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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 . |
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