Répertoire des administrateurs & commissaires de société, des banques, banquiers et agents de change de France et de Belgique

Einführung in die Volkswirtschaftslehre

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Monograph

Identifikator:: 1751319059

URN:: urn:nbn:de:zbw-retromon-129553

Document type:: Monograph

Title:: Répertoire des administrateurs & commissaires de société, des banques, banquiers et agents de change de France et de Belgique

Place of publication:: Paris [u.a.]

Year of publication:: [1926]

Scope:: 1316 S.

Digitisation:: 2021

Collection:: Economics Books

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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Répertoire des administrateurs, commissaires, liquidateurs, curateurs, etc., de sociétés

Collection:: Economics Books

206 THE WORK OF THE STOCK EXCHANGE course a fact that he often buys and sells the same day, and, in consequence, does not usually need to receive or deliver securi- ties but employs the Stock Clearing Corporation® as his agent to look after these matters for him. But in this respect, the Stock Clearing Corporation as agent merely performs this work for him in the same way and with the same splendid economy of time, labor, and capital as it does for the other classes of Stock Exchange members. The con- tracts he makes are precisely similar to the contracts made on ‘he floor by any other member of the Exchange, and are settled and cleared in just the same way. Far from allowing him to escape responsibility for his contracts in any way, the Stock Clearing Corporation is in reality the main agent for their punctual and absolute enforcement.® Hence, so long as the floor trader is, by virtue of having made a contract to buy, long of any stock, he is just as certainly assuming the risk of owning that stock as if he already held the certificate itself in his box. The legitimacy of the floor trader’s transactions in consequence cannot be questioned nor through a misunderstanding of the clearance system termed “gambling,” without questioning the legitimacy, not only of the whole sys- tem of clearing stocks and bank credit operated by the Stock Clearing Corporation, but of every bank clearing house in this or any other nation. A wider knowledge of clearance as it is employed in the vast credit, security, and commodity markets of today quickly dissipates any such unfounded charges against the floor trader. The Floor Trader’s Profits.—An adequate notion of the Aoor trader’s business can be gained only after some reference to its dollar-and-cents side. When his operations are normal and most useful economically, he is trading at his own risk for a profit on each transaction of 24 of a point, which amounts to $12.50 gross on 100 shares of $100 par stock. It must be re- membered that the floor trader’s calling involves large risks and © Chapter XII, p. 325.

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