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 223 at this price, it would not be fair to quote the split opening 0434-9534. Thus the opening is printed on the tape as 3,000 shares from 9434 to 9514. But the 200-share sale cannot simply be disregarded, so “200 sold 9534” is also put on the tape. Meanwhile, orders which were stopped have been exe- cuted at 95 as a fair opening price, but these, as previously explained, are not put on the tape. Returning to the specialist, we find that, in addition to the 2,000 shares, he has crossed 200 more, and has sold 500 besides in the open market. Thus far, after doing everything humanly possible, he has executed all his market orders, and 2,700 out of his 3,100 original selling orders, leaving him 400 more to sell at 95. Meanwhile the ticker reports the opening price as “3,000 at 9434 to 9514,” and every customer who has placed an order within those limits at once concludes that his stock has been sold. The specialist may yet sell out his 400 at 93, his 200 at 9524, and his 400 at 9514, if the market moves in just the right way. But if it grows somewhat dull and prices do not rise again above 93, all the 14 and 14 stock customers, whose orders, of course, cannot be executed under these circumstances, are going to blame the specialist for not being able to sell their stock, and quote the split opening of 9434-9514 as conclusive proof that they have been done an injustice. Split openings also sometimes create a suspicion that somehow the specialist has bought at the lesser and sold at the greater price on his own account. Indeed, years ago, one specialist in an opening of 61-6134 did attempt to buy for himself all the stock he had to sell at 61, and to sell for himself all the stock he had to buy at 6134. He lasted just four days. Execution of Stop-Loss Orders.—Another source of dif- ficulty and misunderstanding arises from the execution of “stop-loss orders.” As has been explained, a stop order becomes a market order when its limit price is reached. It sometimes happens that as stock prices decline on the Exchange, a figure will be reached at which several stop orders will suddenly

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