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 VI. A typical investment transaction

Collection:: Economics Books

A TYPICAL INVESTMENT TRANSACTION 167 in any other kind of modern business.’ There is no “welching on a trade” afterward; no evasion of a contract is sought or allowed. The wave of canceled contracts which occasionally sweeps commercial America never passes the threshold of the Exchange. No business institution or group in this or any other country can boast of higher commercial ideals, or of stricter adherence to what its constitution calls the “just and equitable principles of trade,” than the New York Stock Exchange. Origin of Demand.—An inquiry into the demand or buy- ing side of this sale—that is, into what impelled Wilkins, the broker, to enter the Steel crowd and bid for stock, will lead us to San Francisco, three thousand miles from Wall Street. At almost the same moment that Jones was reflectively fingering his 100-share Steel certificate in the Baltimore brokerage office, a Mr. Smith was pondering over the ticker tape in a similar branch office of Wilkins & Co. in San Francisco. Smith has prospered in the Oriental exporting business and finds himself with a surplus of $15,000, which he desires to invest. He at length selects U. S. Steel common stock as the security best fitted to his needs. Accordingly, he turns over his check for $15,000 to the San Francisco branch of Wilkins & Co. and makes out a “buy” ticket for 100 shares of Steel, limiting the order to a price of 150% or less. In due course this order speeds through channels similar to those observed in the case of Mr. Jones's order to sell. The order clerk in San Francisco sends the order over a private telegraph wire to the New York office of Wilkins & Co.; thence it is relayed by private phone to the Stock Exchange floor, where a clerk takes it down on a buying slip (Figure 10) ; then Wilkins obtains and executes it. And, like the capable broker that he is, Wilkins obtained the stock 14 under the price limit set for its purchase by his far- away customer, by observing conditions and waiting at the post T 1 See Appendix Vie.

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