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 VI. A typical investment transaction

Collection:: Economics Books

A TYPICAL INVESTMENT TRANSACTION 165 remains at a single post and confines his trading to a few of the stocks assigned to it, he would always be in a position to take advantage of any sudden change in market conditions by which Steel could be sold at a limit price of 200. Effecting a Sale.—But in the present case the market is very close indeed to the limit of 150 on Jenkins’ order. Jenkins is, of course, anxious to sell his customer’s stock for the highest possible price. In an attempt to get for the latter an additional 1% over his price limit of 150, Jenkins accordingly joins in the chorus of voices and offers it at 15014. But since no one seems willing to buy Steel stock at 15014, the lowest price so far quoted by sellers, he next shouts, “Sell 100 Steel at 150.” Scarcely has he uttered this offer than Wilkins, another com- mission broker in the Steel crowd, promptly shouts, “Take it,” thus indicating that he will buy Jenkins’ stock at the price the latter has named. If Wilkins had not been swift in buying the 100 Steel, some floor trader or specialist in the crowd might have forestalled him by purchasing it. Sometimes, indeed, two Exchange members will cry, “Take it” (or in case both are attempting to sell, “Sold!”) at exactly the same instant. But they settle such a difficulty instantly and impartially by produc- ing coins and “matching” one another to see which shall “get the sale.” The winner thereupon enters the transaction on his records as a sale, while the loser remains at the post to buy the stock he is after from someone else.!* The case of the sale of Steel at 150 here cited has purposely been kept as simple as possible, in order not to confuse the reader. There is, how- ever, a very extensive and complex technique in effecting floor transactions; the rulings on more complicated market transac- ions than the example given here will be found in an appendix to this chapter.® Reporting the Sale.—The magic words “Take it” mark the real point at which Jenkins’ order is “executed,” although 14 See Appendix VlIa. 15 See Appendix VIb.

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