The Project Gutenberg EBook of Profitable Stock Exchange Investments, by 
Henry Voorce Brandenburg

This eBook is for the use of anyone anywhere at no cost and with
almost no restrictions whatsoever.  You may copy it, give it away or
re-use it under the terms of the Project Gutenberg License included
with this eBook or online at www.gutenberg.org


Title: Profitable Stock Exchange Investments

Author: Henry Voorce Brandenburg

Release Date: October 27, 2013 [EBook #44052]

Language: English

Character set encoding: UTF-8

*** START OF THIS PROJECT GUTENBERG EBOOK STOCK EXCHANGE INVESTMENTS ***




Produced by The Online Distributed Proofreading Team at
http://www.pgdp.net (This file was produced from images
generously made available by The Internet Archive)

Profitable
Stock Exchange
Investments

PRINCIPAL AND INTEREST
GUARANTEED

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 5½. 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

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 3½ 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 THIS PROJECT GUTENBERG EBOOK STOCK EXCHANGE INVESTMENTS ***

***** This file should be named 44052-h.htm or 44052-h.zip *****
This and all associated files of various formats will be found in:
        http://www.gutenberg.org/4/4/0/5/44052/

Produced by The Online Distributed Proofreading Team at
http://www.pgdp.net (This file was produced from images
generously made available by The Internet Archive)


Updated editions will replace the previous one--the old editions
will be renamed.

Creating the works from public domain print editions means that no
one owns a United States copyright in these works, so the Foundation
(and you!) can copy and distribute it in the United States without
permission and without paying copyright royalties.  Special rules,
set forth in the General Terms of Use part of this license, apply to
copying and distributing Project Gutenberg-tm electronic works to
protect the PROJECT GUTENBERG-tm concept and trademark.  Project
Gutenberg is a registered trademark, and may not be used if you
charge for the eBooks, unless you receive specific permission.  If you
do not charge anything for copies of this eBook, complying with the
rules is very easy.  You may use this eBook for nearly any purpose
such as creation of derivative works, reports, performances and
research.  They may be modified and printed and given away--you may do
practically ANYTHING with public domain eBooks.  Redistribution is
subject to the trademark license, especially commercial
redistribution.



*** START: FULL LICENSE ***

THE FULL PROJECT GUTENBERG LICENSE
PLEASE READ THIS BEFORE YOU DISTRIBUTE OR USE THIS WORK

To protect the Project Gutenberg-tm mission of promoting the free
distribution of electronic works, by using or distributing this work
(or any other work associated in any way with the phrase "Project
Gutenberg"), you agree to comply with all the terms of the Full Project
Gutenberg-tm License available with this file or online at
  www.gutenberg.org/license.


Section 1.  General Terms of Use and Redistributing Project Gutenberg-tm
electronic works

1.A.  By reading or using any part of this Project Gutenberg-tm
electronic work, you indicate that you have read, understand, agree to
and accept all the terms of this license and intellectual property
(trademark/copyright) agreement.  If you do not agree to abide by all
the terms of this agreement, you must cease using and return or destroy
all copies of Project Gutenberg-tm electronic works in your possession.
If you paid a fee for obtaining a copy of or access to a Project
Gutenberg-tm electronic work and you do not agree to be bound by the
terms of this agreement, you may obtain a refund from the person or
entity to whom you paid the fee as set forth in paragraph 1.E.8.

1.B.  "Project Gutenberg" is a registered trademark.  It may only be
used on or associated in any way with an electronic work by people who
agree to be bound by the terms of this agreement.  There are a few
things that you can do with most Project Gutenberg-tm electronic works
even without complying with the full terms of this agreement.  See
paragraph 1.C below.  There are a lot of things you can do with Project
Gutenberg-tm electronic works if you follow the terms of this agreement
and help preserve free future access to Project Gutenberg-tm electronic
works.  See paragraph 1.E below.

1.C.  The Project Gutenberg Literary Archive Foundation ("the Foundation"
or PGLAF), owns a compilation copyright in the collection of Project
Gutenberg-tm electronic works.  Nearly all the individual works in the
collection are in the public domain in the United States.  If an
individual work is in the public domain in the United States and you are
located in the United States, we do not claim a right to prevent you from
copying, distributing, performing, displaying or creating derivative
works based on the work as long as all references to Project Gutenberg
are removed.  Of course, we hope that you will support the Project
Gutenberg-tm mission of promoting free access to electronic works by
freely sharing Project Gutenberg-tm works in compliance with the terms of
this agreement for keeping the Project Gutenberg-tm name associated with
the work.  You can easily comply with the terms of this agreement by
keeping this work in the same format with its attached full Project
Gutenberg-tm License when you share it without charge with others.

1.D.  The copyright laws of the place where you are located also govern
what you can do with this work.  Copyright laws in most countries are in
a constant state of change.  If you are outside the United States, check
the laws of your country in addition to the terms of this agreement
before downloading, copying, displaying, performing, distributing or
creating derivative works based on this work or any other Project
Gutenberg-tm work.  The Foundation makes no representations concerning
the copyright status of any work in any country outside the United
States.

1.E.  Unless you have removed all references to Project Gutenberg:

1.E.1.  The following sentence, with active links to, or other immediate
access to, the full Project Gutenberg-tm License must appear prominently
whenever any copy of a Project Gutenberg-tm work (any work on which the
phrase "Project Gutenberg" appears, or with which the phrase "Project
Gutenberg" is associated) is accessed, displayed, performed, viewed,
copied or distributed:

This eBook is for the use of anyone anywhere at no cost and with
almost no restrictions whatsoever.  You may copy it, give it away or
re-use it under the terms of the Project Gutenberg License included
with this eBook or online at www.gutenberg.org

1.E.2.  If an individual Project Gutenberg-tm electronic work is derived
from the public domain (does not contain a notice indicating that it is
posted with permission of the copyright holder), the work can be copied
and distributed to anyone in the United States without paying any fees
or charges.  If you are redistributing or providing access to a work
with the phrase "Project Gutenberg" associated with or appearing on the
work, you must comply either with the requirements of paragraphs 1.E.1
through 1.E.7 or obtain permission for the use of the work and the
Project Gutenberg-tm trademark as set forth in paragraphs 1.E.8 or
1.E.9.

1.E.3.  If an individual Project Gutenberg-tm electronic work is posted
with the permission of the copyright holder, your use and distribution
must comply with both paragraphs 1.E.1 through 1.E.7 and any additional
terms imposed by the copyright holder.  Additional terms will be linked
to the Project Gutenberg-tm License for all works posted with the
permission of the copyright holder found at the beginning of this work.

1.E.4.  Do not unlink or detach or remove the full Project Gutenberg-tm
License terms from this work, or any files containing a part of this
work or any other work associated with Project Gutenberg-tm.

1.E.5.  Do not copy, display, perform, distribute or redistribute this
electronic work, or any part of this electronic work, without
prominently displaying the sentence set forth in paragraph 1.E.1 with
active links or immediate access to the full terms of the Project
Gutenberg-tm License.

1.E.6.  You may convert to and distribute this work in any binary,
compressed, marked up, nonproprietary or proprietary form, including any
word processing or hypertext form.  However, if you provide access to or
distribute copies of a Project Gutenberg-tm work in a format other than
"Plain Vanilla ASCII" or other format used in the official version
posted on the official Project Gutenberg-tm web site (www.gutenberg.org),
you must, at no additional cost, fee or expense to the user, provide a
copy, a means of exporting a copy, or a means of obtaining a copy upon
request, of the work in its original "Plain Vanilla ASCII" or other
form.  Any alternate format must include the full Project Gutenberg-tm
License as specified in paragraph 1.E.1.

1.E.7.  Do not charge a fee for access to, viewing, displaying,
performing, copying or distributing any Project Gutenberg-tm works
unless you comply with paragraph 1.E.8 or 1.E.9.

1.E.8.  You may charge a reasonable fee for copies of or providing
access to or distributing Project Gutenberg-tm electronic works provided
that

- You pay a royalty fee of 20% of the gross profits you derive from
     the use of Project Gutenberg-tm works calculated using the method
     you already use to calculate your applicable taxes.  The fee is
     owed to the owner of the Project Gutenberg-tm trademark, but he
     has agreed to donate royalties under this paragraph to the
     Project Gutenberg Literary Archive Foundation.  Royalty payments
     must be paid within 60 days following each date on which you
     prepare (or are legally required to prepare) your periodic tax
     returns.  Royalty payments should be clearly marked as such and
     sent to the Project Gutenberg Literary Archive Foundation at the
     address specified in Section 4, "Information about donations to
     the Project Gutenberg Literary Archive Foundation."

- You provide a full refund of any money paid by a user who notifies
     you in writing (or by e-mail) within 30 days of receipt that s/he
     does not agree to the terms of the full Project Gutenberg-tm
     License.  You must require such a user to return or
     destroy all copies of the works possessed in a physical medium
     and discontinue all use of and all access to other copies of
     Project Gutenberg-tm works.

- You provide, in accordance with paragraph 1.F.3, a full refund of any
     money paid for a work or a replacement copy, if a defect in the
     electronic work is discovered and reported to you within 90 days
     of receipt of the work.

- You comply with all other terms of this agreement for free
     distribution of Project Gutenberg-tm works.

1.E.9.  If you wish to charge a fee or distribute a Project Gutenberg-tm
electronic work or group of works on different terms than are set
forth in this agreement, you must obtain permission in writing from
both the Project Gutenberg Literary Archive Foundation and Michael
Hart, the owner of the Project Gutenberg-tm trademark.  Contact the
Foundation as set forth in Section 3 below.

1.F.

1.F.1.  Project Gutenberg volunteers and employees expend considerable
effort to identify, do copyright research on, transcribe and proofread
public domain works in creating the Project Gutenberg-tm
collection.  Despite these efforts, Project Gutenberg-tm electronic
works, and the medium on which they may be stored, may contain
"Defects," such as, but not limited to, incomplete, inaccurate or
corrupt data, transcription errors, a copyright or other intellectual
property infringement, a defective or damaged disk or other medium, a
computer virus, or computer codes that damage or cannot be read by
your equipment.

1.F.2.  LIMITED WARRANTY, DISCLAIMER OF DAMAGES - Except for the "Right
of Replacement or Refund" described in paragraph 1.F.3, the Project
Gutenberg Literary Archive Foundation, the owner of the Project
Gutenberg-tm trademark, and any other party distributing a Project
Gutenberg-tm electronic work under this agreement, disclaim all
liability to you for damages, costs and expenses, including legal
fees.  YOU AGREE THAT YOU HAVE NO REMEDIES FOR NEGLIGENCE, STRICT
LIABILITY, BREACH OF WARRANTY OR BREACH OF CONTRACT EXCEPT THOSE
PROVIDED IN PARAGRAPH 1.F.3.  YOU AGREE THAT THE FOUNDATION, THE
TRADEMARK OWNER, AND ANY DISTRIBUTOR UNDER THIS AGREEMENT WILL NOT BE
LIABLE TO YOU FOR ACTUAL, DIRECT, INDIRECT, CONSEQUENTIAL, PUNITIVE OR
INCIDENTAL DAMAGES EVEN IF YOU GIVE NOTICE OF THE POSSIBILITY OF SUCH
DAMAGE.

1.F.3.  LIMITED RIGHT OF REPLACEMENT OR REFUND - If you discover a
defect in this electronic work within 90 days of receiving it, you can
receive a refund of the money (if any) you paid for it by sending a
written explanation to the person you received the work from.  If you
received the work on a physical medium, you must return the medium with
your written explanation.  The person or entity that provided you with
the defective work may elect to provide a replacement copy in lieu of a
refund.  If you received the work electronically, the person or entity
providing it to you may choose to give you a second opportunity to
receive the work electronically in lieu of a refund.  If the second copy
is also defective, you may demand a refund in writing without further
opportunities to fix the problem.

1.F.4.  Except for the limited right of replacement or refund set forth
in paragraph 1.F.3, this work is provided to you 'AS-IS', WITH NO OTHER
WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO
WARRANTIES OF MERCHANTABILITY OR FITNESS FOR ANY PURPOSE.

1.F.5.  Some states do not allow disclaimers of certain implied
warranties or the exclusion or limitation of certain types of damages.
If any disclaimer or limitation set forth in this agreement violates the
law of the state applicable to this agreement, the agreement shall be
interpreted to make the maximum disclaimer or limitation permitted by
the applicable state law.  The invalidity or unenforceability of any
provision of this agreement shall not void the remaining provisions.

1.F.6.  INDEMNITY - You agree to indemnify and hold the Foundation, the
trademark owner, any agent or employee of the Foundation, anyone
providing copies of Project Gutenberg-tm electronic works in accordance
with this agreement, and any volunteers associated with the production,
promotion and distribution of Project Gutenberg-tm electronic works,
harmless from all liability, costs and expenses, including legal fees,
that arise directly or indirectly from any of the following which you do
or cause to occur: (a) distribution of this or any Project Gutenberg-tm
work, (b) alteration, modification, or additions or deletions to any
Project Gutenberg-tm work, and (c) any Defect you cause.


Section  2.  Information about the Mission of Project Gutenberg-tm

Project Gutenberg-tm is synonymous with the free distribution of
electronic works in formats readable by the widest variety of computers
including obsolete, old, middle-aged and new computers.  It exists
because of the efforts of hundreds of volunteers and donations from
people in all walks of life.

Volunteers and financial support to provide volunteers with the
assistance they need are critical to reaching Project Gutenberg-tm's
goals and ensuring that the Project Gutenberg-tm collection will
remain freely available for generations to come.  In 2001, the Project
Gutenberg Literary Archive Foundation was created to provide a secure
and permanent future for Project Gutenberg-tm and future generations.
To learn more about the Project Gutenberg Literary Archive Foundation
and how your efforts and donations can help, see Sections 3 and 4
and the Foundation information page at www.gutenberg.org


Section 3.  Information about the Project Gutenberg Literary Archive
Foundation

The Project Gutenberg Literary Archive Foundation is a non profit
501(c)(3) educational corporation organized under the laws of the
state of Mississippi and granted tax exempt status by the Internal
Revenue Service.  The Foundation's EIN or federal tax identification
number is 64-6221541.  Contributions to the Project Gutenberg
Literary Archive Foundation are tax deductible to the full extent
permitted by U.S. federal laws and your state's laws.

The Foundation's principal office is located at 4557 Melan Dr. S.
Fairbanks, AK, 99712., but its volunteers and employees are scattered
throughout numerous locations.  Its business office is located at 809
North 1500 West, Salt Lake City, UT 84116, (801) 596-1887.  Email
contact links and up to date contact information can be found at the
Foundation's web site and official page at www.gutenberg.org/contact

For additional contact information:
     Dr. Gregory B. Newby
     Chief Executive and Director
     gbnewby@pglaf.org

Section 4.  Information about Donations to the Project Gutenberg
Literary Archive Foundation

Project Gutenberg-tm depends upon and cannot survive without wide
spread public support and donations to carry out its mission of
increasing the number of public domain and licensed works that can be
freely distributed in machine readable form accessible by the widest
array of equipment including outdated equipment.  Many small donations
($1 to $5,000) are particularly important to maintaining tax exempt
status with the IRS.

The Foundation is committed to complying with the laws regulating
charities and charitable donations in all 50 states of the United
States.  Compliance requirements are not uniform and it takes a
considerable effort, much paperwork and many fees to meet and keep up
with these requirements.  We do not solicit donations in locations
where we have not received written confirmation of compliance.  To
SEND DONATIONS or determine the status of compliance for any
particular state visit www.gutenberg.org/donate

While we cannot and do not solicit contributions from states where we
have not met the solicitation requirements, we know of no prohibition
against accepting unsolicited donations from donors in such states who
approach us with offers to donate.

International donations are gratefully accepted, but we cannot make
any statements concerning tax treatment of donations received from
outside the United States.  U.S. laws alone swamp our small staff.

Please check the Project Gutenberg Web pages for current donation
methods and addresses.  Donations are accepted in a number of other
ways including checks, online payments and credit card donations.
To donate, please visit:  www.gutenberg.org/donate


Section 5.  General Information About Project Gutenberg-tm electronic
works.

Professor Michael S. Hart was the originator of the Project Gutenberg-tm
concept of a library of electronic works that could be freely shared
with anyone.  For forty years, he produced and distributed Project
Gutenberg-tm eBooks with only a loose network of volunteer support.

Project Gutenberg-tm eBooks are often created from several printed
editions, all of which are confirmed as Public Domain in the U.S.
unless a copyright notice is included.  Thus, we do not necessarily
keep eBooks in compliance with any particular paper edition.

Most people start at our Web site which has the main PG search facility:

     www.gutenberg.org

This Web site includes information about Project Gutenberg-tm,
including how to make donations to the Project Gutenberg Literary
Archive Foundation, how to help produce our new eBooks, and how to
subscribe to our email newsletter to hear about new eBooks.