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 II. Organized security markets and their economic functions

Collection:: Economics Books

48 THE WORK OF THE STOCK EXCHANGE more broadly it enjoys public participation, the more difficult becomes the attempt artificially to raise or depress its prices. Professor H. C. Emery, speaking of the failure in Germany to regulate exchanges by legislation,’ once stated: The result of this experience was to prove practically what I have maintained for years from my theoretical study of this subject, that the most easily manipulated market is the limited market. The market you cannot manipulate is the big, open, easy, facile market, where sverybody can trade with the least restriction. . . . There is no man 50 big he can manipulate a market into which the whole public comes. The idea that a big man can manipulate a market is greatly exaggerated anyway, but the bigger the market the harder it is for the big man to manipulate it. If the market is bigger than the man he cannot manipu- late it. If you have a little market a big man can manipulate it. . . . The big man cannot manipulate a market into which the public comes freely. The public determines the price of the stock in the long run, and the more easily you let the public come in the harder it is for the big man to manipulate. An experience of over a century in maintaining America’s largest and most important organized market has taught the members and governors of the New York Stock Exchange the vital necessity of keeping their great market free and open In fact, this very phrase—‘‘a free and open market”’—is con- stantly on the lips of Stock Exchange men as an ideal for which they must invariably strive. Meaning of “Free and Open Market.”—By a “free” mar- cet, the Stock Exchange members and officials mean one which is not dominated by any single man, or any single group or class of men, in defiance of natural supply and demand. Stu- dents of the exchanges all recognize that a national and highly organized market, where the full force of the buying and sell- ing orders of a nation is constantly reflected, cannot be manipu- lated nearly so easily as a non-speculative, unorganized market. A combination of wholesale dealers in fountain pens or shaving soap, for example, could easily adjust the price of the article to 6 See testimony of Professor H. C. Emery in “Regulation of the Stock Exchange,” n. 330.

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