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Page THE HILLS HOMESTYLE Saturday Septembers Stock market investment can be risky venture TORONTO With so many stock market bears ambling about brave souls may be tempted to sell short This is a nifty thing to do if it works But If the market turns against you you could lose more money than you bargained for Fortunately there is more than one way to skin a bear If selling short is too risky you can buy op tions to sell either stock or a market index If selling short is not risky enough and you have lots of money you can play the index futures market I called Paul Bates president of Marathon Brokerage to ask how people can bet against the market Marathon is a discount brokerage firm that partly owned by Cen tral Guaranty Trust Is selling short riskier than buy tag Considerably Mr Bates said If you buy a stock for and it comes crashing down the most you can lose is your investment If you sell the stock short and it subsequently skyrockets you could lose a bundle That s because you would have to buy stock in the market whatever the price to cover your position NOT IDEAL When you sell short you are sell stock that you do not own The risk is that you may have to come up with it Your broker literally borrows the stock from another client Mr Bates explains The lender may want it back If he Dianne Matey does or if the stock goes up so much your broker gets nervous and asks you for more money you could be forced to go out and buy it It s a problem that should be look at carefully Mr Bates said Selling short should be limited to stocks that are traded actively he notes The price of thinly traded stocks tends to be volatile What brokers will not say the prospect of a stampede of small investors selling short gives them a headache If the market turns with a vengeance these peo ple could lose their shirts Brokers would be hard pressed to collect from them Mr Bates for one prefers op tions An option gives you the right to buy or sell a stock at a set price for a limited period of time A call option gives you the right to buy a put option to sell If you think the market is about to tumble you can buy out options Bear in mind though that most people who play the options market lose money That com mon of most ultra speculative situations Mr Bates conceded LIMITED LOSS With an option the most you can lose is your investment If you buy 500 worth of put options and the market rebounds you will let your option expire and kiss your good bye To trade options a Marathon Brokerage you need a minimum balance of As well your broker would prefer if you had some experience with the stock market As for the futures market this is not a place for small investors The risks are far higher than the op tions market and the potential losses are enormous Futures work best as a hedging device for big in investors Finally there are new creatures called warrants Warrants to sell the Japanese stock market known as Nikkei puis have been tremendously successful dian dollar puts in contrast are considered expensive If you would like to bet on the stock market as your stockbroker for more information If you prefer to deal with a discount broker you can call Marathon toll free number from anywhere in Canada Most banks also offer discount brokerage services Shop around to compare rates and services Starting your own business requires basic research By RICK BATES People who go into business just tt make money usually go broke It takes a wide range of skill and above all determination Look hard before leaping from your humdrum job because about per cent of small business startups fail within the first year But for those who succeed there can be tremendous satisfaction from becoming masters of their own destiny Striking out on ones own becomes more tempting in an economic downturn Big companies It often means letting people and shuffling the corporate deck The job transfer might mean a long commute or a belated tion that loyalty to the company was a oneway street Whatever the reason more people begin to dream of starting their own little business A rash decision however could lead to ruin First take an honest look at your own strengths and weaknesses Don kid yourself like the guy who sucks in his belly when passing a mirror There t be a direct link bet ween your present job skills and your new line of business A mechanic for needn t con Tine his truatiitgg to opening a garage He might decide to go into custom cars or supervising a do it yourself repair shop It comes down to this find yourself a market and get to know that market Go to trade shows read annual reports and business newspapers talk to suppliers and potential customers In his Small Business Handbook Irving Bursteiner says a successful small business owner should be a jack of all trades and a master of all After doing your own basic research might want to talk to a consultant to see if you re going about it the right way The most step is to prepare a basic business plan Look upon it as a road map Set out on paper your cash flow and income forecasts and the financial tion you expect your company be in a year from now and five years down the road To spur realism keep n mind the spectre that 80 pei cent of small business go under within six years The step is the hardest get ting the launching money Banks some badly burned by easy going loans in boom times are getting pickier You might have to raise much of the money through mor your home or persuading relatives to invest With money in hand comes the I slogging moment of truth was the management expertise you thought had good enough Incompetence is the root cause of practically all business failures All the determination in the world won make up for 1 1 Given your skill motivation and self satisfaction will turn out to be greatly more important than just seeking to make money For CA advice on TV see Your Wealth a ailable on broadcast channels in Ontario and on satellite across Canada or see Money in the Bank on your community table channel is general financial ad Canada chartered tants Kick Bates is an assistant pro fessor I Diversity of Coffee machines recalled TORONTO Proctor Silex Canada Inc has announced it is voluntarily recalling certain drop made mg 1985 and because they may present a potential fire hazard The coffeemakers involved are Model Type A3 with Series Numbers ending in 58 or 68 However units marked with Series Numbers A1558 or A3Q58 are not being recalled The model type and series number are marked on the metal bottom plate of the The potential hazard discovered by results from an improper operation of a compo nent part of the sup plied by another company The subject to this voluntary recall are no longer be ing manufactured nor are they available in retail stores Continued on Survey Completedl MORTGAGE RATES stto ANNUAL INTEREST 1 SIX Imonth ONE YEAR TWO YEAR THREE YEAR FOUR FIVE YEAR YEAR TRUST COMPANIES Canada Trust 13 13 13 13 13 13 50 Municipal Trust NA 13 14 14 14 Trust 13 75 13 13 13 50 13 13 50 CHARTERED BANKS Bank of Commerce 13 13 13 13 13 Bank of Montreal 13 13 13 13 75 13 50 13 40 Bank of Nova Scotia NA 13 13 13 13 13 Royal Bank 13 13 13 13 75 13 13 Toronto Dominion 13 13 13 75 13 13 50 13 This survey was prepared to help the Herald readers track weekly Bank and Trust Company rates Hometown names can be researched at Ottawa bureau Have you ever wondered how your home town got its name The Cana dian Permanent Committee on Geographical Names in Ottawa has records of about place- names which come from a variety of sources Some are quite obvious while others lea ve us perplexed Manitoba is always a puzzle Is it a Native name A French derivation An agricultural product Actually is named after a fictional character who invented a submarine and went down through a hole in a bottomless lake into the earth where he found gold Places are often named after their physical descnption people other places or events that took place nearby Edenbndge Saskatchewan was not in fact named directly for Adam and Eve first home The town was started by a small group of Jewish farmers from South Africa and was originally called Bridge This was later changed to sounding SomL arc from Native languages and often described natural features like Winnipeg meaning murky waters and Niagara which means thunder of waters Many Canadian provinces came by their names in a similar way Yukon for instance comes from the Indian Yu ah meaning great nver and Quebec took its name from the Algonquin term for narrow passage When it was time to re name Rat Portage the neighbours got together came from Keewalm NO from Norman and from Rat Portage to make the name Kennra Then there are descnplive or lighthearted names like Peekaboo Corner in New Brunswick Come By Chance ind Heart s Content both in New Saint Louis du in Quebec and Cor in Ontario At first Funk Island seems to be in the colourfully descriptive category but in fact was not named for a melancholy mood The barren rock island made a wildlife sane tuary in is home to huge flocks of seabirds and likely got its name from the smell of bird droppings The influence of the French and British ruling class political or military leaders or famous ex can be seen in Canadian placenames The province of New Brunswick for example is named for the Bntish royal family of Brunswick British Columbia takes its name from the early non Native settle in the province as does Nova Scotia Latin for New Scotland after the first Scots who arrived in theprovincein Newfoundland originally called new found isle by explorer John Cabot in 1497 known as New found launde in 1502 The North West Territories was the original label for the land acquired from Hudson Bay Company in 1870 Ouch The naming of Kicking Horse Pass was definitely a painful process The name was adopted in 18SB when one of the first explorers of the pass that lies on the B C Alberta border was kicked the chest by a pack horse thai he was trying to pull out of the water Discover the history behind Canadian placenames in the new Junior Encyclopedia of Canada published by Publishers Ltd For more information on the En cyclopedia please call loll free