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 VIII. The floor trader and the specialist

Collection:: Economics Books

THE FLOOR TRADER AND THE SPECIALIST 203 their own risk “make a market” for the stock in question. In the main, the work of these dealers is speculative—as indeed the work of a dealer of any sort is bound to be. They will buy stock from a broker at a slight concession, or sell it to him at a slight advance, on their own responsibility and in the hope of obtaining a profit later through the sale or purchase of the stock, as the case may be. When, for example, Jenkins goes to the post where U. S. Rubber stock is traded in with a cus- tomer’s order to sell 100 Rubber at 50 and finds no broker ready to purchase from him, a dealer may buy his stock, and a little later, if fortune favors, sell it for a slight profit. Dealers are fundamental to all markets in the world, and it could only be due to artificial conditions if we did not find them equally necessary to the continuous market made for securities on the floor of the Stock Exchange. The Floor Trader.—One of the most important types of Jealers on the Stock Exchange is the so-called “floor trader.” He is a professional speculator who trades in stocks for small, quick profits. Being a member of the Stock Exchange, he can execute his own orders and thus escape paying commissions, which the speculating non-member customer in a broker's office must pay. For reasons presently to be explained, the number of Exchange members ordinarily operating as floor traders is today much smaller than before the war. A graphic sketch of the typical floor trader has been given by a former governor of the Stock Exchange :2 These gentlemen afford an interesting study. They do not accept orders; each man is in business for himself. They entertain no illu- sions, and they recognize no alliances with each other. Each one follows his own inclinations, and does not permit himself to be moved by tips, or rumors, or gossip, or sentiment. He scoffs brazenly at all forms of “inside information.” His power of observation is keen, and his habit of analysis and deduction is wonderfully developed. In the surging crowd around an active stock he sees things with micro- scopic eye, and acts with surprising promptness; once his conclusions 3 Van Antwerp, p. 285.

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