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

242 THE WORK OF THE STOCK EXCHANGE from his customer at the bid price, or sell them to his customer at the asked price. If, for instance, the odd-lot dealer receives an order to buy or to sell 20 shares of Rand Mines at once, he hastens to the appropriate post and finds that the stock is offered at 35%, and that 3474 is bid for it. Without waiting for the brokers who are bidding for or offering the stock to effect a compromise and make a sale at some price between these two figures, the odd-lot dealer may buy the 20 shares of Rand Mines from the commission broker at the bid price of 347% or may sell them to him at the asked price of 35%. Unless, however, the odd-lot dealer is directed to obtain an in- stant execution based on these bid and asked prices, it is usually understood that an order for odd lots should be executed }% from the price established by the next 100-share sale. “Quarter Stocks.”—Naturally the higher the price of a stock, the greater become the financial commitments and risks of the odd-lot dealers who purchase or sell it. For this reason, odd-lot dealers make it a practice to sell high-priced shares at 14 instead of 14 over, and to buy them at }4 instead of 1% under, the next 100 share sale. An alternative sometimes pre- ferred by customers for odd-lots of such stocks is to purchase them from the odd-lot dealer at 14 over the “asked” quotation, and to sell them to him at 7% under the “bid” quotation. The point of differentiation between what constitutes high and low priced stocks for the purpose of odd-lot dealings, is subject to variation according to current circumstances. The Stock Exchange itself does not intervene in this situation, since it naturally could not undertake to dictate to its members the prices at which the latter can deal on their own account. Odd-Lot Transactions “at the Opening.”—In determin- ing prices for odd-lot transactions, confusion occasionally arises because of the 100-share quotations themselves. When a market order—that is, an order which does not fix any spe- cific price at which the odd-lot will be sold or bought—is given

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