The work of the Stock Exchange

Bibliographic data

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

268 THE WORK OF THE STOCK EXCHANGE buyer; at once after such time the price of the share normally drops by the amount of the current dividend payment. Most bonds on the New York Stock Exchange, however, are quoted “and interest”’—that is, one pays not only the quoted price for the bond but an additional sum representing accrued interest upon it to date from the last coupon payment date. Thus a 1% bond with semi-annual coupon dates of January 1 and July 1, if quoted at go on April 1 will actually cost the purchaser $900 plus about $10 accrued interest for three months. The seller of course receives the accrued interest which the buyer pays. Income and adjustment bonds, however, are dealt in on the Stock Exchange “flat” like shares, since like shares their inter- est does not have to be paid to avoid default. Bonds in default are also dealt in “flat,” since in this case no interest pay- ments are actually being made upon them. British Govern- ment sterling bonds listed on the New York Stock Exchange are also quoted “flat,” to keep New York quotations as far as possible in accord with those of their primary market on the London Stock Exchange, which ordinarily quotes all its listed bonds “flat,” instead of “and interest” like the New York Stock Exchange. Composition of the Band Crowd.—Each morning, before the opening of the market at 10 A.M., “the bond crowd” takes its stand in the bond market, and remains there dealing in bonds until the market officially closes at 3 p.m. week days, or at 12 noon Saturdays. The bond crowd is ordinarily composed of about thirty Stock Exchange members, most of whom spe- cialize in bonds either as brokers or dealers, or both. Owing to the growth of the outside dealers’ market in the last two decades, however, the Stock Exchange bond market has to an even larger proportional extent tended to become a brokers’ rather than a dealers’ market. Also, the former tendency there for certain Exchange members to specialize as dealers in certain hond issues 1s for the same reason tending to disappear. As

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