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.

APPENDIX 605 of the Exchange. Ultimately the stock was stricken from the list, and Mr. Ryan withdrew from membership in the Exchange. The corner in Piggly Wiggly Stores Class A stock was obtained, not by a Stock Exchange member but by the head of the company, Mr. Clarence Saunders. The Business Conduct Committee investi- gated the distribution of the stock among its member houses, owing to peculiarities in the price movements of the stock, which was being sold by the company outside the Exchange at prices below that ob- taining on the Exchange. The answers to the questionnaires sent to Exchange members accounted for only 39,802 out of 200,000 shares altogether; of these 33,025 were held by Mr. Saunders and other directors of the company. The amount of stock due on loans and open contracts was 13,662 shares. Mr. Saunders declared to the Ex- change his intention of maintaining a free and open market in the stock on the Exchange by lending any amount of stock desired with- out premium. Later the Exchange was notified that the advertising campaign to sell the stock outside the Exchange which the company was conducting, would be discontinued. - But the next day Mr. Saun- ders suddenly called for delivery of his stock, which in turn precipi- tated the calling of all loans of the stock made previously by Mr. Saunders and his associates. The amount of stock involved far ex- ceeded all the stock in the market other than that held by Mr. Saun- ders and other directors of the company. The enforcement of con- tracts simultaneously for the return of stock in this way would have forced it to any price which might be fixed by Mr. Saunders, and competitive bidding for the insufficient market supply might have brought about an acute though temporary “corner.” The same day the Governing Committee accordingly adopted a resolution suspend- ing dealings-in the stock, pursuant to the provisions of the Exchange Constitution. Also, the Stock Clearing Corporation in accordance with its rules, suspended the delivery of the stock due at 2:15 the next day. Mr. Saunders offered to settle with the shorts for $100 per share, and later raised this price to $1,000 per share. But a few days later, upon the date set by the Stock Clearing Corporation, all stock deliverable upon security balance orders was delivered prior to the settlement hour. Thus, the alleged “corner” was more psycho- logical than actual, and Mr. Saunders received all of the stock due him at prices which he contracted to pay for it. He had “cornered” merely the floating supply and not the outstanding issue, and when stock held out-of-town was, through the deferred delivery, permitted to come into the market, the “corner” rapidly broke down. Mean- while the Stock Exchange struck the stock from its list.

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