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 X. The bond market

Collection:: Economics Books

THE BOND MARKET 25; the bondholders. In some cases, indeed, American bond issues are issued both in bearer and registered form, but are not fully interchangeable; in such cases, quotations for each form must not only be separately made, but may differ somewhat from each other. American bearer or coupon bonds of course require no transfer and pass by delivery, since they state that the given debtor will pay interest and repay principal “to bearer.” While bearer bonds thus avoid delays, formalities, and expenses of transfer and are thus more easily negotiable, they also subject their holder to greater danger if he is dispossessed of them by theft or loss.® Payment of interest is obtained upon them by cutting off the attached coupons when they are due, and col- lecting their amounts through a bank or a brokerage house. An American registered bond, on the other hand, is payable to the individual or institution whose name is inscribed on its face; like the American registered share certificate, therefore, such a registered bond requires transfer when this ownership changes. To effect such transfer the registered bond certifi- cate, like the registered share certificate, has an assignment form printed on its back, which the holder can assign in blank. Since registered bonds have no coupons attached, interest is periodically remitted to their nominal holders by check, as with registered shares. At maturity the holder of a registered bond must present it properly transferred to bearer before jts principal amount can be paid to him. When a broker or dealer effects a sale in the bond market on the New York Stock Exchange, it is understood that the bargain is for a bearer bond, unless the contract specifically was made for a registered bond. Separate quotations are made for the two forms of bond, as the one is not a good delivery for the other. Since the primary price is usually made for the bearer bond, the price for a registered bond of the same issue is apt to prove a little higher to the purchaser and a little lower to the seller, than this current price for the bearer form, ? See Chapter I, p. 28, and Appendix VId

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