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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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Chapter XV. The commission house

Collection:: Economics Books

THE COMMISSION HOUSE substitute some other equally valuable security or securities in place of it, obtain the certificate, and deliver it to Blank, on receipt of his check for the sum which he still owes upon it. 421 The Practice Regarding Transfers.—One frequently trou- blesome detail, however, has been disregarded in the above operations—the matter of transfer.’ So long as a share cer- tificate is irrevocably assigned by a Stock Exchange house, it constitutes a good delivery. Hence, stock held by a firm on marginal account for its members, if so assigned, may be made out in the name of any firm, and still be readily salable or con- stitute satisfactory collateral for a loan. If the stock is non- dividend-paying, there is little purpose in having it retrans- ferred every time it changes hands. But if it pays dividends, they will, of course, be paid to the firm or individual in whose name the stock stands. In consequence, it is customary for firms holding stock on margin account to have it transferred into their own name before the corporation books close for dividends, in order to receive the dividends accruing on the stock. The brokerage firm can still borrow money upon a stock in transfer, however, if it turns the certificate in at the Transfer Department of the Stock Clearing Corporation and obtains in exchange for it an assignable transfer receipt.*® Ordinarily, bonds are sold with accrued interest added to the selling price.’®* In the case of dividend-paying stocks, as the day approaches when the books of a corporation are closed for the payment of a dividend, the stock tends to sell at a higher price which roughly equals its regular price at that period, plus the dividend about to be paid. Once the books are closed, how- ever, the new purchaser of the stock will not receive the divi- dend, which will go to the holder of the stock at the time when the books were closed. Hence, the amount of the dividend to be paid is promptly subtracted from the price of the stock, 16 See Chapter XI, p. 294. 17 See Chapter I, B 26. 18 See Chapter XIII, p. 380 19 See Chapter X, p. 267

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