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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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Chapter VII. Credit transactions in securities

Collection:: Economics Books

104 THE WORK OF THE STOCK EXCHANGE occasionally develop in the money market, for, as we have already seen, its members usually go to the banks when they need funds, just as any other customers of the banks do. The banks, in turn, can only minimize, without being able to pre- vent, these shortages of money, which are normally produced by far-reaching and profound economic causes, not merely in all parts of our own extensive country but all over the world. The Stock Exchange, however, has for a long time endeavored to prevent violent fluctuations in call loan interest rates which result from a surplus or a shortage of funds in the money market. Efforts to Prevent “Corners.”—The Stock Exchange is equally anxious to prevent any shortage of stock, since this may result in a “corner.” Its Committee on Stock List, to begin with, makes a thorough examination of the distribution of the stock of every company that applies to list its securities on the Exchange, in order to prevent trading in any stock which is largely held by a single individual or interest.'? Its Committee on Quotations, through the extensive ticker service under its supervision, sees that almost instant and nation-wide publicity is given to transactions in all securities listed on the Exchange. Furthermore, once it is clear that a corner has developed in any listed stock, the Governing Committee of the Exchange promptly prevent$ further trading in it on the Ex- change by striking it from the list. In every such case, the interest of the Stock Exchange is identical with that of the public in maintaining on its floor a market for securities which shall at all times be free and open. In spite of occasional excep- tions, it is rare that an acute shortage of either money or stock really arises on the Stock Exchange. Thus we see that, as operations, margin purchases and short sales are identical with the purchases or sales on credit which are of universal occurrence in every line of modern business, which have on the economic side powerfully and profoundly 12 See Chapter IV. 0. 107. and Appendix VIId.

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