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

312 THE WORK OF THE STOCK EXCHANGE system.? In the vast majority of cases, and always unless otherwise stated at the time of negotiation, sales of shares made on the New York Stock Exchange are made “regular way’ for delivery by 2:15 p.M. upon the next full business day after the date of contract. Transactions occurring on Fridays and on Saturdays (on the latter day the Exchange closes at 12 M.) are cleared on Saturday, but settled the following Monday. Under the limitations prescribed in its Constitution,® how- ever, the time which may elapse between the negotiation and the settlement of a Stock Exchange contract, may be deter- mined by special agreement when the contract is made. With a ‘“‘cash” transaction, stock must be delivered and money paid on the very day of negotiation. Contracts may also be fixed “at three days,” for settlement on the third day after negotia- tion. Many bonds, as has been pointed out,* are sold for a “deferred delivery” of seven days. Furthermore, delivery may be arranged according to “buyer’s’” or “seller’s” option for not less than four or more than sixty days. Under a seller’s option, the seller can deliver the stock and demand payment for it on any day within the period of the option, provided he notifies the buyer by 2:15 the previous day, while the buyer during the life of a buyer’s option can similarly pay his money at any time and call for his stock. With bonds,® deliveries are frequently deferred until the seventh day following the date of contract. All these different deliveries except those for “cash” are susceptible of being handled through the Stock Clearing Corporation. Stages of the Security Clearing and Settling Process.— After a security contract is negotiated on the Stock Exchange, there are five basic processes through which it must pass before it is finally settled. First, both buyer and seller must signify to the Stock Clearing Corporation and to each other their agreement as to its essential terms—this process is known as 2 See Chapter XI, p. 276. See Constitution (Rules, Chapter I). See Chapter X, p. 270. See Chapter X. pn. 270.

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