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

330 THE WORK OF THE STOCK EXCHANGE thus be proved by the total of 2,400 shares of stock appearing on both sides of the sheet. Recently, such balances have been entered and handled on separate sheets in order to facilitate the subsequent work of the Day Branch; for the sake of sim- plicity, however, the specimen clearing sheet here used has heen made out in the old way. The Cash Extensions.—Beside the entry for the stocks is a column for the prices at which they were bought and sold. Ordinarily this column is not filled, since the amount of the cash extension next to it gives this information. To make the sheet more intelligible to the layman, however, the prices have been entered in the typical sheet in question. The cash exten- sion represented by each stock item is, of course, determined by multiplying the price by the number of shares; 100 shares of Reading at 10434 are worth $10,475; 100 shares of Steel at 150 are worth $15,000, etc. The Stock Clearing Corporation will direct Jenkins & Co. to receive and deliver, not all the stocks it has bought or sold, but only the stock balances. Thus, Jenkins & Co. will have only 300 instead of 2,200 shares to deliver and obtain payment for, and only 200 instead of 2,100 shares to receive and pay for. But Jenkins & Co. cannot tell to what firm the Stock Clearing Corporation may, direct it to deliver its balance of 300 Steel, or from whom to receive its balance of 200 Reading. Consequently, it would be at a loss to know what price to put upon these stock balances, were it not for the use of the “de- livery prices” already mentioned. On this particular day the delivery price is 150 for Steel, and 105 for Reading. Conse- quently, Jenkins & Co. puts down on its sheet $45,000 as the value of the stock balance of 300 Steel it has to deliver, and when it delivers this stock to the firm or firms indicated by the Stock Clearing Corporation it will expect this sum in return for its stock. Also, Jenkins & Co. will pay $21,000 for the 200 shares of Reading which it has to receive.

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