Stag Speculator

Stag Speculator

Stag, a speculator who hopes to make a profit by securing an allocation of new shares and selling them immediately at a premium. The operation succeeds only if shares are being offered for sale by a company with good prospects so that the demand for its shares exceeds the amount of the new issue and the opening price on the Stock Exchange exceeds the issue price. The difference between the two, less expenses and taxes, is the stag's profit. Unlike the investor, the stag buys only with the intention of selling. Since only a fraction of the issue price has to be paid on allocation (the remainder at a later date), the stag aims to finance the purchase of the shares by the proceeds from their sale. In this way a sizeable turnover in shares can be handled on a small bank balance. The stag takes the risk of a general slump in share prices or a loss of confidence in the company. The new shares may then open at a discount and if the stag sells he may make a large loss or is forced to keep shares he had no intention of buying.

More? Economic - Careers In Economics


consumeraffairs.org.uk

Since then his writings have in turn been increasingly reinterpreted as a special case both by some followers and by some economists who had not wholly accepted his writings. The content of economics is in a state of change, and this consumeraffairs.org.uk site is therefore not a final statement of economic doctrine.

Economics is in the last resort a technique of thinking. The reader will therefore need to make an intellectual effort, more substantial for some web entries than for others, to get the most interest and value out of this website.