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

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

COMPARISON AND SECURITY CLEARANCE 325 tive parties are received by the firm they are then used to check against the entries for them on the firm’s “night sheet” or “clearance sheet.” This sheet, which is thus in process of preparation all day, is therefore a full record of all purchases and sales by the firm of cleared stocks that day. In addition, borrowed and loaned stocks may also appear upon it, as well as the purchases and sales of an Exchange member who is not a clearing member but who clears his transactions through the oiven firm.!® A Typical Day’s Business.—Suppose that on July 1, 1929 Jenkins & Co. has purchased 1,000 shares of Reading, 500 shares of Steel, 600 shares of U. S. Rubber, and 100 shares of Otis Elevator, and has sold 80 Reading, 800 Steel, 600 Rub- ber, and 100 National Biscuit preferred. Since Reading, Steel, and Rubber are all cleared securities, they will be entered upon Jenkins’ “night sheet” and be subject to security clearance, after his transactions in them have all been “compared” by the exchange of exchange tickets. But the Otis Elevator and the National Biscuit preferred are not cleared, and will not be entered or cleared upon his night sheet; after they have been compared by means of “three-way exchange tickets,” they will be delivered without obviation. Similarly, if Jenkins had bought or sold any non-cleared bonds, they would similarly be omitted from his night sheet, compared with “exchange tickets,” and delivered without obviation. On this basis, we must next examine in detail Jenkins’ “clearance” or “night sheet” (Figure 28), among whose items will be found the sale of 100 Steel to Wilkins described in an earlier chapter.'? The Clearance Sheet in Detail. Even at the expense of a somewhat tedious and perhaps puzzling foray into the dreary realm of bookkeeping, this clearance sheet will repay careful study, as it is fundamental to the whole system of stock clear- ance. In the upper right-hand corner there is a line on which See Grapter v1, p04,

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