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

222 THE WORK OF THE STOCK EXCHANGE order is effective. “G.T.C.” indicates orders ‘‘good until countermanded”; “M.,” “orders for the month”; “Wk.” “orders for the week” ; if no sign at all is added, an order good for the day only is indicated. Stop orders are denoted by “Stop.” It will be recalled that stop orders are not limited at the price set, but simply become market orders when that price is reached.’® In addition to his book, market orders are handed to the specialist on slips made out by the brokers’ telephone clerks, and are not inscribed in his book but handled separately. The specialist’s book is, of course, not shown by him to others, except in case he is compelled to leave the floor, when he tem- porarily entrusts it to some one person—either another spe- cialist at the same post or some other member. The specialist, with his book and his market orders, is a factor of constantly varying importance in the market for each stock. Sometimes, especially in the more inactive stocks, he may have almost all the orders for a given stock, and will consequently make the market for it. But, of course, anyone at any time can take the market away from the specialist by quoting closer prices. Furthermore, there are sometimes sev- eral different specialists in a given stock, competing with each other. Moreover, the floor trader will, under normal circum- stances, compete with him to render prices closer, if there is a prospective profit of only 14% to be gained thereby. On the other hand, a majority of orders in the stock may drift into the hands of brokers in the crowd—in which case the specialist ceases to be a dominant factor in the market for the stock. Before the Opening of the Market.—We are now pre- pared to follow with readier comprehension a detailed and typical cross-section of the specialist’s daily work.*® For this purpose an active opening had best be selected, since this point in the day creates the most serious problems and misunder- standings. In order that the opening may be sufficiently active, 19 See Chapter VI, p. 159. 20 For the subsequent practical examples of the specialist’s work, the author acknowl. -dees his indebtedness to the address of Mr. Erastus T. Tefft previouslv cited.

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