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.

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Document type:: Monograph

Structure type:: Chapter

Title:: Chapter IV. The distribution of securities

Collection:: Economics Books

THE DISTRIBUTION OF SECURITIES 105 mental regard is shown it on the Exchange. On the other hand, its genuine merits will usually be recognized there quickly and accurately. This seasoning process is naturally of vast benefit to con- servative investors. The latter can wait until a security is well seasoned and avoid losses due to any weakness in it which has been revealed, and benefit by the constant readjustment of the price accurately to fit the risk entailed by its ownership. Since this seasoning is performed in the main by the speculator, he thus renders at his own risk a real service to the conservative investor, without cost to the latter.1? Speculative Maintenance of the Floating Supply.— Meanwhile, of course, the same speculators do not as a rule hold the same stocks for long periods of time. Instead, there is a constant “churning” of the speculative floating supply of listed stocks in the market. Frequently, a given portion of a fairly speculative stock may be held in rapid succession by hundreds of different speculators before it becomes sufficiently seasoned to justify the investor's purchasing it and locking it up permanently in his deposit box. But for all the swift changes of speculative ownership experienced by any one share of stock, the whole floating supply of the stock issue in question continues to be sustained at all times by all the speculators in the market, including the floor trader, the specialist, the odd-lot dealers, and the speculating customers of commission houses. Anyone can sell at any time at a concession in price, and no speculator or investor need be “stuck” with an unsalable cer- tificate, as is so frequently the case with unlisted stocks. Striking Securities from the List.—Occasionally, how- ever, this process of seasoning and distributing a security upon the Stock Exchange will suffer a rude interruption, owing to the security being either suspended or stricken from the list by the Committee on Stock List. The conditions which commonly "See Chapter II, p. 55, and Chapter V. p. 128.

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