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

252 THE WORK OF THE STOCK EXCHANGE tant factor on the floor of the New York Stock Exchange, no odd-lot house has ever yet failed. Economic Significance of the Odd-Lot Business.—In conclusion, something of a more general nature should be added concerning the broader economic significance of this sys- tem for the execution of odd-lot orders on the New York Stock Exchange. Small and individually inconsiderable as many odd-lot sales and purchases are, their aggregate amount is very large. It was recently estimated that, on the average, about 30% of the total sales made on the floor of the Exchange arose from odd-lot transactions. But this percentage naturally varies from time to time, and on certain occasions has amounted to possibly 60% or even more. To the small investor particu- larly, the Exchange is able through its odd-lot machinery to render a very real and far-reaching service. Its present odd-lot system has placed the retail buyer and seller more nearly upon a plane with the wholesaler in security dealings than is the case in almost any other line of modern business. The retail or odd-lot prices are founded directly upon wholesale or 100-share prices, and are, as we have seen, for the most part only 14% or 14 % away from the wholesale prices. The New York Stock Exchange makes every effort to give the small investor and trader in odd-lots every essdntial protection which is afforded the buver or seller of 100-share lots. The Odd-Lot Dealer as a Factor in Distribution.—The odd-lot machinery of the Stock Exchange also renders no small assistance to the large listed stock corporations, in enabling them to achieve a broad and stable distribution of their shares among the investing public. Corporations have long realized that it was to their decided advantage to distribute their shares evenly in small amounts among many stockholders, rather than simply in large amounts among a comparatively few holders. Such indeed has been the general trend in the recent distribu-

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