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.

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Document type:: Monograph

Structure type:: Chapter

Title:: Chapter XV. The commission house

Collection:: Economics Books

426 THE WORK OF THE STOCK EXCHANGE ties are made on the Exchange floor, but when such contracts are settled by delivering or paying for the securities. If Blank’s orders were executed on a Monday, for example, the contracts would ordinarily be settled Tuesday, etc., according to the regular daily settlement system employed on the New York Stock Exchange.?° How the Brokerage Commission Is Entered.—Brokerage commissions of Stock Exchange firms are governed by the scale of minimum rates contained in the Constitution ;** these rise as the stock bought and sold is higher in price. The mini- mum rate for 100 shares of a stock selling at $50 and above but under $75 would be $17.50; of one selling at $75 and above but under $100 would be $20; of one selling at $100 but under $200 would be $25; etc. In connection with the purchase of 100 Reading on August 2, the reader will observe that Blank is debited for $11,475. The commission of $25 charged by Jenkins & Co. for making this purchase for him is added to the price of the stock ($11,450) in the debit extension on the statement, instead of being posted as a separate item. On the other hand, the com- missions on sales are subtracted from their cash extension, since such sales create a credit item on the statement. Thus, when Blank sells 100 Columbia Gas at 8014, he is credited with $8,050 less a commission of $20 and sales tax of $4—or with 38.026. The Item of Taxes on Sales.— This matter of the sales tax, already alluded to in its economic aspects,* should also be noticed as it affects the customer’s statement. When Blank sold his 100 Southern Pacific, a tax of $4 was deducted from his resultant credit along with commissions; he was not taxed when he bought the stock, however, since the tax applies only to sales and not to purchases. 2 See Chapter XII, p. 276. ZL See Appendix XVd. 2 See Chapter VIII, p. 207.

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