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

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Document type:: Monograph

Structure type:: Chapter

Title:: Chapter X. The bond market

Collection:: Economics Books

THE BOND MARKET 271 their less active market, bonds could not ordinarily be borrowed in this way, and consequently they usually could not be sold short for “regular way” delivery on the next full business day.’ Accordingly, in 1923 the Exchange inaugurated a plan for the delayed delivery of bonds. It was arranged’ that in the bond market, “regular way” dealings should still provide for the delivery of bonds upon the full business day following the day of contract, except when the seller states at the time of closing the transaction on the floor of the Exchange that his bonds are sold for delayed delivery; in this latter case, the delivery should be made upon the seventh day following the day of contract, but may be made on any full business day prior thereto, upon one day’s written notice being given by the seller of his intention to do so. This plan has provided a much- needed flexibility to the Stock Exchange bond market, and is frequently utilized each day. Economic Functions of the Bond Market.—It has already been pointed out that the bond department of the Stock Ex- change is not a primary market to the same extent as is the market on the Exchange for shares. From a functional stand- point, therefore, the Stock Exchange bond market must be considered not only as a primary market—which it occasionally is—but also as a public market, dependent upon the outside private market and sharing with the latter its actual economic functions. When heavy liquidation or other causes of strain in the bond business arise, or when economic circumstances impart an unusual speculative quality to all bonds, the outside or “over- the-counter” bond market tends to dry up, and bond dealings tend to concentrate in the Exchange bond department as a pri- mary market. At such times the economic functions of the Exchange bond market are generally similar to those con- sistently exercised by the share market on the Exchange: these ® See Annual Report of the President, 1923-24, pp. 26-28. © See Appendix Xa.

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