The work of the Stock Exchange

Bibliographic data

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

Usage license:: Get license information via the feedback formular.

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Chapter X. The bond market

Collection:: Economics Books

THE BOND MARKET 20 respectively above or below the price for the $1,000 denomi- nation. With Liberty bonds, small pieces are readily exchange- able the same day at the Federal Reserve Bank of New York for large pieces, or vice versa; this speedy facility for exchange permits small Liberty bonds to be bought and sold at very small adverse differences from their price on $1,000 denominations. But with bond issues where this speedy facility for exchange does not exist to the same extent, it is necessary to deal in small pieces at a greater adverse difference in price. But this $1,000 unit makes the purchase or sale of large blocks of bonds at the same price on the Exchange very difficult and often impossible, and as has been stated such large transactions usually occur in the outside market. As to the variation of bids and offers for bonds, the Con- stitution (Rules, Chapter I, Sec. Q) states: Bids or offers shall not be made at a less variation than 14 of one dollar in stocks, and 28 of 1% of the par value of bonds: provided, however, that the Committee of Arrangements may from time to time, in its discretion, determine that transactions may be made at varia- tions less than the above, fixed by said Committee, on transactions in Foreign and Domestic Government bonds and notes, State, County and Municipal securities, short time bonds and notes of corporations, or on rights and stocks selling at a price of one-eighth or less, which said variations shall thereafter be in effect and be reported to the Governing Committee. Thus the bulk of listed bonds are quoted by 14s like most listed shares. During the period when Liberty bond trading was extensive on the Exchange, variations of 1 /50 were per- mitted, though later these were altered to 1 /32. Share prices on the New York Stock Exchange are quoted “flat” —that is, one pays no more than the quoted price for the given share on account of accrued dividends, which are com- pensated for by a rising price tendency as the date approaches as of which they are payable. Thus it is necessary for the Stock Exchange to announce the time at which shares will sell ‘ex-dividend,” or without this accrued dividend to the new

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