Theories of verbal humor to date have ignored or glossed over the importance of the roles of the audience and the situation in the humor event. Most theories presuppose that the joke text conveys humor, but it is demonstrated here that humor is not possible and cannot exist unless and until an audience determines that the joke text is amusing. This study surveys theories of humor and establishes that there is, indeed, a gap in the literature concerning the relevance and the significance of both the audience and the situation to verbal humor. The linguistic aspects, especially the semantic properties, of verbal humor are examined, followed by an examination of the rhetorical aspects of verbal humor, primarily in terms of audience, discourse ...