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

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Document type:: Monograph

Structure type:: Chapter

Title:: Chapter IV. The distribution of securities

Collection:: Economics Books

I12 THE WORK OF THE STOCK EXCHANGE can also be clearly detected in the accompanying chart (Fig- ure 6). The Floating Supply of Commodities.— This necessity of gaining distribution by the intermediate aid of a speculatively held floating supply is nowise peculiar to securities. Few com- modities or articles in the world today can normally be sold by producer to consumer as fast as production takes place. Whether in the wholesale cereal or textile commodities, or in manufactured products like automobiles and shoes, distribution inevitably involves a carrying process between the time when production is completed and the time when the final sale to the consumer is made. Since in this interval demand may slacken and prices fall, this carrying process which attends the sale of practically all classes of goods necessarily involves a speculative risk, and an accompanying chance for speculative profit. {n some cases goods are carried by several different types of speculative dealers, such as wholesalers, jobbers, and retailers, and reach the consumer only through the last class. All such dealers, since they attempt to make a profit by purchasing cheap and selling dear, are essentially speculators. Neither are they mere parasites. Without the stocks ready for sale which such dealers constantly carry at their own risk, most modern con- sumers could not even obtain food, clothing, and shelter for themselves, let alone any of those articles demanded by the refinements of modern civilization. Thus, the stock speculator who buys 100 Steel on margin trusting that its price will increase, is performing much the same service to society as the grocer who buys his canned goods on credit and in hopes of disposing of them at a profit. The higher degree of organi- zation which characterizes securities markets, however, permits the stock dealer to enter into or conclude his transaction more easily. Slowness of Security Distribution.—For several reasons the distributing process occurring in securities on the stock

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