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 XIII. Security delivieries, loans, and transfers

Collection:: Economics Books

SECURITY DELIVERIES, LOANS, AND TRANSFERS 381 than five days; if so, the old receipt is called in, and a new one is issued. Lenders on security collateral have agreed to accept these receipts in lieu of the actual security certificates which they represent. In this way a Stock Exchange firm may deliver stock certificates to the Transfer Department to be put by it into transfer, obtain from it a transfer receipt, and employ this receipt as collateral for loans until the newly transferred security certificates have been prepared and can be obtained at the Transfer Department. Thus, during periods when large amounts of stock are in transfer, illiquidity is obviated, and no especial strain thereby is thrown upon the capital of Stock Ex- change firms. Since a regular stock assignment form is printed on the back of the receipt, the borrower on security collateral by assigning the receipt to the lender or in blank can enable the lender to sell it in case he wishes to exercise this privilege under a loan agreement ; thus the transfer receipt is “assignable.’ Exchange Receipts.—Sometimes, when an old issue oi. securities is rendered exchangeable for a new issue, a tie-up of the old securities submitted for such exchange may occur. Tc protect Stock Exchange members against this contingency, the Stock Clearing Corporation provides another kind of receipt, known as an “exchange receipt.”*®* Thus (as previously with a transfer receipt) a member can turn his old securities to the Transfer Department, obtain “exchange receipts” for them, and employ these as loan collateral by making assignment on their backs, until the new securities obtained in exchange for the old securities are ready at the Transfer Department; he then obtains the new securities by presenting and surrendering the “exchange receipt.” Temporary Exchange Receipt.—When the Stock Ex- change member wishes (as for example in the case of rights to subscribe) to exchange old securities and money for new 18 See Appendix XIIId

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