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 273 the definitive bond certificates are as yet printed. In the latter case, trading in the Exchange bond market may be conducted by contracts calling for the ultimate delivery of the bonds “when, as, and if issued.” Thus a chance is given for public opinion to express itself as to the price of the new issue, and according to circumstances the Stock Exchange quotation may rise above or fall below the price at which the new issue was offered to the public.*? The Stock Exchange bond market, by reason of its superior organization, also acts as a “shock-absorber” to the rest of the New York bond market, not only when all, but also when indi- vidual, bond issues become unusually speculative. Sometimes single bond issues will suddenly acquire hazardous and uncer- tain qualities, and their primary market will speedily shift from the outside market to the Stock Exchange market. Finally, the Stock Exchange bond market offers generally unequaled facilities to the small, average individual investor. Due to these facilities, he can review the field of bond invest- ment intelligently, select the bonds best suited to his investment needs, and purchase them through a Stock Exchange firm under standardized regulations especially designed to protect him. While the small investor may and often does purchase bonds direct from non-Exchange member dealers, he must select his seller with much more discretion, since he is not protected by the intermediary Exchange bond broker. Both the organized character of the Stock Exchange bond market and the bond ticker service which it maintains, give him superior assurance as to the fairness of the prices of his purchases or sales. So small are the Exchange bond commission rates that endeavors to “save” them by dealing direct rather than through a broker are apt to prove costly in the end to the inexperienced bond Investor. The ever-present risks and lightning changes of the stock market, its thrills of optimism, and its fits of utter dejection, 12 See Chapter IV, p. 91

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