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 III. The rise of the New York stock exchange

Collection:: Economics Books

82 THE WORK OF THE STOCK EXCHANGE quately and profitably performing many different specialized tasks. Brokers can be subdivided into several classes, the most important of which is perhaps the commission broker. The latter is usually the “floor member” of a partnership (or “house” ) whose orders he “executes” on the Exchange. Such “commission houses” 2° differ considerably in the clientele they serve and the type of business they do. Some have a few wealthy customers, while others through their branch offices and out-of-town correspondents handle the smaller orders of thousands and thousands of average investors all over the country. Certain houses also specialize in some group of securi- ties and gain a reputation in—say—railroad, or petroleum, or motor stocks. “Two-Dollar” Broker.—Then there is the “two-dollar broker,” who is officially attached to no one commission house, but who makes use of his Exchange membership to assist the commission houses in executing their orders, particularly in heavy markets when the work is too great for the regular com- mission broker to handle it all on the floor. The “two-dollar” broker is therefore a free lance whose customers are other brokers. His name arises from the fact that his compensation for purchasing or selling 100 shares of stock used to be $2 out of the $12.50 which the commission broker formerly charged his customer. Although this former commission rate has been changed, nevertheless the “two-dollar” broker’s old title has persisted.* The practical value of the “two-dollar” broker is that his work imparts a flexibility and a reserve power to the machinery of the Exchange which it would not otherwise have, and enables the fluctuating number of sales made from day to day to be handled smoothly and efficiently, whether they are many or few. © 2See Chapter XV.

Access restriction

Copyright

fullscreen: The work of the Stock Exchange

Monograph

Chapter

Table of contents

Download

Monograph

Chapter

This page

Image fragment

Citation links

Citation recommendation