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

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Document type:: Monograph

Structure type:: Chapter

Title:: Chapter IX. The odd-lot business

Collection:: Economics Books

THE ODD-LOT BUSINESS 235 certificates of lesser denomination and selling them to commis- sion brokers to fill such odd-lot buying orders as may have come into the market through the latter from the general public. On the other hand, the odd-lot dealer stands equally ready to purchase at any time such odd-lots of stock as may be offered by the public through their brokers. When the dealer’s odd-lot purchases have aggregated 100 shares, he can readily resell them as a round lot in the open market. Thus the odd-lot dealers act as jobbers for the execution of buying and sell- ing orders involving less than 100 shares which commission brokers receive from the public. Owing to the extensive equip- ment and efficient operation of the odd-lot houses, these small orders, whether for a purchase or a sale, can be placed by a customer in a commission broker’s office, and then be executed almost instantly on the Exchange floor. A Typical Odd-Lot Transaction.—Perhaps the best method of explaining the exact nature and methods of the odd- lot business is to describe a typical transaction from beginning to end. When a customer gives his order for the purchase of 20 shares of Sun Oil common stock to his commission broker, the latter at once transmits it to his telephone clerk on the floor of the Exchange. Some commission houses, either because of the large volume of their total transactions, or because of a tendency to specialize in just this odd-lot brokerage business, maintain on the Exchange a separate telephone booth for their odd-lot orders. With other commission firms, the order will be sent by the same telephone over which orders for 100 shares are transmitted. In either case, the odd-lot order is speeded from the commission office to the board room by precisely the same methods described in Chapter VI in the instance of a 100-share order. Transmission of Odd-Lot Orders.—The telephone clerk might, of course, signal for the floor member of his firm on the annunciator boards, and turn the order over to him to execute

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