|
COVER (from the Fr. convert, from couvrir, to cover, See also: book or wrapper of a parcel; as a 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 security against loss, but is employed more particularly in connexion with stock See also: exchange transactions to signify a " deposit made with a 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 share, usually 1% on the market value of the securities up to about twice the amount of the turn of the market; the client being able to close the transaction at any See also: time during the currency of the 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 wager, but as security against a See also: debt which may arise from a gaming contract, and it may be recovered back, if unappropriated
.
|
|
|
[back] 1ST BARON THOMAS COVENTRY COVENTRY (2578–1640) |
[next] MILES COVERDALE (1488 ?-1569) |
There are no comments yet for this article.
Do not copy, download, transfer, or otherwise replicate the site content in whole or in part.
Links to articles and home page are encouraged.