The work of the Stock Exchange

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Monograph

Identifikator:: 1831284952

URN:: urn:nbn:de:zbw-retromon-225876

Document type:: Monograph

Author:: Meeker, James Edward http://d-nb.info/gnd/126597340

Title:: The work of the Stock Exchange

Edition:: Revised edition

Place of publication:: New York

Publisher:: The Ronald Press Company

Year of publication:: [1930]

Scope:: XVI, 720 Seiten; Illustrationen, Diagramme

Digitisation:: 2022

Collection:: Economics Books

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Document type:: Monograph

Structure type:: Chapter

Title:: Chapter IV. The distribution of securities

Collection:: Economics Books

92 THE WORK OF THE STOCK EXCHANGE Further Preliminary Distribution.—Qften this prelimi- nary distribution of a new security is not sufficiently stable and complete to meet the listing requirements of the Stock Ex- change. In consequence, the new issue may undergo a further process of distribution on the New York Curb Market. Although Stock Exchange houses often have representatives there, nevertheless the Curb Market is an organization com- pletely separate from the Stock Exchange. The chief economic function of the Curb is as a preliminary market; frequently it anticipates the termination and even the opening of a public offering of new securities, by allowing contracts for their purchase and sale to be made “when, as and if issued.” After a new security has been traded in upon the Curb for a period, its distribution may of course undergo further changes. The principal sellers there are: (1) members of the syndicate or subsyndicate (provided, of course, that their allotments have not already been sold out); (2) speculators who pur- chased on the public offering ; and (3) speculators who wish to resell the securities also purchased there. The principal buyers are as before: (1) pure investors, (2) speculative investors, and (3) speculators “for the turn.” The chances are that a considerable proportion of the new issue may still remain in speculative hands. Nevertheless, the investment holdings usually tend to increase, provided, of course, that the security is of the sort which warrants purchase by investors. In this way a more stable and satisfactory pre- liminary distribution is attained. This is sometimes as far as the matter goes, either because the Stock Exchange authorities are unwilling to have the particular security listed on the latter market, or because the issuing company does not apply for such a listing. Part of the Stock Exchange in Distributing Process.— Thus far the operation of the underwriting syndicate or sub- 6 See Appendix IVe.

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