Word: margining
(lookup in dictionary)
(lookup stats)
Dates: all
Sort By: most recent first
(reverse)
...Wall Street, the Reserve Board last week made a gesture in the opposite direction. In deference to amateur economists who believe that short selling by wolves of Wall Street is responsible for all recessions in stock prices,* the Board, for the first time in its history, imposed a margin requirement on short selling- 50%. This gave the impression that bears were to be regulated more strictly than bulls, who are now permitted 40% margins...
Heretofore it has been considered beyond the Reserve Board's legal powers to restrict short sales and that job has been left to the stock exchanges. The New York Exchange has long imposed a margin requirement of ten points on any stock sold short. For a stock selling at $1 this meant not 50% but 1,000% margin. For the average priced stock it meant about 35%, but this was only a minimum and many a brokerage house upped it as high as 50% in special cases. On the 7,000,000-share "black Tuesday" fortnight...
...reduced margin on stock purchases was no empty gesture, however. Although it was an open admission that the Government was worried over the state of the market and could, therefore, be considered deflationary, on the day after the announcement stocks vaulted up. General Motors opened with the sale of 5,000 shares up $2.75 to $43.63; Chrysler with 10,000 up $5.25 to $74.75; U. S. Steel with 15,000 up $4.25 to $62.63. Prices presently lagged but closed in a final sprint which left the Dow-Jones industrial averages up nearly three points for the day. By week...
President John J. Pelley of the Association of American Railroads summarized the current gloom of railroaders by further plain speaking: "The margin between income and operating expenses has been so thin that the railroads face a real crisis. Because there is no other way to meet this crisis than to make a general increase in rates and fares, the railroads will ask the commission to expedite consideration of the matter. Facing the railroads today is an increase in operating costs totaling $663,303,000 annually since early in 1933. Of that amount, more than one-half results from new taxes...
...order was that both mines and railroads fell into the hands of Morgan & friends. And Mr. Maudlin reported: "Under such a situation they can forego profits on the production of anthracite and recoup them in high freight rates, thereby forcing the independent companies . . . to operate on a very close margin . . . and preventing them from providing any real competition...