Online Encyclopedia

Search over 40,000 articles from the original, classic Encyclopedia Britannica, 11th Edition.

COVER (from the Fr. convert, from cou...

Online Encyclopedia
Originally appearing in Volume V07, Page 343 of the 1911 Encyclopedia Britannica.
Spread the word: del.icio.us del.icio.us it!

See also:

COVER (from the Fr. convert, from couvrir, to cover, See also:Lat. cooperire)  , that which hides, shuts.in or conceals, a lid to abox or See also:vessel, &c., the binding of a See also:book or wrapper of a See also:parcel; as a See also:hunting See also:term, the See also:wood or undergrowth which shelters See also:game . As a commercial term, the word means in its widest sense a See also:security against loss, but is employed more particularly in connexion with stock See also:exchange transactions to signify a " See also:deposit made with a See also:broker to secure him from being out of See also:pocket in the event of the See also:stocks falling against his client and the client not paying the difference " (In re Cronmire, 1898, 2 Q . B . 383) . It is a mode of See also:speculation engaged in almost entirely by persons who wish to limit their See also:risk to a small amount, and, as a See also:rule, the transactions are largely carried out in See also:England with " outside " brokers, i.e. those dealers in securities who are not members of the Stock Exchange . The deposit is so much per cent or per See also:share, usually 1% on the See also:market value of the securities up to about twice the amount of the turn of the market; the client being able to See also:close the transaction at any See also:time during the currency of the See also:cover, but the broker only when the cover is exhausted or has " run off." Cover is not See also:money deposited to abide the event of a See also:wager, but as security against a See also:debt which may arise from a gaming See also:contract, and it may be recovered back, if unappropriated .

End of Article: COVER (from the Fr. convert, from couvrir, to cover, Lat. cooperire)
[back]
1ST BARON THOMAS COVENTRY COVENTRY (2578–1640)
[next]
MILES COVERDALE (1488 ?-1569)

Additional information and Comments

There are no comments yet for this article.
» Add information or comments to this article.
Please link directly to this article:
Highlight the code below, right click and select "copy." Paste it into a website, email, or other HTML document.