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 243 for an odd-lot by a customer before the opening of the market, it is executed by the odd-lot dealer at 14 (or with special securi- ties, 24) from the first 100-share sale that day—or, as it is commonly called, the “opening” sale. It sometimes happens, however, that this opening sale of 100 shares, upon which the price for the odd-lot is based, is difficult to determine. In active markets many orders accumulate in the commission brokers’ offices overnight for execution at the opening. There may, for example, be a large crowd waiting around the post of an active stock like Bethlehem Steel common at 10 A.M. when the gong announcing the opening is rung. In the immediate roar of bids and offers two or more simultaneous first sales might occur, at slightly different prices.” If no one can tell exactly what the opening price for 100-share lots is, naturally the odd- lot dealer cannot tell what price he should charge or pay his customers. In such cases, however, the representatives of the various odd-lot houses about the Bethlehem Steel post quickly determine a fair opening price for Bethlehem Steel by averag- ing the various simultaneous quotations. If two opening sales for 100 shares of Bethlehem Steel common, for example, should occur simultaneously at 95 and 9514, in all probability the opening price would be declared to be 95%, and on this price odd-lot purchases or sales of Bethlehem Steel common would be based. Occasionally, too, orders come to the odd-lot dealers to buy or sell an odd-lot of stock “‘at the close.” Such orders are ordi- narily executed on the final bid and asked quotations of the day. It would, of course, be impracticable to execute odd-lot orders at 14 from the last sale of 100 shares of the given stock that day, since with inactive stocks the last sale may occur early in the morning. Furthermore, the last sale of a stock might be made at 50, while the closing bid and offer for it might be 48-49. The odd-lot dealer must also reserve the right to sell odd-lots against full lots, and vice versa, and he cannot be "7See Chapter VIII, p. 218.

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