Festschrift zur Feier des 250jährigen Bestehens der Freien Baugewerks-Innung Bauhütte zu Stade

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Monograph

Identifikator:: 897040368

URN:: urn:nbn:de:zbw-retromon-15215

Document type:: Monograph

Title:: Festschrift zur Feier des 250jährigen Bestehens der Freien Baugewerks-Innung Bauhütte zu Stade

Place of publication:: Stade

Publisher:: Selbstverlag der Freien Baugewerks-Innung

Year of publication:: 1913

Scope:: 1 Online-Ressource (110 Seiten, 24Blatt)

Digitisation:: 2017

Collection:: Economics Books

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

102 THE WORK OF THE STOCK EXCHANGE cialists’ books. During this uncertain initial period of trading in a new issue, most underwriting houses consequently feel under the necessity of stimulating its activity and stabilizing its price.*® This they do by putting orders in the market to buy the new security “on a scale down,” or sell it “on a scale up.” A given syndicate manager, for example, might give orders to buy 1,000 shares of a given newly listed stock at 99, 1,000 shares at g8, at 97, and 96, respectively; together with orders to sell 1,000 shares at 101, 1,000 at 102, at 103, and 104, respectively. The giving of such orders in no way constitutes “matching orders,” ** for the syndicate manager’s buying and selling orders are fixed at such prices that they cannot meet, but simply make it possible to execute any buying and selling orders which may come into the market, at approximately 100. By such operations any investor who wishes either to buy or sell the new security can be certain of being able to do so. In due course orders away from the market are sent in by investors and speculators, just as in the case of long-listed securities, and accumulate in the dealers’ and specialists’ books. Gradually, but as rapidly as they can, the syndicate members reduce the amounts of their “scale orders” until at length, the dangerous initial stage having been past, the new security is left to follow its own devices. It should be noted that this effort of the syndicate to provide an active market is not under- taken for the purpose of speculative profit; it tries to avoid heavy losses, of course, but usually incurs small ones by the operation. From the standpoint of the syndicate, it is an irk- some, dangerous, and not inexpensive moral duty which it owes to its investors and to its own good name. The Question of “Scale Orders.”—The grounds for objec- tion to this practice of employing scale orders are not so much that it stimulates the activity of trading in the new security, Sue Arend DE ats

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