classes4 ,t may or may 
n be s1 b 9 any ev5t1 y h a bett] *ance 
( pr(it+ by conf9+ mo/ ( y\r pur*ases to
 ! classes ( /ocks t are 9 ! mo/        
favorable position4  ,z a rule1 :5 /ocks
 are fir/ li/$1 !y sell mu* high] ?an !y
 d a %ort "t aft]w>ds4 ,( c\rse1 t is n 
always true4 ,x is m likely to be true  
:5 a /ock is li/$ dur+ a v active m>ket1
 :5 prices are m easily influ5c$ by     
publicity4 ,! high price ( x is usually 
due to ! fact t publicity is giv5 to x1 
& z soon z ! effect ( ?is publicity we>s
 (f1 ! m>ket price ( ! /ock decl9es4  ,x
 is a good rule nev] to buy /ocks t     
brok]s urge y to buy4 ,y\r own common   
s5se ought to tell y t a /ock t is      
adv]tis$ ext5sively by brok]s is likely 
to sell up 9 price :ile ! adv]tis+ is   
go+ on & w drop 9 price j z soon z !    
adv]tis+ /ops4  ,_m p notice t & !y ?9k 
!y c pr(it by buy+ :5 ! adv]tis+ />ts & 
sell out :5 !y get a good pr(it1 b !    
majority ( !m lose money4 ,! /ock may n 
respond to ! adv]tis+1 or if x does g   

up1 !y may wait too long be=e sell+4 ,^?
 :o d sell & make #bjj or #cjj pr(it 9 a
 v %ort "t are almo/ sure to lose x all 
9 an ef=t to repeat ! transaction4 ,_m (
 ^? :o read ?is "k x is true f _! own   
exp]i5ce4  ,y %\ld leave su* /ocks      
/rictly alone4 ,y may w9 once or twice1 
b y are sure to lose if y keep x up4 ,z 
a rule /ocks ( ?is k9d h v little value 
& ! brok]s :o boo/ !m make _! own money 
f ! losses ( _! fooli% foll[]s4         
,,*apt] ,,vii4  ,,:5 ,,to ,,buy ,,/ocks 
,/ocks %\ld be b\ght :5 !y are *eap4 ,by
 be+ *eap1 we mean t ! m>ket price is   
mu* less ?an ! intr9sic value4 ,9       
,*apt]s ,x4 to ,,xv4 we talk ab\t       
influ5ces t affect ! price movem5ts (   
/ocks4 ,by /udy+ ^! c>efully y %\ld be  
able to decide :5 /ocks g5]ally are     
*eap4 ,( c\rse1 n all /ocks are *eap at 
! same "t1 b ! majority ( li/$ /ocks d g
 up & d[n at ! same "t1 z a rule4  ,at !
 "t ( ?is writ+ 79 ! e>ly "p ( ,april1  
#aibb7 !re are a great _m /ocks li/$ on 
! ,new ,york ,/ock ,ex*ange t are sell+ 

at prices mu* less ?an _! intr9sic      
values1 b !re are "s /ocks t %\ld n be  
b\ght n[1 nor at any o!r "t4 ,!re are "s
 /ocks li/$ on ! ,new ,york ,/ock       
,ex*ange n[ t p]haps h no intr9sic value
 & nev] w h any4 ,nev]!less we consid] t
 "r n[#a is "o ( ! times = buy+ /ocks4  
,!re are unusual b>ga9s to be _h1 al?\gh
 ke5 discrim9ation is necess>y 9 ord] to
 be able to pick out ! b>ga9s4  ,z a    
usual ?+1 x is a good "t to buy /ocks :5
 ne>ly ev]ybody wants to sell !m4 ,:5   
g5]al bus9ess conditions are bad1 trad+ 
on ! /ock ex*anges v light1 & ev]ybody y
 meet appe>s to be pessimi/ic1 !n we    
advise y to look = b>ga9s 9 /ocks4 ,!   
la/ six mon?s ( #aiba 0 an unusually    
good "t = buy+ /ocks4  ,x is well kn[n t
 ! l>ge int]e/s accumulate /ocks at su* 
times4 ,!y buy only :5 ! /ocks are (f]$ 
at a l[ price & try n to buy en\gh at   
any "o "t to give an appe>ance (        
activity 9 ! m>ket1 b !y buy cont9ually 
:5 ! m>ket is v dull4 ,x seems to be    
*>act]i/ic ( human nature to ?9k t      

bus9ess conditions are go+ to cont9ue j 
z !y are4 ,:5 bus9ess is bad1 ne>ly     
ev]ybody ?9ks bus9ess w be bad = a long 
"t1 & :5 bus9ess is good1 ne>ly ev]ybody
 ?9ks bus9ess w be good almo/           
indef9itely4 ,z a matt] ( fact1         
conditions are always *ang+4 ,x nev] is 
possible = ei!r extremely good times nor
 = extremely bad times to cont9ue       
indef9itely4  ,y c buy /ocks *eap] :5   
!re is v little dem& = !m1 & y %\ld     
arrange y\r affairs s z to be prep>$ to 
buy at su* times4   ,,footnotes3  #a ,9 
our advisory ,lett] ( ,april #be1 #aibb1
 we advis$ our cli5ts to refra9 f m>g9  
buy+ = a :ile1 because ! m>ket 0 advanc+
 too rapidly4 ,%ortly aft] t !re 0 a    
decid$ reaction 9 ! m>ket4     ,,*apt]  
,,viii4  ,,:5 ,,n ,,to ,,buy ,,/ocks    
,!re are times :5 /ocks %\ld n be b\ght1
 & t is :5 ne>ly all /ocks h advanc$    
beyond _! real values4 ,x is d\btful if 
!re ev] is a "t :5 all /ocks h advanc$  
beyond _! real values1 b :5 ! great     
majority ( /ocks h s advanc$1 !re is    

likely to be a g5]al decl9e 9 all /ock  
prices4 ,! /ocks t are n sell+ too high 
w decl9e "s 9 sympa?y ) ! o!rs4 ,!re=e1 
!re are times :5 we advise our cli5ts n 
to buy any /ocks4  ,"s organizations    
giv+ advice 9 reg>d to ! buy+ ( /ocks1  
advise _! cli5ts to refra9 entirely f   
buy+ = p]iods ( a ye> or long]1 b we ?9k
 x is seldom advisable to refra9        
entirely f buy+ = any great l5g? ( "t4  
,!re usually are "s good opportunities  
if y wat* c>efully = !m4 ,x is our      
bus9ess to wat* = ^! opportunities &    
tell our cli5ts ab\t !m4  ,!re are also 
times :5 ! te*nical condition ( ! m>ket 
is su* t we advise our cli5ts to refra9 
f buy+ = a :ile4 ,see ,*apt] ,,xiv4     
,,*apt] ,,ix4  ,,:5 ,,to ,,sell ,,/ocks 
,y %\ld sell /ocks :5 ! m>ket price is  
too high4 ,t is a g5]al rule1 b x is    
necess>y = y to /udy all ! influ5ces    
affect+ /ock prices to be able to decide
 m accurately :5 y %\ld sell y\r /ocks4 
,we give y1 9 future *apt]s1 mu* m      
in=mation on judg+ ! m>kets4  ,ano!r    

g5]al rule1 is to sell /ocks :5 ne>ly   
ev]ybody is buy+ !m4 ,x is a well kn[n  
fact t ! great majority ( p buy /ocks   
ne> ! top & sell ne> ! bottom4          
,naturally :5 ev]ybody is optimi/ic1    
/ocks w sell up high1 b soon] or lat] !y
 w come d[n aga91 & :5 ev]y?+ looks v   
promis+ is a good "t to sell4 ,x is     
bett] to lose a little ( ! pr(it t y    
might h made by hold+ on long] ?an n to 
be on ! safe side4 ,! man :o tries to   
sell at ! top ne>ly always loses1       
because /ocks seldom sell z high z x is 
pr$ict$ !y w1 or1 9 o!r words1 !        
pr$iction ( high] prices is advanc$ m   
rapidly ?an ! prices4  ,we rememb] read+
 9 #aiaf1 :5 ,u4 ,s4 ,/eel sold up ar\nd
 #acf a %>e1 a pr$iction t x 0 go+ to   
sell up to #ajjj a %>e4 ,probably _m p  
:o read su* news items consid] !m       
s]i\sly4 ,( c\rse1 t 0 a mo/ exagg]at$  
pr$iction1 b dur+ ! extreme activity ( a
 bull m>ket1 x seems t ne>ly ev]ybody is
 talk+ 9 exagg]at$ t]ms ( optimism4 ,t  
is :y mo/ trad]s seldom ev] take _!     

pr(its 9 a bull m>ket4 ,!y wait until   
/ock prices />t to come d[n1 & !n !y are
 likely to ?9k !re w be rallies1 & keep 
on wait+ until !y lose all _! pr(its4   
,on ! o!r h&1 "s p make ! mi/ake ( sell+
 too soon4 ,j because y\r pur*ase %[s a 
lib]al pr(it is no reason :y y %\ld     
sell4 ,! /ock may h be5 v *eap :5 y     
b\ght x4 ,9 #aibj1 ,peoples ,gas sold   
bel[ #cj4 ,^? :o b\ght x !n 7 able to   
d\ble _! money by ! close ( #aiba1 & _m 
sold out & took _! pr(its4 ,( c\rse1 if 
!y inve/$ ! proce$s 9 o!r /ocks t 7 j   
/>t+ upw>d1 !y may n h lo/ any?+1 b !re 
0 no p>ticul> reason = sell+ ,peoples   
,gas at t "t4 ,! public utilities       
g5]ally 7 com+ into _! own1 & ne>ly all 
( !m 7 reg>d$ by economic /ud5ts z hav+ 
unusual opportunities = pr(it4  ,!n     
aga91 x is n always a mi/ake to sell a  
/ock 9 ord] to get funds to put into    
some?+ else t seems m promis+1 ev5 ?\gh 
! /ock y sell is likely to g mu* high]4 
,x is v important t y %\ld try to sell  
y\r /ocks at ! "r "t4 ,t is ! ma9 ?+ to 

keep 9 m9d & x is bett] to sell too soon
 ?an too late4 ,don't be too gre$y &    
hold on = a big pr(it4 ,read ,*apt]     
,,xxiv4 on ! ,possibilities ( ,pr(it4   
,,"p ,,?ree   ,,influ5ces ,,affect+     
,,/ock ,,prices     ,,*apt] ,x4         
,,movem5ts ,,9 ,,/ock ,,prices   ,x is  
due to ! fact t /ock prices con/antly   
move up or d[n t speculation is         
possible4 ,sometimes c]ta9 /ocks rema9  
almo/ at a /&/ill = a long p]iod ( "t1 b
 at lea/ a "p ( ! /ocks li/$ on !       
,ex*anges move ei!r up or d[n4 ,if "o   
always c\ld tell j :at way !y 7 go+ to  
move1 x w\ld be comp>atively easy to    
make a =tune )9 a %ort "t4  ,9 ! la/    
tw5ty ye>s1 a great deal ( "t & money   
has be5 sp5t by /ati/ical organizations 
9 *eck+ up /ati/ics = ! purpose (       
asc]ta9+ a def9ite basis ^u :i* to      
pr$ict future movem5ts 9 /ock prices4   
,sev]al ( ^! organizations use v diff]5t
 /ati/ics ^u :i* to base _! conclusions1
 & yet _! conclusions are v simil>4 ,!y 
h prov$ beyond any "q ( d\bt t "s ( ^!  

movem5ts are cle>ly indicat$ by laws t  
nev] fail4  ,we d n attempt 9 ?is book  
to expla9 ! fundam5tal /ati/ics ^u :i* !
 pr$ictions ( bus9ess cycles are bas$1 b
 9 ! next five *apt]s we expla9 "s ( !  
influ5ces t affect ! movem5ts 9 /ock    
prices4 ,read ^! *apt]s v c>efully1 =   
y\r success 9 /ock speculation w dep5d v
 l>gely ^u y\r correct pr$iction ( ^!   
movem5ts4     ,,*apt] ,,xi4  ,,major    
,,movem5ts ,,9 ,,prices   ,/ock prices  
move up & d[n 9 cycles4 ,^! are ! major 
movem5ts 9 prices1 b !re may be _m m9or 
movem5ts up & d[n )9 ! major movem5ts4  
,^! /ock price movem5ts ne>ly always    
prec$e a *ange 9 bus9ess conditions2 t  
is1 an upw>d movem5t 9 /ock prices is an
 indication t bus9ess conditions are go+
 to improve1 & a d[nw>d movem5t 9 /ock  
prices is an indication t bus9ess       
conditions are go+ to get worse4  ,at ! 
pres5t writ+1 we are 9 a p]iod (        
improvem5t4 ,/ock prices began to g up 9
 ,augu/1 #aiba4 ,! upw>d movem5t has be5
 sl[1 b gradual4 ,9 a p]iod ( sev5      

mon?s1 =ty repres5tative /ocks %[ an    
upw>d movem5t ( ab\t #bj po9ts1 al?\gh  
bus9ess has n %[n mu* improvem5t4 ,a    
/eady upw>d movem5t 9 /ock prices is a  
sure sign t bus9ess conditions are      
beg9n+ to improve1 ev5 ?\gh t improvem5t
 is n noticeable4  ,^! major /ock       
movem5ts are n an exact duplicate ( any 
previ\s ones1 & x is impossible to tell 
h[ long !y w la/ or j :at c\rse !y w    
take4 ,c]ta9 influ5ces c\ld *ange a     
p]iod ( improvem5t into a p]iod (       
prosp]ity v quickly4  ,a p]iod (        
prosp]ity is not$ = high prices1 high   
wages1 & increas+ production 9 all l9es4
 ,ev]ybody is optimi/ic4 ,mo/ p sp5d _! 
money freely1 & t makes times bett]4 ,z 
prices g up & bus9ess increases1 m money
 is requir$ 9 bus9ess & int]e/ rates g  
up4 ,z a consequ5ce1 :5 int]e/ rates g  
up1 bond prices g d[n4 ,dur+ ?is p]iod1 
speculative /ocks are sell+ at _! highe/
 prices2 & "u ! influ5ce ( ?is movem5t1 
_m /ocks t h no actual value sell up at 
high prices4 ,( c\rse1 wise speculators 

sell all _! /ocks dur+ ?is p]iod4       
,foll[+ a p]iod ( prosp]ity comes a     
p]iod ( decl9e4 ,! fir/ sign ( x usually
 is a sev]e break 9 ! /ock m>ket4 ,at t 
"t g5]al bus9ess is runn+ along at top  
spe$ & !re is no sign ( a let-up1 b ?is 
break 9 ! /ock m>ket %\ld be a w>n+4    
,mo/ p ?9k ! break is m]ely a tempor>y  
reaction--!y may ref] to x z a ,,heal?y 
reaction--& !y />t buy+ /ocks aga91 &   
put ! m>ket up1 b x does n g up z high z
 x 0 be=e ! break occurr$4 ,:5 /ock     
prices d n rally beyond ! prices at :i* 
!y 7 be=e ! break occurr$1 x is a sign t
 ! turn+ po9t has be5 rea*$ & t ! be>   
m>ket has />t$1 al?\gh ! majority ( p d 
n realize ?is until a long "t aft]w>ds4 
,next comes a p]iod ( depression1 :5 we 
h l[ prices1 l[ wages1 h>d times1 tight 
money1 & _m comm]cial failures4 ,_m p :o
 lo/ all _! money dur+ ! speculation    
p]iod1 become ?rifty & economize dur+ ! 
p]iod ( depression1 & />t 9 to save     
aga94 ,ne>ly ev]ybody is pessimi/ic dur+
 ?is p]iod4 ,trad+ on ! ,/ock ,ex*ange  

is irregul> & z a rule v light4  ,?is is
 ! "t to get /ock b>ga9s1 b ! g5]al     
public z a rule doesn't take advantage (
 x4 ,p are sc>$ & ?9k prices w g /ill   
l[]4 ,! big int]e/s accumulate /ocks    
dur+ ?is p]iod1 & sell !m dur+ ! p]iod (
 prosp]ity4     ,,*apt] ,,xii4  ,,!     
,,money ,,m>ket ,,& ,,/ock ,,prices     
,p]haps no o!r "o ?+ influ5ces ! movem5t
 ( /ock prices s mu*1 9 a l>ge way1 z   
money conditions4 ,x is impossible to h 
a big bull m>ket )\t pl5ty ( money4     
,dur+ a bull m>ket ne>ly all /ocks are  
b\ght on m>g91 :i* is expla9$ 9 ,*apt]  
,,xvi4 ,?is makes x necess>y = brok]s to
 borr[ l>ge sums ( money4 ,:5 money is  
tight1 x is impossible to get en\gh to  
c>ry on a l>ge movem5t 9 /ocks4  ,y w   
see1 !re=e1 t ! ,f$]al ,res]ve ,bank has
 x 9 its p[] to regulate ! /ock m>ket to
 "s ext5t4 ,9 #aiai speculation 0 c>ri$ 
v mu* fur!r ?an x %\ld h be51 b         
und\bt$ly x w\ld h be5 mu* worse _h !   
,f$]al ,res]ve ,bank n rais$ int]e/     
rates & urg$ memb] banks to )draw money 

f ,wall ,/reet4 ,:ile !re 0 consid]able 
criticism ( t action1 x c]ta9ly 0 a good
 ?+ = ! entire c\ntry4  ,9 a p]iod (    
depression1 ! banks accumulate money1 & 
!re always is an abundance ( money at ! 
beg9n+ ( a bull m>ket4 ,dur+ a p]iod (  
prosp]ity ! banks' res]ves decrease & _!
 loans increase4 ,:5 y see ^! res]ves g 
d[n to a v l[ po9t1 x is usually "t = y 
to sell y\r /ocks4     ,,*apt] ,,xiii4  
,,m9or ,,movem5ts ,,9 ,,prices   ,)9 !  
major movem5ts ( /ock prices1 !re always
 are sev]al m9or movem5ts1 :i* are caus$
 by v>i\s influ5ces4 ,"o ( ! important  
causes is ! te*nical condition ( !      
m>ket4 ,ano!r cause might be call$ a    
psy*ological "o4 ,:5 /ocks are mov+ up  
/eadily 9 a bull m>ket1 p closely       
connect$ ) ! m>ket expect a reaction &  
wat* = x4 ,! newspap]s pr$ict x4        
,consequ5tly1 !re is suffici5t let-up 9 
buy+ to all[ ! pressure ( sell+ by !    
be>s to br+ x ab\t4 ,h[ev]1 ! desire to 
buy dur+ reactions is s g5]al1 _m p ru% 
9 to buy & ?is buy+1 9 addition to !    

cov]+ by ! %orts1 puts ! m>ket up aga92 
& if conditions are favorable = a bull  
m>ket1 prices w g up mu* high] ?an !y 7 
be=e4  ,9 l mann]1 we h rallies 9 be>   
m>kets4 ,( c\rse ! pr(essional be>s sell
 dur+ ^! rallies1 ) ! expectation ( buy+
 lat] at a *eap] price4  ,^! m9or price 
*anges mean m to ! majority ( trad]s ?an
 ! major movem5ts4 ,! major movem5ts are
 s sl[ t p get out ( pati5ce1 & yet ^?  
:o are guid$ only by ! major movem5ts   
are op]at+ on a mu* saf] basis4 ,we     
believe t a great] am\nt ( money c be   
made1 ) a m9imum risk1 by be+ guid$     
pr9cipally by ! major movem5ts1 :ile    
tak+ advantage ( ! m9or movem5ts 9 a    
m9or way4 ,h[ev]1 /ocks d n move uni=mly
 & !re frequ5tly is an opportunity to   
buy "s p>ticul> /ock at a b>ga9 :5 ne>ly
 all /ocks are sell+ too high4 ,we try  
to pick out ^! opportunities = our      
cli5ts4  ,reports ( e>n+s by v>i\s      
companies influ5ce /ock prices1 z does  
also ! pay+ ( extra divid5ds or ! pass+ 
up ( divid5ds4 ,a peculi> psy*ological  

influ5ce is notic$ :5 a company decl>es 
an extra divid5d4 ,! price ( ! /ock     
usually goes up1 :ile z a matt] ( fact !
 intr9sic value ( ! /ock is decreas$ by 
! am\nt ( ?is divid5d2 & sometimes x is 
advisable to sell a /ock %ortly aft] an 
advance 9 its divid5d rate4     ,,*apt] 
,,xiv4  ,,te*nical ,,conditions         
,te*nical conditions ref] to !          
conditions t usually affect ! supply &  
dem&1 su* z %ort int]e/s1 float+ supply1
 & /op loss ord]s4  ,x is sometimes said
 t supply & dem& mu/ be equal or else   
!re c\ld n be any sales1 b t is n s4    
,!re are always "s p :o are will+ to    
sell at "s price above ! m>ket :o w n   
sell at ! m>ket2 & :5 ! dem& = /ock is  
great] ?an ! supply1 x goes up until x  
is suppli$ by "s ( ^! p :o are hold+ x  
at a high] price4  ,x works ! same way  
:5 ! supply is great] ?an ! dem&4 ,!re  
are always "s p :o w buy at "s price    
bel[ ! m>ket4 ,!re=e1 :5 ! supply is    
great] ?an ! dem& prices mu/ g d[n4  ,a 
/ock may h an intr9sic value ( #ajj a   

%>e & yet be sell+ at #ej a %>e1 & x c  
nev] sell high] ?an #ej until all /ock t
 is (f]$ at t price is b\ght4  ,h[ev]1 y
 %\ld keep ?is 9 m9d3 if ! real value is
 #ajj a %>e1 soon] or lat] ! m>ket price
 w approa* t figure4 ,t is :y we s      
/rongly urge our cli5ts to buy /ocks t h
 actual values1 or at lea/ prospective  
values f> great] ?an _! m>ket prices1 & 
ei!r to buy !m outright or m>g9 !m v    
heavily1 & !n hold !m until ! prices d g
 up4  ,( c\rse1 :5 "o f9ds t a mi/ake   
has be5 made1 ! soon] "o sells & takes a
 loss ! bett]4     ,,*apt] ,,xv4        
,,manipulations   ,/ock prices are      
influ5c$ l>gely by manipulation4 ,ye>s  
ago :5 ! volume ( trad+ on ! ,new ,york 
,/ock ,ex*ange 0 small comp>$ ) :at x is
 today1 x 0 possible to influ5ce !      
entire m>ket by manipulation1 b x w\ld  
be v difficult to d t today4 ,x is only 
c]ta9 /ocks t are manipulat$2 b if      
conditions are favorable1 _m o!r /ocks  
may be influ5c$ by !m4  ,!re are diff]5t
 k9ds ( manipulation4 ,"o is = ! insid]s

 ( a company to give out unfavorable    
news ab\t _! company if !y want ! price 
( ! /ock to g d[n1 s t !y c buy x 92 or 
to give out v favorable news if !y want 
! price to g up1 s t !y c sell out4 ,?is
 me?od is n practic$ n[ to ! ext5t t x 0
 ye>s ago4 ,public op9ion is /rongly    
oppos$ to x1 & we believe bus9ess m5 are
 acquir+ a high] /&>d ( bus9ess e?ics4  
,me?ods ( ?is k9d are legal b !y are    
morally repreh5sible4  ,ano!r me?od (   
manipulation is ! =m+ ( pools to buy 9 !
 /ock ( a company & =ce x up4 ,if !     
m>ket price ( a /ock is f> bel[ its real
 value1 we believe x is ju/ifiable = a  
pool to =ce x up1 b ! ord9>y pool is    
m]ely a s*eme to rob ! public4  ,!re are
 f\r p]iods to ! op]ation ( su* pools4  
,fir/ is ! p]iod ( accumulation4 ,a     
numb] ( l>ge hold]s ( /ock 9 a c]ta9    
company w pool _! /ock1 all agree+ n to 
sell except f ! pool1 9 :i* all b5efit  
proportionately4 ,!n !y give out bad    
news ab\t ! company4 ,t is v easy to d1 
because f9ancial writ]s usually accept !

 news t is giv5 to !m )\t mu*           
inve/igation1 especially writ]s on daily
 pap]s1 because !y h n ! "t to          
inve/igate4 ,_! copy mu/ be ready 9 a   
few h\rs aft] !y get ! in=mation4 ,see  
,*apt] ,,xxv4 on ,m>ket ,in=mation =    
full] explanation ( ! reason :y f9ancial
 news usually is mislead+4 ,!           
manipulators ( /ock prices c h f9ancial 
news made to ord]4  ,:5 ! g5]al public  
reads ?is news & sees ! /ock go+ d[n1 _m
 ( !m get disc\rag$ & sell4 ,x is j ! "t
 !y %\ld n sell1 b x is a well kn[n fact
 t ! majority ( p d 9 ! /ock m>ket j :at
 !y %\ld n d4 ,! m !y sell ! m ! price  
goes d[n1 & ! pool op]ators accumulate !
 /ock4  ,hav+ secur$ all ! /ock !y want1
 !y give out good news & cont9ue to buy 
! /ock until x />ts to g up4 ,! public  
reads ?is favorable news1 & see+ ! /ock 
g up1 w g into ! m>ket & buy1 :i* puts x
 up high]4 ,all ! "t f9ancial writ]s are
 supply+ good news ab\t ! /ock & !      
public buys x4 ,aft] !y h sold all ( x1 
! public may /ill be anxi\s = m1 & !    

pool op]ators may g %ort ( ! /ock4 ,!n  
!y w beg9 giv+ out bad news1 s t !y c   
buy 9 /ock at a l[] price to cov] _!    
%ort int]e/s4  ,aft] t !y h v little    
int]e/ 9 ! m>ket4 ,if x is decl9+ too   
fa/1 !y may support x occasionally by   
buy+ "s /ock & giv+ out "s favorable    
news4 ,t w make ! m>ket rally & !y w    
sell out ! newly acquir$ /ock ne> ! top 
( ! rally4  ,manipulations ( ?is k9d    
appe> to be go+ on ne>ly all ! "t1 & !re
 does n seem to be any limit to ! numb] 
( suck]s :o fall = !m4 ,b !n1 "o c't    
blame ! public :5 y realize h[ ?or\ghly 
unreliable is mo/ ( ! m>ket in=mation   
giv5 to !m4  ,/ill ano!r k9d (          
manipulation is "o-man manipulation1 :]e
 "o man controls companies1 :i* are kn[n
 z "o-man companies4 ,usually !         
directors ( ^! companies are fri5ds or  
employees ( 81 & 9 _m in/ances he has _!
 resignations 9 8 possession1 s t !y mu/
 d :atev] he wants !m to d4 ,ow+ to !   
/rict rules ( ! ,new ,york ,/ock        
,ex*ange1 x is r difficult = su*        

manipulations to be c>ri$ on !re4 ,b !re
 h be5 _m ( !m on ! ,new ,york ,curb4   
,:5 ! ,curb 0 op]at+ on ! /reet & 0 n "u
 v mu* control1 manipulations ( ?is k9d 
7 v frequ5t4  ,z an example1 suppose a  
man ( ?is k9d has a m9+ company4 ,:5 he 
wants ! /ock to g up1 he s5ds !         
/ockhold]s a great deal ( in=mation ab\t
 ! "w at ! m9e1 & p]haps s5ds !m a      
telegram :5 a new ve9 ( ri* ore is f\nd4
 ,! /ockhold]s ru% 9 to buy m /ock1 & t 
puts ! price up4 ,!n he unloads /ock on 
!m to ! ext5t t !y w buy x4  ,9 a day or
 two1 ! /ock may drop back to less ?an  
"o half ( :at x 0 sell+ at4 ,if ?is     
"o-man manipulator wants to buy any     
/ock1 he w give out a little unfavorable
 news1 & he c get /ock at 8 own price4  
,aft] t ! news is good or bad accord+ to
 :e!r ! manipulator wants to buy or     
sell1 b z a rule he has an abundance (  
/ock t he wants to sell1 & is cont9ually
 giv+ out good news4  ,a few ye>s ago   
!re 0 a man op]at+ 9 ,new ,york :o      
promot$ sev]al companies & manipulat$ !m

 9 a l>ge way4 ,he is out ( bus9ess n[1 
b ! same ?+ is /ill done 9 a small] way4
  ,x is our op9ion t m money is lo/ by !
 public 9 manipulat$ /ocks ?an 9        
promotion /ocks1 & we read a great deal 
ab\t ! enorm\s losses 9 !m4 ,promotions 
t are failures may be p]fectly          
legitimate & conduct$ 9 ! utmo/ good    
fai?1 b manipulations are ne>ly always =
 ! purpose ( sw9dl+ ! public4 ,h[ev]1 ! 
lure ( !m is s great _m p _c )/& !      
temptations ( !m ev5 aft] !y h be5      
trimm$ sev]al times4     ,,"p ,,f\r     
,,topics ,,( ,,int]e/ ,,to ,,speculators
     ,,*apt] ,,xvi4  ,,m>g9al ,,trad+   
,mo/ p :o trade 9 /ocks buy on m>g94 ,! 
ord9>y m9imum m>g9 is ab\t #bj ( !      
pur*ase price1 because banks usually l5d
 ab\t #hj ( ! m>ket value ( /ocks4  ,if 
y put up #bj ( ! pur*ase price ( y\r    
/ocks ) y\r brok]1 he has to pay ! o!r  
#hj1 b he c d t by borr[+ t am\nt f 8   
bank1 & putt+ up ! /ock z security4 ,9  
?is way brok]s are able to h&le all !   
m>g9 bus9ess t comes to !m1 z long z    

money c be borr[$4 ,( c\rse1 !re are "s 
/ocks t are n accept$ by banks z        
collat]al = loans1 & y %\ld n expect y\r
 brok] to sell su* /ocks on m>g94 ,9    
fact1 if he (f]s to d s1 x looks z ?\gh 
he 7 runn+ a bucket %op4 ,see ,*apt]    
,,xviii4  ,_m p ?9k t buy+ /ocks on m>g9
 is gambl+ & t p %\ld n d x = t reason1 
b buy+ on m>g9 is done 9 all l9es (     
bus9ess1 al?\gh x may n be kn[n "u t "n4
 ,if y b\ght /ock outright1 b borr[$ #hj
 ( ! pur*ase price f y\r bank] to       
complete y\r paym5t = x & put up ! /ock 
) him z security1 y w\ld be buy+ on m>g9
 j ! same4  ,9 l mann]1 if y b\ght a    
home & paid #bj ) money y _h & borr[$ ! 
o!r #hj ( ! pur*ase price1 y w\ld be    
buy+ a home on m>g94 ,! pr9cipal        
diff]5ce is t :5 y buy f a brok] on     
m>g91 "o ( ! conditions ( 8 contract is 
t he has ! "r to sell y\r /ock provid$ !
 m>ket price drops d[n to ! am\nt t y   
owe on ! /ock1 :]eas if y borr[ money on
 a home1 x is usually = a c]ta9 specifi$
 "t & ! l5d] _c sell y out until t "t   

expires4 ,h[ev]1 9 pr9ciple1 !re is v   
little diff]5ce betwe5 ! two            
transactions4  ,mo/ m>g9 trad]s d n put 
up suffici5t m>g94 ,if y put up only !  
m9imum m>g91 y\r brok] has ! "r to call 
on y = m m>g9 if ! price ( ! /ock       
decl9es at all4 ,unless y are fully     
prep>$ at all times to put up an        
additional m>g9 :5 call$ ^u1 y %\ld make
 small] pur*ases & put up a heavy m>g9  
:5 y buy4 ,! am\nt ( m>g9 dep5ds ^u !   
transaction1 b we advise f #cj to #ej1 &
 at times we advise n less ?an #ej m>g9 
on any pur*ase4 ,9 fact !re are times :5
 we advise n to buy /ocks on m>g9 at    
all4  ,^? :o wi% to be entirely free f  
worry %\ld buy /ocks :5 ! prices are v  
l[1 pay = !m 9 full1 get _! c]tificates1
 & put !m away 9 a safe deposit box4    
,h[ev]1 :5 /ocks are l[ ! risk 9 buy+ on
 a lib]al m>g9 is v small1 & !          
possibilities ( pr(it are s mu* great]1 
we d n see any objection to tak+        
advantage ( ?is me?od ( trad+4          
,,*apt] ,,xvii4  ,,%ort ,,sell+   ,by   

%ort sell+1 we mean sell+ a /ock t y d n
 possess1 ) ! int5tion ( buy+ x lat]4   
,%ort sell+ 9 g5]al bus9ess is v common1
 & we ?9k no?+ ( x4 ,manufactur]s       
frequ5tly sell goods t are n yet made1  
to be deliv]$ at "s future "t4 ,sell+   
/ocks %ort is a simil> transaction1     
except t 9 a majority ( cases deliv]y ( 
! /ock mu/ be made imm$iately4  ,h[ev]1 
y\r brok] c att5d to t by borr[+ ! /ock4
 ,z expla9$ 9 ! prec$+ *apt]1 :5 ! m>ket
 is active mo/ ( ! trad+ is done on     
m>g94 ,y\r brok] buys a /ock = y1 b z he
 has to pay = x 9 full1 x is cu/om>y =  
him to take x to 8 bank & borr[ money on
 x4 ,a bank usually l5ds ab\t #hj ( !   
m>ket value1 b if "s o!r brok] wants to 
borr[ ?is /ock1 he w l5d ! full value ( 
x4 ,if t p>ticul> /ock is v sc>ce & h>d 
to get1 ! l5d] ( ! /ock may get ! use ( 
! money )\t any int]e/4  ,!re=e1 !re is 
an advantage to ! brok] 9 l5d+ /ock1 & =
 t reason x is ne>ly always possible = a
 brok] to arrange deliv]y ( /ock = y if 
y wi% to sell %ort4 ,:5 y in/ruct him   

lat] on to buy ! /ock = y1 he w d s &   
deliv] x to ! brok] f :om he borr[$ x1  
:o w return ! money he receiv$ = x4  ,:5
 y sell /ock %ort & ! price goes up1 y w
 h to pay a high] price = x4 ,!re=e1 to 
protect himself aga9/ ! possibility (   
los+1 y\r brok] dem&s a paym5t f y j !  
same z y pay m>g9 :5 y buy /ock4  ,%ort 
sell+ is some?+ t we d n recomm5d v mu* 
to our cli5ts4 ,we ?9k x is n advisable 
to d any %ort sell+ z long z !re are    
good opportunities to make money by     
buy+2 b :5 all b>ga9s disappe>1 z !y d  
sometimes1 y mu/ ei!r sell %ort or else 
keep out ( ! m>ket entirely4 ,at su*    
times1 !re may be _m opportunities to   
make money by %ort sell+1 & we d n      
consid] t !re is any reason :y our      
cli5ts %\ld n take advantage ( !m4  ,(  
c\rse1 great c>e mu/ be ex]cis$ 9 sell+ 
/ocks %ort4 ,y might sell a /ock %ort   
because y "k ! m>ket price is #ajj      
great] ?an its real value1 b x is       
possible = manipulators to =ce x up a   
great deal high]2 & if y are n able to  

put up suffici5t money ) y\r brok] to   
protect him1 he w buy at a high price & 
y w lose ! money y h put up ) him4 ,9 "s
 in/ances1 /ocks are corn]$ & ! %ort    
int]e/s are =c$ to buy ! /ocks at prices
 t repres5t enorm\s losses4  ,x is a    
common ?+ to read ab\t ! %ort int]e/s 9 
c]ta9 /ocks4 ,all /ocks t are sold %ort 
mu/ be b\ght soon] or lat]1 & :5 t buy+ 
takes place1 x may affect ! m>ket v mu*4
 ,!re=e1 if x is kn[n t !re is a big    
%ort int]e/ 9 a c]ta9 /ock1 we %\ld     
expect ! /ock to sell at a high] price2 
b sometimes ! %ort int]e/s break ! m>ket
 & =ce ! price d[n1 especially :5 g5]al 
conditions are 9 _! favor4     ,,*apt]  
,,xviii4  ,,bucket ,,%ops   ,!re has be5
 s mu* publicity giv5 to bucket %ops1   
ne>ly ev]ybody is famili> ) ! t]m4 ,a   
brok] runs a bucket %op :5 he sells /ock
 to 8 cli5ts on m>g9 & ei!r nev] buys ! 
/ock = _! acc\nts1 or else sells x      
imm$iately aft] buy+ x4 ,! bucket %op   
simply gets y\r money on ! supposition t
 y are m likely to be wrong ?an to be   

"r4 ,( c\rse1 if y take ! bucket %op's  
advice y surely are likely to be wrong4 
,bucket %ops get _! cli5ts into ! v     
speculative /ocks1 :]e !re is likely to 
be a great deal ( fluctuation 9 ! price 
( ! /ocks1 :i* gives !m frequ5t         
opportunities to sell out _! cli5ts4    
,:5 ! m>ket is go+ d[n or :5 !re are _m 
movem5ts up & d[n 9 ! price ( /ocks1 !  
bucket %ops make money rapidly1 b       
occasionally !re is a long p]iod :5 !   
m>ket is work+ aga9/ ! bucket %ops1 &   
unless !y h a great deal ( money !y mu/ 
fail4  ,9 ,augu/1 #aiba1 ,/ock ,ex*ange 
/ocks />t$ to g up4 ,! upw>d movem5t 0 v
 sl[ b x 0 cont9ual4 ,up to ! "t ( ?is  
writ+1 !re has n be5 a ?ree-po9t        
reaction1 except 9 a few /ocks1 9 all ( 
t "t4 ,)\t a fluctuat+ m>ket1 ! bucket  
%op has no *ance to clean out its       
cu/om]s4 ,z a consequ5ce1 ! bucket %ops 
began to fail 9 ! e>ly "p ( #aibb1 & up 
to ! pres5t writ+ 7,april1 #aibb7 !re h 
be5 m ?an fifty ( ^! failures4 ,h[ev]1 x
 is n likely t all ! bucket %ops w be   

put out ( bus9ess4 ,! m successful ones 
are likely to wea!r ! /orm4  ,_m laws h 
be5 enact$ aga9/ bucket %ops1 & we      
believe "s way w be f\nd to get rid ( !m
 at "s future "t2 b we d n expect t to  
happ5 soon1 & we w>n our read]s n to get
 into _! h&s1 because if !y d n get y\r 
money away f y "o way !y are likely to  
get x "s o!r way4 ,! man :o runs a      
bucket %op usually has no consci5ce1 & x
 c]ta9ly is an un=tunate ?+ = anyone to 
get mix$ up ) su* a man4     ,,*apt]    
,,xix4  ,,*oos+ ,a ,,brok]   ,x is v    
important t y *oose a good brok]4 ,no   
matt] h[ c>eful y are1 x is possible to 
make a mi/ake4 ,h[ev]1 if y *oose a     
brok] :o is a memb] ( ! ,new ,york ,/ock
 ,ex*ange1 y h elim9at$ a v l>ge        
p]c5tage ( y\r *ances ( gett+ a wrong   
brok]4  ,occasionally a memb] ( ! ,/ock 
,ex*ange fails & once 9 a :ile "o is    
susp5d$ = runn+ a bucket %op or be+     
connect$ ) "o1 b ^! in/ances are v r>e  
comp>$ ) ! numb] ( brok]s :o get into   
tr\ble :o are n memb]s ( ! ,new ,york   

,/ock ,ex*ange4 ,! rules & regulations (
 ! ,/ock ,ex*ange protect y to a great  
ext5t4  ,:5 y buy /ock on m>g91 y leave 
y\r money 9 ! h&s ( a brok]1 & y %\ld "k
 t he is responsible4 ,no matt] :o y\r  
brok] is1 y %\ld get a report on him4   
,if y are a subscrib] to ,brad/reet's or
 ,dun's ,ag5cies1 get a report f !m4 ,if
 y are n a subscrib] to any m]cantile   
ag5cy1 y p]haps h a fri5d :o c get a    
report = y1 or y\r bank may get "o = y4 
,banks make a practice ( gett+ reports (
 ?is k9d = _! cli5ts4 ,:5 ask$ to d s1  
we s5d our cli5ts ! names ( brok]s :o   
are memb]s ( ! ,new ,york ,/ock         
,ex*ange1 b we pref] n to recomm5d any  
brok]4 ,( c\rse1 we _c gu>antee t a     
brok] is all "r4 ,we simply use our be/ 
judgm5t1 b1 z we said be=e1 y elim9ate a
 l>ge p]c5tage ( y\r *ances ( go+ wrong 
:5 y trade ) a brok] :o is a memb] ( !  
,new ,york ,/ock ,ex*ange4     ,,*apt]  
,,xx4  ,,puts ,,& ,,calls   ,a put is a 
negotiable contract giv+ ! hold] !      
privilege to sell a specifi$ numb] (    

%>es ( a c]ta9 /ock to ! mak] at a fix$ 
price1 )9 a specifi$ "t4 ,a call is !   
exact rev]se4 ,x is a negotiable        
contract giv+ ! hold] ! privilege to buy
 a specifi$ numb] ( %>es ( a c]ta9 /ock 
f ! mak] at a fix$ price1 )9 a specifi$ 
"t4 ,! price fix$ 9 a put or call is set
 away f ! m>ket price a c]ta9 numb] (   
po9ts1 dep5d+ ^u ! /ock & ! condition ( 
! m>ket4 ,:5 ! m>ket is /eady & n       
fluctuat+1 ! price fix$ is frequ5tly    
only two po9ts away1 b 9 a m active     
m>ket x is consid]ably m4  ,= in/ance1  
at ! pres5t "t1 ,u4 ,s4 ,/eel is sell+  
at ab\t #ie1 & y c buy a call on x at   
#ig or a put at #ic4 ,t is by pay+ a    
c]ta9 am\nt1 :i* at pres5t is #acg4ej1 y
 c h ! privilege ( buy+ #ajj %>es ( ,u4 
,s4 ,/eel at #ig1 )9 ?irty days ( ! date
 ( ! pur*ase ( y\r call4 ,if ,/eel %\ld 
g up to #aja y c\ld h y\r brok] buy x at
 #ig & sell x at ! m>ket1 & y w\ld make 
a pr(it ( f\r po9ts1 less ! co/ ( y\r   
call & commissions4  ,z a me?od ( op]at+
 9 ! /ock m>ket1 we d n recomm5d ! buy+ 

( puts & calls4 ,pr(essional speculators
 may be able to use !m to advantage     
sometimes1 b = ! outsid]1 :o is n 9     
close t\* ) ! m>ket1 !re is no?+ ab\t !m
 to recomm5d4  ,"h is "o po9t3 ! p :o   
sell puts & calls fix ! t]ms4 ,if !     
m>ket is irregul>1 !y w set ! po9t (    
buy+ or sell+ f> away f ! m>ket price4  
,^! p are %rewd trad]s & !y make ! t]ms 
9 _! own favor4 ,x is g5]ally said t    
ne>ly all ! buy]s ( puts & calls lose1 &
 t is our op9ion4 ,!re=e1 we advise y to
 leave !m alone4     ,,*apt] ,,xxi4     
,,/op ,,loss ,,ord]s   ,a /op-loss is an
 ord] to y\r brok] to sell y out if !   
m>ket sells d[n a c]ta9 numb] ( po9ts4  
,_m speculators place /op loss ord]s    
only two po9ts f ! m>ket price4 ,! idea 
is t :5 ! m>ket />ts to g d[n x is      
likely to cont9ue go+ d[n1 & by tak+ a  
two-po9t loss y may save a mu* great]   
loss4 ,x also c be appli$ to a %ort     
sale1 :5 y give y\r brok] in/ructions to
 buy 9 ! /ock = y if x goes up a c]ta9  
numb] ( po9ts4  ,we read s mu* 9 !      

f9ancial news ab\t /op-loss ord]s or    
m]ely /op ord]s1 :i* is ! same ?+1 !    
av]age read] is likely to get ! idea t x
 is some?+ he mu/ use = 8 own           
protection1 b x is our op9ion t x is    
some?+ t %\ld be us$ v seldom by ^? :o  
trade along ! broad l9es recomm5d$ by u4
 ,if y\r pur*ases 7 made 9 /ocks t 7 v  
*eap1 y %\ld cont9ue to hold !m 9 case (
 a reaction4 ,if y b\ght !m outright or 
on a sub/antial m>g91 y are n 9 dang]1 &
 y %\ld look ^u y\r loss m]ely z a pap] 
loss4 ,9 ! great majority ( cases1 y w  
be a great deal bett] (f to hold on to  
y\r /ocks ?an y w\ld be if y _h a       
/op-loss ord]4  ,a l>ge numb] ( /op-loss
 ord]s is a good ?+ = ! %ort int]e/s4   
,let u take ,u4 ,s4 ,/eel aga91 z an    
example4 ,suppose x is sell+ at #id & x 
is believ$ t !re are a l>ge numb] (     
/op-loss ord]s at #ib4 ,! %ort int]e/s  
may sell ! /ock heavily & =ce x d[n to  
#ib4 ,!n ! brok]s ) /op-loss ord]s w\ld 
beg9 to sell2 t w\ld =ce ! price d[n    
/ill l[]1 & ! %ort int]e/s c\ld buy 9 to

 cov] at ?is l[] price4  ,!re=e1 we     
believe t /op-loss ord]s are a bad ?+ &1
 z a rule1 d n recomm5d !m4  ,!re is "o 
in/ance :]e a /op-loss ord] c be us$ to 
advantage1 & t is ne> ! top ( a bull    
m>ket4 ,x is impossible to tell :5 !    
m>ket has rea*$ ! top4 ,if y sell out   
too soon1 y may lose a pr(it ( sev]al   
po9ts4 ,( c\rse1 x is bett] to d t ?an  
to take a *ance ( a l>ge loss4 ,9 t     
case1 y might in/ruct y\r brok] to place
 a /op-loss ord] at two or m po9ts bel[ 
! m>ket1 & keep mov+ x up z ! m>ket     
price moves up4 ,!n :5 ! reaction does  
come1 he w sell y out & prev5t y f los+ 
a l>ge "p ( y\r pr(it4 ,t is ab\t ! only
 in/ance :]e we recomm5d a /op-loss     
ord]1 b we d recomm5d x to our cli5ts   
sometimes1 al?\gh seldom4  ,if ! /ock y 
own is sell+ at m ?an #ajj we w\ld      
sugge/ t y make ! /op loss ord] at lea/ 
?ree po9ts f ! m>ket1 b = /ocks sell+   
bel[ #ajj1 a two-po9t /op-loss ord]     
might be us$4 ,h[ev]1 ! numb] ( po9ts   
%\ld be decid$ ^u 9 ea* p>ticul> case4  

,9 ! special in/ructions to our cli5ts1 
we tell !m :5 we ?9k !y c use a /op-loss
 ord] to advantage4     ,,"p ,,five     
,,conclud+ ,,*apt]s     ,,*apt] ,,xxii4 
,,! ,,desire ,,to ,,speculate   ,x is   
said t ! desire to speculate is v /rong 
9 ! ,am]ican p4 ,t is :y our c\ntry has 
made great] progress ?an any o!r c\ntry 
9 ! _w1 because progress is ! result (  
speculation4 ,we are n ref]r+ m]ely to  
/ock speculations1 b to ! ^w 9 its      
broade/ s5se4 ,e new und]tak+ is a      
speculation4  ,an inv5tor speculates on 
:at he is go+ to inv5t4 ,(t5 su*        
speculations result 9 losses1 because _m
 inv5tors1 or w\ld-be-inv5tors1 nev]    
accompli% v mu*4 ,!y sp5d _! money1 "t1 
& ef=ts1 & probably live ye>s 9 pov]ty1 
& !n if ! inv5tion is n pr(itable1 !y   
are heavy los]s4 ,_m inv5tors sp5d ! be/
 ye>s ( _! lives 9 pov]ty & nev] succe$4
 ,we he> a great deal ab\t "s ( ^? :o d 
succe$1 b v little ab\t ^? :o fail--^?  
^: speculations 7 unsuccessful--except  
:5 somebody accuses !m ( be+ crooks     

because !y solicit$ money = ! promotion 
( _! inv5tions & did n succe$4  ,x is ! 
same ?+ ) e new bus9ess4 ,x is purely a 
speculation4 ,x is a common say+ t #ie (
 comm]cial und]tak+s fail4 ,we d n "k t 
t /atem5t is correct1 b !re is no "q b t
 ! numb] ( failures is v great1 :i* %[s 
! great risk 9 go+ into a new und]tak+4 
,x is f> great] ?an ! risk involv$ 9    
/ock speculat+ :5 x is done 9 accordance
 ) ! advice giv5 9 ?is book4  ,yet1 !re 
w\ld be no progress )\t speculat+ ( ?is 
k9d4 ,if ^? ent]+ a new bus9ess w\ld    
make a c>eful /udy ( ! v5ture be=e ent]+
 x1 & w\ld ex]cise great] c>e & judgm5t 
9 conduct+ x1 ! numb] ( failures w\ld be
 v mu* less4 ,! same ?+ is true ( /ock  
speculat+4 ,! failures 9 /ock speculat+ 
are caus$ ma9ly by ignorance & gre$9ess4
 ,_m p :o w\ld be satisfi$ ) a fair     
return on _! money 9 a bus9ess          
ent]prise1 ?9k !y ought to make a #ajj  
pr(it 9 a few weeks 9 /ock speculation4 
,!re is some?+ ab\t /ock speculation t  
appeals to ! gre$9ess & pure gambl+     

in/9cts ( p4 ,9 ! *apt] on              
,manipulation1 we h told y h[ /ock      
prices are put up & d[n4 ,"s outsid]    
accid5tally buys "o ( ^! /ocks j be=e ! 
price />ts up4 ,9 ?irty days he has made
 sev]al hundr$ p] c5t pr(it4 ,he does n 
realize t x 0 purely accid5tal z f> z he
 0 conc]n$1 & he tries to d ! same ?+   
aga91 & loses all ( 8 pr(its & probably 
all ( 8 capital z well4  ,a /ock gambl] 
7we use ! ^w gambl] to ref] to a man :o 
op]ates ignorantly7 is wat*+ a l>ge     
numb] ( extremely speculative /ocks &   
sudd5ly notices "o t takes a big jump 9 
price4 ,!n he says to himself1 ,if ,i   
only _h b\ght t /ock on a t5-po9t m>g91 
,i w\ld h made sev]al hundr$ p] c5t     
pr(it4 ,he picks out ano!r /ock t "s "o 
tells him is go+ to d equally z well4   
,he buys z mu* ( x z he c & puts up all 
! money he has z a m>g91 b ! price      
doesn't g up4 ,p]haps ! price goes d[n &
 he loses 8 m>g92 b1 x may rema9 almo/  
/ation>y = a long p]iod1 sometimes = a  
ye> or m1 & dur+ all ( ?is "t1 ?is man  

is worry+ = fe> he w lose 8 money4 ,if  
he does n lose 8 money1 x is ti$ up = a 
long "t :]e he _c use x to take         
advantage ( real opportunities t come 8 
way4  ,x does n pay to take big risks4  
,t is true 9 /ock speculat+ ! same z 9  
any o!r und]tak+4 ,mo/ speculators are  
keep+ _! m9ds all ! "t on !             
possibilities ( pr(it & n ?9k+ ab\t !   
possibilities ( los+4  ,if y want to be 
successful 9 /ock speculat+1 !re is "o  
?+ y mu/ le>n to d1 & t is nev] to ?9k  
ab\t ! big pr(its y might h made if y _h
 b\ght su* & su* a /ock1 because !      
probabilities are y c\ld n h af=d$ to   
take ! necess>y risk 9 buy+ t /ock4  ,( 
c\rse1 aft] x is all ov]1 x may look to 
y z ?\gh ! buy+ ( t /ock 0 a sure ?+1 b 
! buy+ ( su* /ocks is nev] a sure ?+4 ,!
 risk always exi/s4 ,!re is an old say+1
 & we believe a v true "o1 t a man :o   
speculates ) ! idea ( gett+ ri* quickly 
loses all 8 money quickly1 b t ! man :o 
speculates ) ! idea ( mak+ a fair return
 on 8 money usually gets ri*4  ,9 our   

advice to our cli5ts1 we seldom recomm5d
 highly speculative /ocks1 because we   
consid] ! avoidance ( loss m important  
?an ! mak+ ( pr(its4 ,y may object to t 
/atem5t1 because y speculate to make    
pr(its1 & n = ! purpose ( avoid+ losses4
 ,nev]!less1 if y are c>eful 9 keep+ y\r
 losses d[n to a m9imum1 y\r pr(its are 
likely to be v lib]al4 ,any trad] :o    
trades = any great l5g? ( "t is likely  
to make l>ge pr(its sometimes1 & yet !  
majority ( !m h great] losses ?an       
pr(its4 ,x is said t m ?an #hj ( all    
m>g9 trad]s lose2 b we d n consid] t an 
argum5t aga9/ trad+ on m>g91 because ^! 
losses are mo/ly due to ignorance1      
gre$9ess1 & ! tak+ ( too great *ances4  
,d n suppress y\r desire to speculate4  
,all progress w\ld /op if p did n       
speculate4 ,b d n speculate 9 /ocks nor 
9 any?+ else )\t any k ( :at y are do+1 
& try to use z mu* good judgm5t & c>e z 
possible 9 all ( y\r transactions4 ,if y
 d n "k :at to d1 get advice f someone  
:o is suppos$ to "k & :o is n int]e/$ 9 

hav+ y buy or sell4 ,/ock speculat+ )   
safety is possible = ^? :o make ! ef=t  
to be guid$ by correct pr9ciples4       
,,*apt] ,,xxiii4  ,,two ,,k9ds ,,(      
,,trad]s   ,!re are two k9ds ( /ock     
trad]s4 ,"o k9d ne>ly always makes a    
pr(it1 & ! o!r w9s sometimes & loses o!r
 times1 b ev5tually loses all if he does
 n *ange 8 me?ods4 ,! fir/ k9d buys     
/ocks on lib]al m>g9 or outright & is n 
worri$ :5 ! m>ket goes aga9/ him1       
because he has good reasons = believ+ t 
prices ev5tually w g up4 ,if he does h  
to take a loss occasionally1 x is likely
 to be small comp>$ ) 8 pr(its4 ,!      
second k9d wants to make a big pr(it    
quickly1 & he buys /ocks t he ?9ks are  
go+ to make big ga9s 9 ! ne> future1 b 8
 selections are n bas$ ^u good judgm5t4 
,we might designate ^! two trad]s z !   
c>eful trad] & ! reckless trad]4  ,!    
c>eful trad] tries to get good advice on
 ! m>kets & ! values ( /ocks4 ,if !     
advice appe>s to him to be cons]vative1 
he is guid$ by x2 b if ! reckless trad] 

gets advice on /ocks1 he is n guid$ by x
 if x is ( a cons]vative nature4 ,if he 
does take advice1 x is likely to be f "o
 ( ^? unreliable m>ket tip/]s :o is v   
emphatic 9 8 /atem5ts ab\t :at ! m>ket  
is go+ to d4 ,! reckless trad] lets 8   
gre$ & desire = l>ge & quick pr(its     
influ5ce 8 judgm5t4  ,once 9 a :ile "o (
 ^! reckless trad]s realizes t he has   
made a great mi/ake1 & he wants to *ange
 8 attitude4 ,usually he is hold+ sev]al
 /ocks t %[ a big loss & he does n "k   
:at to d ) !m4 ,he reasons t !y are     
sell+ s l[ n[ !y surely w sell high] "s 
"t4 ,p]haps 8 reason+ is good & p]haps x
 is n4 ,! /ocks may h no *ance ( go+ up 
= a v long "t1 if at all1 b ev5 ?\gh !y 
h a good *ance to g up lat]1 x is bett] 
= him to sell !m n[ if he c put ! money 
d]iv$ f ! sale into some?+ else t has a 
bett] *ance to make a pr(it4  ,our      
advice is nev] to hesitate to sell &    
take a loss if y c put ! proce$s f !    
sale into some?+ bett] r ?an leave x 9 !
 /ock 9 :i* x is n[4 ,x is n s mu* a "q 

:e!r or n ! /ock y are hold+ w g up1 z x
 is :e!r or n y w\ld buy t p>ticul> /ock
 if y 7 j com+ into ! m>ket to make a   
pur*ase4 ,( c\rse !re is a loss (       
commissions :5 y sell a /ock & buy      
some?+ else1 & = t reason we sometimes  
recomm5d hold+ a /ock :5 we w\ld n      
recomm5d buy+ x4  ,if y h be5 a reckless
 trad] 9 ! pa/1 ! only ?+ = y to d is to
 *ange y\r me?ods & try to become a     
c>eful trad]4 ,x is mu* bett] to g to ! 
extreme 9 c>efulness & be satisfi$ ) v  
small pr(its ?an to take great risks4   
,,*apt] ,,xxiv4  ,,possibilities ,,(    
,,pr(it   ,:at are ! possibilities (    
pr(it 9 /ock speculation8 ,t "q is      
frequ5tly ask$ b x is difficult to      
answ]4 ,james ,r4 ,ke5e is quot$ z hav+ 
said3 ,_m m5 come to ,wall ,/reet to get
 ri*2 !y always g broke4 ,o!rs come to  
,wall ,/reet to op]ate intellig5tly =   
fair returns2 !y usually get ri*4  ,:ile
 x is true t ne>ly all /ock trad]s :o   
try to make unusually l>ge pr(its 9 a v 
%ort "t 9 /ock trad+ lose1 yet unusual  

pr(its c be made if y ex]cise good      
judgm5t & h pati5ce4  ,rog] ,w4 ,babson1
 9 8 book entitl$1 ,bus9ess ,b>omet]s1  
speaks ( ! possibilities ( pr(it 9      
language t w\ld be consid]$ greatly     
exagg]at$ if us$ by a promot]1 & yet he 
is extremely cons]vative 9 8 advice to  
trad]s4 ,he advises nev] to buy on m>g91
 nev] to sell %ort1 & /ay+ out ( ! m>ket
 entirely1 nei!r buy+ or sell+1 = a     
great "p ( ! "t4 ,"h is a quotation f 8 
book1 :i* foll[s a detail$ /atem5t ( an 
inve/m5t ( #b1ejj ov] a p]iod ( fifty   
ye>s3      ,! prec$+ example %[s t      
#b1ejj cons]vatively inve/$ 9     a few 
/&>d /ocks ab\t fifty ye>s ago w\ld     
today am\nt to     ov] #a1jjj1jjj4 ,^!  
are n only /rictly inve/m5t /ocks1 b    
are also /ocks :i* h fluctuat$          
comp>atively little 9 price4     ,?is1  
moreov] 0 possible by giv+ ord]s to buy 
or sell only     once 9 e ?ree or f\r   
ye>s4      ,if o!r /ocks :i* 7 n divid5d
 pay]s & :i* h %[n     great]           
fluctuations 7 pur*as$1 & advantage _h  

be5 tak5 (     ! int]m$iate             
fluctuations1 ! #b1ejj w\ld h am\nt$ to 
mu* l>g] figures4 ,by int]m$iate        
movem5ts is n meant !     weekly        
movem5ts :i* ! ord9>y pr(essional       
op]ator notes1 b     ! broad] movem5ts  
ext5d+ ov] _m mon?s & possibly a ye>    
or m4 ,nev]!less1 ^! broad] int]m$iate  
movem5ts %\ld     n be notic$ by a      
cons]vative inve/or1 z x is possible to 
correctly diagnose only ! movem5ts      
ext5d+ ov] long] p]iods4     ,_m brok]s 
believe t x is possible to disc]n also  
^!     int]m$iate movem5ts ( six or     
eight mon?s2 & if s1 !     foll[+       
results w\ld h be5 possible4            
#e1jjj inve/$ 9 ',/4 ,paul' 9 #ahgj w\ld
           am\nt to ov] #aj1jjj1jjj     
today4          #e1jjj inve/$ 9 ',union 
,pacific' 9 #ahgj           w\ld am\nt  
to ov] #ae1jjj1jjj today4               
#e1jjj inve/$ 9 ',c5tral ( ,new ,j]sey' 
w\ld am\nt to ov] #cj1jjj1jjj today4    
#e1jjj inve/$ 9 ',nor!rn ,pacific' w\ld 
am\nt to ov] #ej1jjj1jjj today4      ,^!

 figures are n bas$ on ! supposition t !
 inve/or     0 sell+ at ! top ( e rise  
or buy+ at ! bottom (     e decl9e1 b t 
! transactions 7 made at av]age 'high'  
& av]age 'l[' prices bas$ ^u ! /udy (   
te*nical     conditions4  ,if su* l>ge  
pr(its c be made by foll[+ ,babson's    
advice1 ( c\rse l>g] pr(its c be made by
 buy+ on cons]vative m>g9 & by sell+    
%ort :5 all ! conditions are 9 favor (  
x4  ,:ile !re are possibilities ( mak+  
extremely l>ge pr(its )\t tak+ great    
risks1 by ^? :o are pati5t & ex]cise    
good judgm5t1 "o %\ld be satisfi$ ) a   
small pr(it1 if x is ! result ( great   
c>e1 9 an ef=t to elim9ate risk4 ,(     
c\rse1 y c af=d to take a mu* great]    
risk ) a small "p ( y\r speculative fund
 ?an y c ) all ( x4 ,! less money y h ) 
:i* to speculate1 ! m c>eful y %\ld be4 
,"s p _c af=d to speculate at all4 ,!y  
%\ld inve/ _! funds 9 good1 safe        
inve/m5ts1 b ?is book is writt5 =       
speculators4  ,c>eful /ock speculation  
c>ri$ on regul>ly ov] a p]iod ( ye>s1 we

 believe br+s l>g] returns ?an almo/    
any?+ else1 & 9 ! next *apt] we tell y  
some?+ ab\t :]e to get in=mation to     
guide y4     ,,*apt] ,,xxv4  ,,m>ket    
,,in=mation   ,:]e d y get y\r m>ket    
in=mation8 ,p]haps mo/ p get x f ! daily
 pap]s4 ,:5 y look ov] ! f9ancial news (
 "o ( ! lead+ metropolitan pap]s & see  
h[ mu* !re is ( x1 y c get "s idea ( !  
enorm\s volume ( "w necess>y to get ?is 
matt] ready = ! press 9 a few h\rs4 ,!re
 is no "t to confirm reports4 ,x is     
necess>y t _m ( ! articles be writt5 f  
pure imag9ation1 bas$ on rumors4        
,weekly & mon?ly p]iodicals c be m      
accurate 9 _! in=mation1 b ev5 !y are n 
always dep5dable4 ,mu* ( ! f9ancial news
 publi%$ comes f ag5cies t are n        
reliable4 ,read :at ,h5ry ,clews says   
ab\t !m3      ,pr9cipally among ^!      
cat]]s are ! f9ancial news ag5cies     &
 ! morn+ ,wall ,/reet news %eet1 bo?    
specially devot$ to     ! speculative   
int]e/s t c5tre at ! ,/ock ,ex*ange4 ,! 
object ( ^! ag5cies is a useful "o2 b ! 

public h a     "r to expect t :5 !y     
subscribe = in=mation ^u :i*     imm5se 
transactions may be und]tak51 ! utmo/   
caution1 scrut9y     & fidelity %\ld be 
ex]cis$ 9 ! procurem5t & publication    
( ! news4 ,any?+ t falls %ort ( ?is is  
some?+ worse     ?an bad s]vice & bad   
fai? ) subscrib]s2 x is di%one/ &       
mis*iev\s4 ,& yet x _c be d5i$ t mu* ( !
 s-call$     news t rea*es ! public     
?r\gh ^! in/rum5talities mu/     come "u
 ?is condemnation4 ,! 'po9ts1' !        
'puffs1' ! al>ms     & ! can>ds1 put out
 expressly to deceive & mislead1 f9d a  
wide circulation ?r\gh ^! m$iums1 ) an  
ease :i* admits (     no possible       
ju/ification4 ,h[ f> ^! lapses are due  
to ! ha/e     insep>able f ! compilation
 ( news ( su* a "*1 h[     f> to a lack 
( prop] sift+ & caution1 h[ f> to less  
culpable reasons ,i d n pret5d to       
decide2 b ?is w be     admitt$ by e     
obs]v]1 t ! circulation ( pseudo news is
     ! frequ5t cause ( incalculable     
losses4 ,nor is x alone 9 !     matt] ( 

circulat+ false in=mation t ^! news     
v5d]s are     at fault4 ,! habit (      
retail+ 'po9ts' 9 ! int]e/ (            
cliques1 ! volunte]+ ( advice z to :at p
 %\ld buy &     :at !y %\ld sell1 !     
/rong speculative bias t runs ?r\gh     
_! editorial op9ions1 ^! ?+s appe> to   
mo/ p a     revolt+ abuse ( ! true      
functions ( j\rnalism4  ,( c\rse1 e     
trad] gets m>ket lett]s f "o or m       
brok]s4 ,^! are _m & v>i$ 9 "*4 ,"s ( !m
 are prep>$ ) great c>e & give reliable 
in=mation1 b y mu/ rememb] t a brok]'s  
m>ket lett] is publi%$ = ! purpose (    
gett+ bus9ess1 & bus9ess is creat$ only 
by ! cu/om]s' trad+4 ,!re=e x is to !   
brok]'s int]e/ to h 8 cu/om]s make _m   
trades in/ead ( a few trades4 ,9 8 book 
,bus9ess ,b>omet]s1 ,rog] ,w4 ,babson   
reproduces a lett] writt5 to him by !   
,manag] ( ! ,cu/om]s' ,room ( a ,/ock   
,ex*ange ,h\se4 ,we consid] ?is lett] s 
important to all trad]s1 we are tak+ !  
lib]ty to reproduce x "h3      ,he>+ on 
e h& ab\t ! =tunes made 9 ,wall ,/reet1 

,i     decid$1 ^u be+ graduat$ f        
college1 to devote myself to     f9ance4
 ,) ?is end 9 view1 ,i secur$ a position
 ) a     fir/-class ,new ,york ,/ock    
,ex*ange ,h\se1 f9ally becom+ !         
'h&%ak]' = ! firm2 t is1 'manag]' ( !   
cu/om]s'     room4 ,s ,i _h an          
exceptional opportunity to size up !    
/ock     bus9ess4 ,! *ief duties ( !    
manag] are to meet cu/om]s :5     !y    
visit ! (fice1 tell !m h[ ! m>ket is    
act+1 !     late/ news f ! news-tick]s &
 ! gossip ( ! ,/reet4 ,b     ! real     
duties are to get bus9ess = ! h\se4     
,once a mo/     peculi> man came to !   
(fice4 ,he 0 ab\t =ty-five ye>s (       
age1 dress$ 9 a fad$ cutaway coat1      
high-wat] tr\s]s1 & an     ,ea/ ,side   
l[-cr[n d]by hat4 ,9 a high squeaky     
voice he said t     he knew our         
,milwaukee ,h\se & w\ld l to op5 an     
acc\nt4 ,(     c\rse1 we 7 all smiles1 =
 "h 0 a new 'cu/om]4'      ,"o day :ile 
9 ,bo/on he call$ u up on ! long-di/ance
     telephone to make an inquiry ab\t !

 gra9 m>ket4 ,"o ( my     assi/ants1    
desir+ to get a commission out ( him1   
said ',we he>     t ,s\!rn ,pacific is  
go+ up2 y _h bett] get abo>d4' ,he      
said ',all "r2 buy me a hundr$ at !     
m>ket4' ,! /ock 0     b\ght1 b he nev]  
saw daylight on 8 pur*ase1 = ! m>ket    
decl9$ /eadily aft]w>d & by ! "t he got 
back f ,bo/on     x %[$ a heavy loss4 ,!
 man :o advis$ its pur*ase _h no        
special k ab\t ! /ock1 b simply took a  
*ance1 kn[+     t ! m>ket _h only two   
ways to g1 & x might g up1 9     :i*    
case1 besides mak+ tw5ty-five doll>s 9  
commissions =     ! h\se1 he w\ld be    
patt$ on ! back = 8 good judgm5t4 ,if   
! m>ket w5t d[n1 z x did1 he w\ld /ill  
make tw5ty-five     doll>s4      ,i     
v5ture to say t #ii ( ! speculations on 
! ,new ,york ,/ock     ,ex*ange are bas$
 on su* s-call$ 'tips'4 ,! manag] has   
got to     get ! bus9ess to keep 8      
position & sal>y1 & ?is c only     be   
done by 't\t+' p into ! m>ket4 ,s he    
draws on !     'dope' %eets ( !         

pr(essional tip/]s & 8 own feel+s1 &    
gives positive in=mation to ! bleat+    
lamb t ! ,/&>d     ,oil is putt+ up ,/4 
,paul1 or t c]ta9 influ5tial bank]s are 
'bull+' ,union ,pacific4 ,! lamb buys ! 
/ock1 ! brok] gets     ! commission1 &  
!n ! lamb worries 8 he>t out z he sees  
8 "o-?\s&-doll> m>g9 jump+ ar\nd 9      
value4 ,n[ x has     increas$ to elev5  
hundr$ doll>s1 !n decl9$ to n9e hundr$  
& fifty doll>s1 !n n9e hundr$ doll>s1   
eight hundr$ doll>s1     !n back to     
eight hundr$ & fifty doll>s & !n x takes
 !     'toboggan' to ?ree hundr$ doll>s 
^u :i* ! brok] calls =     m>g9s1 &     
sells ! cu/om] out if !y are n =?com+1 !
     :ole speculation be+ bas$ on !     
manag]'s 'feel+' t /ocks     ought to g 
up4      ,m5 ( affairs :o w n play pok] 
at home1 & are %ock$ at     ! m5tion (  
f>o & r\lette1 :i* any old-tim] w tell y
     are easi] to beat ?an ! /ock m>ket1
 ?9k !y are us+     bus9ess judgm5t :5  
!y try to make money on /ock m>ket      
'tips'4 ,anyone ) common s5se c see t a 

#aj m>g9 has no     m *ance 9 an active 
m>ket ?an a bru% dam 9 a ,john/[n       
flood4 ,"o ( ! causes = ?is k9d (       
speculat+ on a m>g9     is t a brok]'s  
commission is only #ab-a_/b c5ts p] %>e 
& x     does n pay to d small-lot       
bus9ess4 ,! "o-?\s&-doll>     m>g9 w\ld 
only buy t5 %>es outright & net ! brok] 
b     #a4be = buy+ & #a4be = sell+1     
:]eas t same am\nt z     m>g9 on "o     
hundr$ %>es yields ! brok] #ab4ej ea*   
way     besides int]e/ on ! balance1 !  
net result be+ t = any     giv5 am\nt ( 
money a speculator on #aj m>g9          
multiplies 8     pr(its by t5 & 8 losses
 by t5 ov] ^? t w\ld occur     7 he to  
buy ! /ock outright & take x home4 ,!   
brok] on     8 side multiplies 8        
commission by t5 ov] :at he w\ld receive
     7 he to d an inve/m5t bus9ess4  ,f 
! above lett] y get an idea ( ! attitude
 ( an employee ( ! av]age brok]'s (fice4
 ,he w\ld n be consid]$ loyal to 8      
employ] if he _h a diff]5t attitude4 ,:5
 an attitude l ?is influ5ces ! brok]'s  

m>ket lett]s1 !y are n reliable4  ,y may
 ask :e!r !re is any reliable in=mation 
ab\t ! m>ket4 ,yes1 !re is4 ,!re are    
sev]al l>ge organizations t make a /udy 
( fundam5tal /ati/ics & /ati/ics (      
diff]5t companies & give in=mation to _!
 subscrib]s bas$ ^u ?is k4 ,we believe t
 is ! only k9d ( in=mation t is wor? v  
mu* to a trad]1 except ! /ati/ical      
in=mation--! numb] ( %>es sold & !      
prices at :i* !y are sold--he gets f 8  
daily or weekly pap]s4 ,"s ( ! pr9cipal 
organizations ( ?is k9d are z foll[s3   
,/&>d ,/ati/ics ,company1 ,inc4         
,babson's ,/ati/ical ,organization4     
,! ,brookmire ,economic ,s]vice4        
,h>v>d ,economic ,s]vice4     ,poor's   
,inve/m5t ,s]vice4     ,moody's         
,inve/ors ,s]vice4     ,ri*>d ,d4       
,wyck(f ,analytical ,/aff4  ,! above are
 ! pr9cipal organizations ( ?is k9d4    
,subscriptions to _! s]vice co/ f #he to
 #ajjj a ye>4 ,9 addition to ^! !re are 
a few o!r organizations besides our own 
& individuals giv+ a some:at simil>     

s]vice1 b we "k ( none t gives su* a    
s]vice at z l[ a price z ours4  ,y %\ld 
n confuse ! s]vice giv5 by ! above      
organizations ) t giv5 by _m            
organizations & individuals :o attempt  
to tell y :at ! m>ket is go+ to d f day 
to day4 ,9 o!r words1 !y give 'tips' on 
! m>ket4 ,!re are a numb] :o issue daily
 m>ket lett]s ( ?is k9d & *>ge f #aj to 
#be a mon? = _! s]vice1 b x is a l9e (  
s]vice t we d n recomm5d at all1 because
 we consid] t y w\ld be tak+ a v great  
risk if y foll[$ advice ( t k9d4 ,y     
might make enorm\sly l>ge pr(its        
occasionally1 b y w\ld also h frequ5t   
losses1 & :5 ! losses did come !y might 
be great] ?an all ! previ\s pr(its4 ,we 
want y to und]/& t t k9d ( advice is    
entirely diff]5t f :at we are recomm5d+4
     ,,*apt] ,,xxvi4  ,,successful      
,,speculation   ,success 9 /ock         
speculation dep5ds ^u a few ?+s t are v 
simple4  ,if y "k :at to buy1 :5 to buy1
 & :5 to sell1 & w act 9 accordance ) t 
k1 y\r success is assur$4 ,y may ?9k x  

is impossible to "k ^! ?+s1 b x is n s  
difficult z x is suppos$ to be4  ,_m p  
buy /ocks at ! wrong "t1 & mo/ ( ^? :o d
 buy !m at ! "r "t1 buy ! wrong /ocks4  
,"r n[ 7e>ly 9 ,april1 #aibb7 is buy+ "t
 9 ! /ock m>ket1 & x is possible t ?is  
buy+ "t may cont9ue--) "s               
int]ruptions--= ano!r ye> or two1 or ev5
 long]4  ,x is m difficult1 h[ev]1 to   
tell y ,,:at /ocks to buy4 ,fir/ ( all1 
we advise y aga9/ buy+ /ocks t are put  
up to high prices by manipulation4 ,(   
c\rse1 if y get 9 "o ( ^? /ocks "r & get
 out "r1 y\r pr(its are v l>ge1 b y take
 a great risk1 & ^? :o w9 once or twice 
by ?is me?od are almo/ sure to lose     
ev]y?+ soon] or lat] 9 an ef=t to d !   
same ?+ aga94 ,y\r *ances are n mu*     
bett] ?an if y gambl$ at ,monte ,c>lo4  
,! *ances 9 buy+ manipulat$ /ocks are   
inv>iably aga9/ ! outsid]4  ,!re always 
is s mu* publicity ab\t ^! v active     
speculative /ocks t ! public is attract$
 t[>ds !m4 ,newspap]s & brok]s' m>ket   
lett]s give altoge!r too mu* space to   

!m4 ,su* /ocks sell f> too high1 & :5 ! 
break comes1 x br+s ru9\s losses to _m  
p4  ,on ! o!r h&1 by foll[+ a           
cons]vative c\rse1 y really h a *ance to
 make l>ge pr(its ) a m9imum risk4 ,we  
are giv+ bel[ sixte5 /ocks t we         
recomm5d$ 9 our ,advisory ,lett] (      
,febru>y #ad?1 #aibb1 ) ! approximate   
prices ( !m !n & ! approximate prices on
 ,m>* #ca/4#b ,9 arriv+ at ^! prices1 we
 took ! clos+ prices on ,febru>y #ac? & 
on ,m>* #ca/1 & omitt$ ! fractions4 ,we 
recomm5d$ only sixte5 /ocks on t date1 &
 y w see t e "o ( !m made sub/antial    
ga9s4                                   
,approximate     ,approximate           
,price           ,price          ,/ock  
,feb4 #ad1 #aibb   ,m>4 #ca1 #aibb      
,pr(it   ,c4 ,r4 ,i4  ,p4 pfd 7#f7      
#ge              #gi           #d  ,c4  
,r4 ,i4  ,p4 pfd 7#g7                #hh
              #ic           #e  ,new    
,york ,c5tral                     #gf   
#hh          #ab  ,pacific ,gas         
,electric               #fd             

#fh           #d  ,consolidat$ ,gas     
#ij             #aji          #ai       
,am]ican ,telephone  ,telegraph         
#aah             #aba           #c      
,g5]al ,motors ,deb4 7#f7               
#gj              #gh           #h       
,g5]al ,motors ,deb4 7#g7               
#ha              #ia          #aj  ,u4  
,s4 ,/eel                          #hg  
#ie           #h  ,dome ,m9es           
#bc              #bf           #c       
,lacl$e ,gas                            
#ej              #fc          #ac       
,miss\ri ,pacific ,pfd                  
#dh              #ed           #f  ,c4  
,r4 ,i4  ,p4 ,common                 #cc
              #dj           #g  ,am4    
,smel4  ,ref9+                 #de      
#ec           #h  ,anaconda             
#dg              #ea           #d  ,erie
 ,common                          #aj   
#aa           #a                        
----            ----         ---  ,total
                              #ajje     
#aabj         #aae  ,let u suppose y    

b\ght t5 %>es ( ea* ( ^! /ocks on       
,febru>y #ad?4 ,!y w\ld h co/ y #aj1jej4
 ,we recomm5d$ #cj m>g9 on ! fir/ t51   
all ( :i* 7 divid5d pay]s2 & #ej m>g9 on
 ! la/ six1 because !y 7 m speculative &
 w\ld h be5 m affect$ by a reaction 9 ! 
m>ket4 ,to buy t5 %>es ( ea* on t m>g9  
basis w\ld h requir$ a little less ?an  
#c1ejj1 b let u suppose y put up #c1ejj4
 ,aft] all[+ = buy+ & sell+ commissions 
& int]e/ on ! balance ( #f1eej1 b cr$it+
 y ) divid5ds paid1 y\r pr(it w\ld be   
ab\t #cb or at ! rate ( ab\t #bej p]    
annum4  ,( c\rse1 we d n claim t by     
foll[+ ! cons]vative c\rse we advise1 y 
always w make su* l>ge pr(its1 al?\gh y 
might d j z well z t if y took advantage
 ( "s ( ! opportunities s frequ5tly to  
be f\nd 9 ! m>ket2 b ke5 discrim9ation 9
 :at y buy always is necess>y4 ,h[ev]1  
let u suppose y made annual pr(its (    
"o-fif? ! above am\nt1 or #ej1 :i* is   
easily possible )\t tak+ ! risks t are  
usually tak5 9 /ock speculat+4 ,if y    
inve/$ #ajjj & made #ej pr(it p] annum1 

re9ve/+ y\r pr(it at ! same rate ea* ye>
 = tw5ty ye>s1 y w\ld h m ?an ,,?ree    
,,million ,,doll>s4  ,:5 !re is a       
possibility ( mak+ su* enorm\s pr(its z 
t by foll[+ c>eful me?ods1 surely !re is
 no argum5t 9 favor ( tak+ ! extreme    
risks t p d take 9 buy+ ! highly        
speculative /ocks1 ! prices ( :i* are   
put up = ! purpose ( unload+ !m on !    
public4 ,t5 ( ! /ocks we select$ 9 !    
above li/ 7 divid5d pay]s1 & :ile ! o!r 
six 7 n1 !y 7 consid]$ wor? mu* m ?an _!
 m>ket prices1 & ! li/ z a :ole 0 conc$$
 by cons]vative p z a safe "o to buy4   
,v frequ5tly we are able to recomm5d a  
li/ ( /ocks t we believe w yield equally
 l>ge pr(its1 b ! /ocks y %\ld buy are n
 ! ones t are ! mo/ active nor ! ones t 
are m5tion$ mo/ frequ5tly 9 ! f9ancial  
news & brok]s' m>ket lett]s4 ,! /ocks t 
mo/ p buy are usually ! v /ocks t %\ld  
be left alone4 ,! /ocks y %\ld buy are  
usually ! ones y he> v little ab\t4     
,!re is only "o ,,safe way to speculate1
 & t is to be guid$ by a k ( !          

fundam5tal conditions ( ea* /ock & also 
( ! indu/ries !y repres5t4 ,!re are     
sev]al l>ge organizations giv+ in=mation
 ( ?is k9d1 & ^? :o h be5 guid$ by !    
fundam5tal /ati/ics issu$ by !m1 almo/  
inv>iably h made money 9 /ock speculat+4
 ,! value ( t k9d ( s]vice has be5      
?or\ghly demon/rat$ beyond any "q4      
,h[ev]1 a subscription = ! s]vice ( mo/ 
( ^! organizations co/s m ?an ! av]age  
p]son c af=d to pay4 ,usually x is      
any:]e f #ajj to #a1jjj a ye>4  ,we are 
giv+ a s]vice = ! purpose ( guid+ our   
cli5ts to successful speculation = a fee
 ( only #be a ye>1 #ae = six mon?s1 or  
#aj = ?ree mon?s4 ,= ?is fee we tell y  
:at /ocks to buy1 :5 to buy1 & :5 to    
sell4 ,we s5d y our recomm5dations at   
lea/ twice a mon?1 b s5d y additional   
,advisory ,lett]s & li/s (t5] if        
conditions make x necess>y4 ,y also h ! 
privilege ( unlimit$ p]sonal            
correspond5ce reg>d+ y\r m>ket problems4
 ,! co/ ( our ,s]vice is v small1 comp>$
 ) :at o!r reliable organizations *>ge4 

,our ,s]vice is bas$ on ! pr9ciples     
exp\nd$ 9 ?is book4 ,we try to select   
/ocks hav+ ! greate/ possibilities (    
pr(it ) m9imum risk1 & ! sample ( our   
,s]vice giv5 9 ?is *apt] is pro( ( our  
success4    ,,national ,,bureau ,,(     
,,f9ancial          ,,in=mation   #cie  
,broadway1 ,new ,york ,city             
,,footnotes3  #b ,we did n advise ! sale
 ( ^! /ocks on ,m>* #ca/1 b ! au?or     
figur$ pr(its to t date because ?is book
 0 writt5 %ortly aft] t4 ,if ^! /ocks _h
 be5 b\ght on or ab\t ,febru>y #ad?1 on 
! m>g9 basis sugge/$ by u1 & sold six   
mon?s lat]1 ! pr(it w\ld h be5 m ?an    
#fj1 or #abj ye>ly4