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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Document type:: Monograph

Structure type:: Chapter

Title:: Chapter VIII. The floor trader and the specialist

Collection:: Economics Books

CHAPTER VIII THE FLOOR TRADER AND THE SPECIALIST Function of Dealer in Maintaining Continuous Market. — In Chapter VI we saw two commission brokers, Jenkins and Wilkins, meet at the Steel post and conclude a sale of 100 shares of U. S. Steel common stock. This stock was purposely selected in that imaginary transaction, since its comparatively broad and continuous market often permits of just such trans- actions between commission brokers. In less active and steady stocks, however, it might be impossible for one commission broker to effect a trade directly with another. Commission broker Jenkins might obtain his order in such a stock and pro- ceed to the post where it was listed; but the chances are he would not happen to find another broker like Wilkins waiting there to buy his customer’s stock at just that time, or at a mutually satisfactory price. Of course, it takes two to make a bargain in the Stock Exchange as elsewhere, and if Jenkins cannot find a buyer he cannot sell his customer’s stock. As a matter of fact, if Exchange Commission brokers could sell only to other commission brokers, cases would constantly arise where sales could not be effected for very considerable periods of time, with the result that listed securities on the Exchange could not possibly possess their present negotiability and com- paratively small daily fluctuations in price.? In the process of obviating such inability on the part of sommission brokers to sell or to buy immediately at a price, several classes of dealers have arisen on the floor of the Ex- change, who, in the absence of a broker with just the right sort of order, stand ready to intervene in such transactions, and at " 1See Appendix VIITa, and Chapter II, p. 48. 20

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