The work of the Stock Exchange

Bibliographic data

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

170 THE WORK OF THE STOCK EXCHANGE know the price within $10 per share. Thus, a sale of 300 American Tobacco at 24834 was formerly printed “AT 3.24834,” but later “AT 3.8348,” etc. Thus it comes about that Jones, waiting in the Baltimore hrokerage office, presently sees a quotation for U. S. Steel on the tape and has reason to think that it may be his stock which was sold, while at almost the same moment Smith in San Francisco sees the same quotation and has reason to believe that his buying order has been executed. Limitations of the Stock Ticker.—Of course, the cus- ‘omer in an out-of-town brokerage office must not be too hasty in concluding that the first quotation which appears on the tape following the placing of his order of necessity represents the sale of his own stock. Both from the many physical steps out- lined above which must be gone through to transmit and exe- cute orders for stocks and to report their prices over the ticker, and from the mechanical limitations of the ticker system itself, it is obvious that considerable delays may sometimes arise be- tween the placing of the order in the commission house and the appearance of the quotation on the tape. Furthermore, it is often good brokerage for the broker to wait, as Wilkins did, hefore executing a customer’s orders. Smith was saved %% on his stock through just such a delay. Yet if Smith, after placing his order, had begun at once to watch the ticker he might have thought that the very first subsequent quotation really represented the purchase of his own stock. If, while his srder was en route to the floor, Steel should have sold at 14934 or 149%4, he would not in consequence be justified in leaping to the conclusion that he had suffered an injustice when he received his confirmation of his own transaction at 150. Inactive Stock Post.— With unusually inactive stock issues, the above procedure followed with active stocks would not be aqually satisfactory. In 1927, special methods for dealing in sich inactive shares were inaugurated by the Exchange. A spe-

Access restriction

Copyright

fullscreen: The work of the Stock Exchange

Monograph

Chapter

Table of contents

Download

Monograph

Chapter

This page

Image fragment

Citation links

Citation recommendation