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 X. The bond market

Collection:: Economics Books

260 THE WORK OF THE STOCK EXCHANGE life of the syndicate agreements under which the new security was issued. The second section of the New York bond market is called the “outside” or “over-the-counter” market, while its third section consists of the bond market on the New York Stock Exchange. The buying and selling in the “outside” market is conducted primarily over the telephone between New York bond dealers and brokers, with dealings also entering the mar- ket by telegraph or long-distance telephone from other cities in the country, or by cable from abroad; to a minor extent pub- lished advertisements also play a part here. There is no defi- nite membership in this “over-the-counter” market; the leading New York participants in it are the insurance companies and savings institutions, trust companies, commercial and invest- ment banks, under certain conditions the Federal Reserve Bank of New York, investment trusts and finance companies, indi- vidual estates, foundations or private capitalists, and numerous dealing and investment houses. Many member-firms of the New York Stock Exchange engage exclusively, largely, or only occasionally in bond dealings. The “outside” market, not being really organized, operates rather by custom and special nego- tiation than by enforceable rules and regulations. : The growth of this “over-the-counter” market was facili- tated by the development %of the telephone and the rise of powerful investment companies and firms in New York. It has become the great wholesale or jobbers’ market for bonds, and is particularly notable for its large individual transactions. Compared with it, the bond market in the Stock Exchange is normally thin and concerned principally with retail transactions. The development of the outside bond market was also due to the stable price tendencies of most good bonds; since bond prices do not fluctuate rapidly as a rule, there is time enough to negotiate over the telephone without much danger of “missing the market”’—which would happen if the same thing were tried in active stocks. Thus a public and instantaneous organized

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