COVER. In speculative stock and share transactions, a term employed to signify a "deposit made with a broker to secure him from being out of pocket in the event of the stocks falling against his client and the client not paying the difference" (In re Cron mire, 1898, 2 Q.B. 383). It is a mode of speculation engaged in almost entirely by persons who wish to limit their risk to a small amount, and, generally, the transactions are carried out in 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; in the United States it is referred to as the margin. Cover is not money deposited to abide the event of a wager, but as security against a debt which may arise from a gaming contract, and it may be recovered if unappropriated.
(See BUCKET-SHOP.) Cover, in military language, is any means, natural or artificial, of concealment from view or protection from fire. For COVERED WAY see FORTIFICATION AND SIEGECItAFT.