LIMIT: A price which a broker must not exceed in executing an order for his customers. It may also be a restriction of the amount to be purchased or sold.
LISTED SECURITIES: Securities before they can be listed upon any board of trade or stock exchange must have complied with certain rules of the exchange. This does not imply that listed stock has any greater intrinsic merit than unlisted stock but it merely shows that certain facts and figures in relation to the security have been given more or less publicity.
LONG: One who holds stock or grain for a rise in price, or, one who has a contract under which he can demand such stock or grain on or before a certain day. The opposite of short.
MARGIN: An amount of money deposited with the broker to insure him against loss; a part of the purchase or selling price.
O: The "Ticker" abbreviation for offered when accompanied by figures; for instance, "G. N. O. 76" would mean that Great Northern Common Stock was offered at $76.00 per share.
OPEN MARKET: A market where any or all may buy or sell.
OPEN ORDER: An order which is good until cancelled.
OPTION: An agreement of purchase or sale, good only for a certain time.
PIT: The portion of the board of trade where floor trades are made. This term is particularly applied to Chicago. Other stock exchanges set aside certain places signified by posts set in the floor for trading and in these exchanges the trading points are called posts instead of pits.
POOL: A combination of buyers who work together and invest their joint capital as one. (The different boards of trade have enacted strict rules against pooling.)