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

228 THE WORK OF THE STOCK EXCHANGE He opens the stock, 400 shares at 681%, by selling 200 shares of his stock to be sold at the market to Macy, 100 shares more of it to Wells, and still another 100 of it to Cooper. In addi- tion to the remaining 100 shares to sell at the market, he now has 400 additional market orders to sell, owing to the fact that the first sale at 681% made active the stop orders of Doe for 100, Nash for 100, and Roe for 200. He next sells his last too shares of original market stock to Dunn at 68, thereby increasing his market selling orders to 8oo shares by making active Smith's stop order at 68 to sell 400 shares. All his origi- nal market orders to sell have, however, now been executed. He next sells Doe’s 100 and Nash’s 100 to Doe at 67, and then 200 of Smith’s stock to Ray at 66. But this latter sale “touches off” King’s 200-share stop order at 66, and thus the specialist still has 600 shares to sell at the market. The third 100 of Smith’s stock is next sold to Field at 65, thereby mak- ing Platt’s 100-share stop order at that price a market order. The specialist still has 600 shares to sell at the market, namely, Smith’s last 100 shares, Roe’s 200, King’s 200, and Platt’s 100. These are all sold to Cole at 64, thus cleaning up all the orders on the book except West's 100 to sell at 73, which cannot under the circumstances be executed at all. Soon the tape gives the report of these transactions: 400 at 6814. . . . 100 at 68. ...200at67. ...200atdb. ... 100at 65 ...600 at 64. The last sale, of course, includes 100. 200, 200, and 100 shares to sell. But what does Doe, with the stop order at 70, say when he is told that his stock brought only 67, after seeing 400 sell at 6815 and 100 at 687? What does Roe say when he learns that his 200 shares went for only 64? Neither is Smith pleased to receive the reports from his 4o00-share stop order at 68, which show sales at 66, 65, and 64. Such executions could not be explained, and apart from the endless quarrels and dissatisfac- tion they would cause to sellers, the buyers would meanwhile be treated unfairly. The fairest way to both buyers and sellers is. therefore. to open the stock 1,600 shares at 64. And this is

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