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

114 THE WORK OF THE STOCK EXCHANGE in exactly the same form as when he received them. He is at liberty to sell them again at any time he wishes, and very often he does so. Thus, after being held for years by an investor, a given security certificate may readily be sold by him through the Stock Exchange to some speculator, and thereby added to ‘he floating supply. In consequence, it is one thing to sell listed securities to investors, and another to keep them sold to investors. Of course, some securities disappear in the course of time, either through the dissolution of the issuing corporation or through being paid off or converted into other securities. Nevertheless, there are bonds listed on the Stock Exchange which will not mature until after 2000 A.D., while stocks repre- sent shares in corporations which in theory at least are death- less and perpetual. Furthermore, every year sees new and unseasoned securities created and listed on the Exchange. Thus speculation in any average security must be both extensive and of long duration, and distribution of securities necessarily demands considerable financing through the collateral loan market.?® Funds thus employed perform in general the same economic service as funds employed by speculative dealers in effecting the distribution of any commodity or article to the consumer. Professor H. C. Emery has epitomized this whole season- ing process experienced by listed securities in the following words: Each new enterprise must stand the test of criticism, and unless unusually sound will be the subject of active speculation. Its ups and downs follow the changes of opinions, until gradually a continuous flow of dividends of moderate amount show the stability of real value (or lack of dividends shows the valuelessness) of the security and speculation ceases. The particular investment has been put through the ordeal and come out whole. It then becomes a field for the private investor. Many of the more active stocks of today may run their course and fall into the honorable obscurity of certainty. 28 See Chapter XI.

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