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 XII. Comparison and security clearance

Collection:: Economics Books

CHAPTER XII COMPARISON AND SECURITY CLEARANCE Only Negotiation of Contracts on the Exchange.—The New York Stock Exchange system consists of four essentially different parts:* (1) its floor, or market; (2) its central clearing and settling mechanism; (3) its commission houses through which the public has access to its market; and (4) its administrative organization. Previous chapters have analyzed and described the first of these parts—the Stock Exchange floor where its members, as specialized brokers and dealers, make contracts with each other. It is now necessary to pro- ceed to the consideration of the second part of the Stock Ex- change system—its subsidiary Stock Clearing Corporation where these Stock Exchange contracts are cleared and settled. In Chapter VI we watched Jenkins and Wilkins, two com- mission brokers, effect a sale of 100 shares of Steel common at 150 on the floor of the Stock Exchange. It is highly im- portant to notice that they exchanged no actual stock certificates or money there, but simply made a contract to deliver stock and pay money later. Since every sale is in reality an exchange of money and goods, Jenkins as the seller contracted to receive $15,000 as well as to deliver the 100 shares of Steel, while Wilkins as the buyer contracted to deliver $15,000 as well as to receive the 100 shares of stock. As we saw, each broker made a report of the transaction, which was sent to their own respective offices by their telephone clerks. It was then left for their offices, and not for Jenkins and Wilkins person- ally, to see that the money and the stock involved by this contract should be properly paid and delivered. The New York Stock Exchange has a “daily settlement” 1 See Chapter III, p. 84.

Access restriction

Copyright

fullscreen: The work of the Stock Exchange

Monograph

Chapter

Table of contents

Download

Monograph

Chapter

This page

Image fragment

Citation links

Citation recommendation