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 IX. The odd-lot business

Collection:: Economics Books

240 THE WORK OF THE STOCK EXCHANGE lots of 3, 14, 8, 20, 25, and 30 shares of U. S. Steel preferred, he sends to the transfer office a 100-share certificate of that stock ; this is thereupon canceled, and the odd-lot dealer receives in exchange six odd-lot certificates, each for the stated number of shares. This process of exchanging odd-lot certificates for 100- share certificates is not always necessary, and consequently by no means invariably employed. Odd-lot certificates aggregating 100 shares are considered a “good delivery” for a 100-share sale of stock, and frequently odd-lot houses will deliver to a purchasing commission broker odd-lot certificates to the total amount of 100 shares, instead of a 100-share certificate. Nevertheless, the latter has the right to demand that the stock be delivered to him by transfer—in which case he would, of course, get a 100-share certificate. Deliveries of odd-lot certificates to out-of-town customers which require transfer into a new name are frequently delayed by the operations of the transfer offices. The odd-lot dealer puts the stock into transfer, but cannot get it out again quickly to deliver to the buying broker. Meanwhile, the out-of-town customer becomes impatient and is apt to blame the odd-lot dealer for a delay inevitable with registered securities requiring transfer. Deliveries, Commissions, and Profits.—It should be noted that the odd-lot house never comes directly into contact with the public, but deals with it only through the commission brokers, who in odd-lot transactions act as middlemen. In consequence, the odd-lot dealer delivers the certificates of the >dd-lots of stock which he has sold to the commission broker, who in turn delivers them to his customers. Similarly, the odd-lot certificates which the customers sell, come to the odd-lot dealer only through the commission broker. The commission broker charges a commission for his services to the odd-lot customer exactly as in the case of the purchase or sale of round lots of stock. The exact amount of this commission varies

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