Put

of more. London Stock Exchange term; a put of more gives the holder the right to put (deliver) to the buyer an additional amount of stock equal to the amount named in the bargain, or in other words, to put twice as much stock as is named in the contract. If aman sells £1,000 consols, with the put of more, at 96 1-2 he can deliver £2,000 to the buyer. For. this extra right or privilege the holder of the put pays an extra price. | Pyramiding. A system of enlarging operations by use of paper profits (profits in transactions not yet closed and consequently not yet in hand). Illustration: One hundred shares of stock of the par value | of 100 is bought at Io on a margin of 5 per cent. The stock: advances to 15. There is a profit of 5 per cent which can be used as margin in the purchase of too shares more. The price | goes up to 20. There is then a profit of 5 per cent on the: second lot and an additional profit of 5 per cent on the first lot, so that there is an unencumbered profit of Io per cent on 100 shares or 5 per cent on 200 shares. The profit is utilized as margin for the purchase of 200 shares more. The price goes up to 25. Then there is an unencumbered profit of 5 per cent on the whole 400 shares or 20 per cent on 100 shares. This | profit is used to buy 400 shares more. Then, perhaps, the price drops back to 20. There being only 5 per cent margin on the whole 800 shares the whole accumulated profit of $3,500 disappears, as well as the margin of 5 per cent provided for the purchase of the first 100 shares. Should the price go on up to 30, however, the profits would | be increased by $4,000 which would provide § per cent margin for 800 shares more of stock, making the total amount of stock | held 1,600 shares 1,500 of which would have been purchased with profits.