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

THE ODD-LOT BUSINESS limited orders for odd-lots are executed at their limits, except in cases where they can be executed at 14 away from the first subsequent sale. Furthermore, if his order limited at 80 were permitted to be executed at 7914, he might in many cases be obtaining better treatment on his 20 shares than if he had ordered 100 shares. For had he ordered 100 shares at this particular time, his order would have most likely been executed at 80, particularly if it had been given to a specialist tc execute. Such practice would work an obvious injustice to buyers of 100 shares as compared with buyers of odd-lots. And if it generally proved more advantageous to buy or sell stocks in odd-lots rather than in roo-share lots, it would be impossible to maintain the trading unit of 100 shares, the necessity for which has already been pointed out. In case, however, the price of General Motors stays above 80 throughout the day on which the order is given, but opens the next morning at 794, or below the limit of 80 set by the customer, the latter would then get his 20 shares of stock for 7998, or Yg above this first sale: for this price, although less than his limit of 80, is nevertheless slightly higher than the price the 100-share customer at that moment would have to pay. Stop-loss orders are executed 4 (or 14, in case of a high- priced stock) from the first 100-share sale which puts the stop order in force. To take the case of a customer who puts in a stop-loss order to sell 50 shares of U. S. Steel at 200, if Steel sells first at 20074 and then at 199)2, the order is executed at 19914. 245 Mechanical Limitations of the Ticker Service.—Many customers after placing orders with their brokers to purchase or sell odd-lots of stock linger in the offices to watch the ticker's record of 100-share sales (Figure 18) upon which, as we have seen, the prices they must pay or take for their odd-lots is

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