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 XV. The commission house

Collection:: Economics Books

427 Dividends and Premiums.—In a previous chapter it was stated that dividends upon the customer’s long stock were paid to him, while dividends upon his short stock he was himself forced to pay.” The accompanying statement gives illustra- tions of both cases. When the dividend on Reading is paid, Blank is already long 100 shares of this stock, and accordingly he is credited $100 for the quarterly $1 per share. But when the 50 cents per share quarterly dividend on Columbia Gas & Electric is declared, Blank is short of 100 shares, and conse- quently he is debited with $50. Still another item remains to be explained—the charge for a premium for three days of 14 on the 100 shares of Crucible Steel of which the customer is short. We have seen? that when the floating supply of a given stock becomes scanty and it is difficult to borrow it, the borrower must sometimes pay a premium to get the desired stock. Evidently this was Blank’s experience with Crucible. On August 26 he sold 100 shares short at 110 and did not cover the sale until the 29th, when he purchased the same number of shares. In the interim, of course, Jenkins & Co. had to borrow the 100 Crucible for him and, owing to its temporary scarcity, had to pay a daily pre- mium of 4%, or $25, for it, for three days. Accordingly, Blank is debited for $75. THE COMMISSION HOUSE Computation of Interest.—Lastly, there remains to be considered the important factor of interest charges. These are calculated upon the detachable slip on the right of the state- ment. The column headed “Balance for Interest” contains the cash amounts upon which the customer is due to receive or pay interest. To save time, all interest charges or credits are first calculated at 6%, and the total credits and debits are then adjusted to the correct and actual rate, which of course may be either more or less than the flat 6% rate first employed. At the end of the month, a total interest item is obtained. 7 See Chapter VII, p. 188,

Access restriction

Copyright

fullscreen: The work of the Stock Exchange

Monograph

Chapter

Table of contents

Download

Monograph

Chapter

This page

Image fragment

Citation links

Citation recommendation