Volkswirtschaftliches Lesebuch für Kaufleute

The work of the Stock Exchange

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Monograph

Identifikator:: 879457236

URN:: urn:nbn:de:zbw-retromon-16989

Document type:: Monograph

Title:: Volkswirtschaftliches Lesebuch für Kaufleute

Place of publication:: Frankfurt a. O.

Publisher:: Verlag der Waldow'schen Buch- und Kunsthandlung (R. Wengler)

Year of publication:: 1905

Scope:: 1 Online-Ressource (XV, 514 Seiten)

Digitisation:: 2017

Collection:: Economics Books

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Document type:: Monograph

Structure type:: Chapter

Title:: Zweiter Teil. — Handel

Collection:: Economics Books

THE DISTRIBUTION OF SECURITIES 93 to be listed, the Exchange endeavors to prevent forged certifi- cates from gaining circulation. “The part that the New York Stock Exchange plays in this regard,” declared a financial expert of long experience in Wall Street,'® “may be compared to the creation of the national banks and their notes of issue, after the era of wild cat private bank note currency.” The preven- tion of forgery is, of course, basic to the ready negotiability which is so important and advantageous a characteristic of securities listed on the Exchange. Transfer and Registry Offices.—Corporations which list their registered shares on the Exchange must maintain two separate offices or agencies in the Borough of Manhattan, City of New York—one for their transfer and the other for their registration. In some cases, the transfer offices are simply departments of the corporation, but often companies prefer to pay banks or trust companies to act for them in the capacity of transfer agent. But the registrar must always be some insti- tution (such as a bank or trust company) completely inde- pendent of the corporation. Although the corporation pays for the services of the registrar, the latter is under binding agreements to the Stock Exchange, and will not register addi- tional stock until the Committee on Stock List gives authority for it. Stock certificates listed on the Exchange are not valid until countersigned by the transfer agent and registered by the registrar, and thus the public is protected not only against security forgeries, but also against the secret overissuance of stock by an unscrupulous corporation. Bearer securities naturally do not need transfer, but as a rule a registrar is required to authenticate them for the market. Responsibility of the Stock Exchange.—The listing re- quirements also call for a statement from the company as to its corporate structure, its past earning record, its assets and lia- bilities, etc. The purpose of the requirements is to make avail- 10 Article by Duncan MacGregor in the Financial Barometer.

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