The model stock plan

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.

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Document type:: Monograph

Structure type:: Chapter

Title:: Chapter VII. Credit transactions in securities

Collection:: Economics Books

WHAT IS A MODEL STOCK? 41 To get clearly in mind the distinction between a BB and an MP, let us consider a typical example. A silversmith may take $10 worth of silver and make it into a plain silver dish. He will get $14 for it. Another silversmith may take only $8 worth of silver to make the same kind of dish; but his workmanship is superior in style and artistic ideas, so that his dish is not plain. He also gets $14 for his product. When the dishes are put side by side and shown to customers, one will feel herself better served by getting the dish that has $10 worth of silver but a small amount of art; another will prefer the dish with only $8 worth of silver and more art. The first gets exactly the kind of article meant by a BB; the second, on the other hand, gets'an MP. There is the distinction. Ideas make the MP. Inirinsic worth makes the BB. Of course, it is an error to assume that because the price of a BB is right, the style must or may be wrong. It is clear that both price and style must be right to sell the great quantities. It is perfectly clear, moreover, that the price cannot be right if the style is such that people will not buy in quantities sufficient to get us the lowest production cost. We must keep clearly in mind at all times that goods to be sold to the masses in mass quantities cannot be what the masses consider ugly. As excellent an instance as history affords is the dwindling of Ford’s sales of his Model T when competition was supplying a far better looking car at a com- parable price. As soon as Ford came out with the Model A, conforming to the best in small automobile style, Ford sales once more shot skyward. Merely material value without good looks will not make a successful BB, any more than good looks without inherent value will make a satisfactory MP. An MP should carry a larger gross profit; this contains no element of profiteering but is a reward to the merchant for applying to it art, style, science beyond the bare necessities of trade. If our MP does not sell so well as our BB, we shall make a smaller average percentage of profit on the two items under this arrangement. We may make larger total profits than if we had no BB or MP, however, since a BB should be profit-

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