The work of the Stock Exchange

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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

RISE OF THE NEW YORK STOCK EXCHANGE 83 The Odd-Lot Dealer and the Floor Trader.—As for the dealers, the odd-lot dealer buys and sells less than the trading unit of 100 shares of stock. So complex is his work that con- sideration of it must be deferred to a later chapter.?? Then there is the floor trader,” who is a free-lance dealer in all stocks listed on the Exchange, and who will buy or sell any of them on his own account whenever he sees the likelihood of a profit in the transaction. The floor trader performs a function very useful in the work of the Exchange, by constantly helping to create close prices for stocks and thus enhance their negoti- ability. Both the odd-lot dealer and the floor trader act for themselves rather than as agents for other principals, and their earnings depend in consequence upon obtaining a profitable dif- ference between the buying and selling prices of their transac- tions rather than upon any commission such as the brokers obtain The Specialist.—I ast and most difficult of all to define, is the specialist.** Usually the specialist, as indeed his name would imply, specializes as a dealer or broker in a particular security or securities located at a single post. He is not allowed to act as both dealer and broker in any single transaction, and he cannot charge a commission while he profits by the sale of a security at a higher price than that at which it was purchased. Commission brokers often turn over their orders to the specialist to execute, as a broker and their agent, on the same basis as with the “two-dollar” broker. Some specialists act as dealers in 100-share orders, and occasionally in odd-lot orders as well. In the former case their work resembles that of a floor trader, except that it is concentrated on one stock or group of stocks ; in the latter case, of odd-lot orders, they do in their few special stocks what the odd-lot house does in all stocks. In addition to the above brokers, dealers, and traders in 2 See Chapter IX. B® See Chapter VIII. M bid. % See Chapter VIII.

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