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 4/ closing hour of 3 p.m. Naturally, too, the stock tape is more apt to be delayed in printing quotations for active than for inactive securities. Owing to such occasional delays the cus- tomer who has just sent in a market order for 10 shares of Bethlehem Steel may see on the tape some minutes later a record of the sale of 100 shares of Bethlehem at 93. He will naturally suppose that he must pay 9314 for his stock, yet because of the slowness of the ticker the 100-share transaction at 93 may have occurred long before the odd-lot dealer on the Exchange has even received the customer’s order. Thus, while the dealer is waiting for the next sale the customer imagines that the whole transaction has been concluded. If the next sale should be at 9374, the customer must, of course, pay 933% for his stock, and unless he realizes that the ticker was behind the sales, he will be apt to conclude hastily that he is paying 14 too much. If, on the other hand, the next sale is at 9215 and he gets his stock for 9254, he may wonder whether a mistake has been made, but—at least according to the general run of human nature—he probably will say nothing about it. Misunderstandings Regarding “Bunched Sales.”—Some- times, too, a number of sales of one security are run off on the tape together, although in reality sales of other stocks have occurred between them. This occasional “bunching” of sales of one stock on the tape not only creates the illusion that stock market activity proceeds in violent outbursts of dealings in one after another issue, but it also is apt to mislead the odd-lot investor as to the exact 100-share quotation upon which the price of his odd-lot transaction has been based. Originally this “bunching” of sales on the tape arose from the fact that sales were reported to an operator of an electrical key-board who printed them on the ticker, from several dif- ferent stations on the floor; being after all flesh and blood, this operator in an active market would be compelled by the system under which he worked to print reports on the tape from each

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