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

Usage license:: Get license information via the feedback formular.

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Document type:: Monograph

Structure type:: Chapter

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

Collection:: Economics Books

THE FLOOR TRADER AND THE SPECIALIST 213 broker, and not until the latter has abandoned it does the spe- cialist get it. Thus, the specialist’s business has its drawbacks, like everyone else’s—otherwise everyone on the Exchange would want to be a specialist and nobody would be left to fill any other function. Odd-Lot Business of Specialist.—Formerly, before the present extensive odd-lot houses had evolved, the specialist used to execute in his few particular stocks fractional orders from 1 to 99 shares as a broker for the odd-lot dealers of that time. This commission business in odd-lots materially assisted the specialist during the earlier and financially leaner years of his existence, when the turnover in the market was small and his business was scanty. But with the growth of Exchange transactions and the increasing 100-share business undertaken by the specialist, his odd-lot business became less welcome and in the end suffered from unavoidable and natural discrimina- tion. In consequence, as will be related in the next chapter, the present odd-lot houses naturally evolved. Some few specialists, however, still execute orders for odd lots in the same way as the present-day odd-lot dealer. Al- though the aggregate bulk of odd-lot orders thus executed is not a large factor today, nevertheless, the specialist, among his other functions, is always a potential if not an actual com- petitor to the odd-lot dealer, and as such exerts a salutary even if a somewhat negative effect on the odd-lot business of the present time. This fact perhaps accounts for a common ten- dency on the part of the public to confuse the specialist with the odd-lot dealer. “Crossing” Orders.—There is still another constitutional restriction'* upon the specialist as a broker which deserves attention. Even more frequently than is the case with the com- mission broker, he will find on his book (of which more anon) orders to buy and to sell the same amount of the same stock at u See Chapter Xv, B. 23% and Appendix VIITe,

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