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.

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Chapter IX. The odd-lot business

Collection:: Economics Books

THE ODD-LOT BUSINESS 230 The 20-share certificate, after it is obtained from the trans- fer office, is sent to the purchasing broker, who at once pays for it. The broker then delivers the certificate to his customer, and the transaction is concluded. A Sale of an Odd-Lot.—When the customer wishes to sell to shares of Union Carbide stock, the process described above is simply reversed. The selling order is sent over the telephone and through the tubes to the odd-lot dealer, who buys the shares in accordance with instructions accompanying the order. When by such purchasing of many small lots the odd-lot dealer be- comes long of, or accumulates, 100 shares of Carbide stock, he can, of course, either hold them temporarily, or else sell a round lot of 100 shares of the stock to someone at the Carbide post. In this operation, the odd-lot dealer may sometimes stay long of the given stock in varying amounts and for varying periods of time, with the danger of loss if its price declines and a chance for profit if its price rises in the meantime. Work of the Transfer Office.—The methods employed in exchanging odd-lot certificates for 100-share certificates also deserve a word in passing. This exchange is, of course, effected at the transfer office or agency of the corporation in question.® For greater convenience, every listed company has two dif- ferent kinds of share certificates—one for even 100 shares, and the other for less than 100 shares. When, for example, the odd-lot dealer has accumulated by purchase 100 shares of Pennsylvania Railroad, in four lots— let us say—of 17, 13, 20, and 50 shares, he can send these four odd-lot certificates to the transfer office of the Pennsylvania Railroad; and this office, after destroying the odd-lot certifi- cates, will issue to the odd-lot dealer a single 100-share cer- tificate. The reverse process takes place when the odd-lot dealer wishes to obtain odd-lot certificates to make deliveries of odd-lots which he has sold. If, for instance, he has sold odd- ® See Chapter IV, p. 95.

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