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 XVI. The administration of the stock exchange

Collection:: Economics Books

454 THE WORK OF THE STOCK EXCHANGE such disputes as arise from transactions made on the floor of the Exchange. In previous chapters the conditions under which contracts are entered into on the Stock Exchange have been hriefly described. Often, indeed, a single word or even a mere nod of the head constitutes an agreement to buy or sell securi- ties worth many thousands of dollars. Occasionally, however, in the speed and rush of the trading, misunderstandings will arise. Some of these are settled on the spot by the parties con- cerned.’ The rule of the Exchange is that, once entered into, a bargain must stand, unless both parties to it agree to alter its terms. Accordingly, any serious disputes are taken before the Arbitration Committee and judged entirely on their merits, justice being done quickly and effectively. On appeal from this committee, the case may be taken before the Governing Com- mittee as the final authority in the Exchange. | “Wash Sales.”—So much is said concerning “wash sales” that a word concerning them is necessary here. A “wash sale” securs when two parties engage in fictitious transactions in order to establish artificial prices, with no real intention of exchanging money or goods. This indefensible practice is non- existent on the floor of the New York Stock Exchange. We have seen'® that the original Constitution of the Exchange provided expulsion for any member of the Board “making a fictitious sale or contract” The present Constitution states: A member who shall be adjudged by a majority of all the existing members of the Governing Committee guilty of making a fictitious transaction or of giving an order for the purchase or sale of securities the execution of which would involve no change of ownership, or of executing such an order with knowledge of its character, shall be suspended or expelled as said Committee shall determine. Both by the old custom of the Stock Exchange and by the laws of New York State (since 1913), a stockbroker is com- pelled to render his customers on their request a confirmation® 17 See Chapter VI, p. 165. 18 See Chapter 111, p. 64. 19 Constitution, Article XVII, Sec. 3 ® See Chapter XV, p. 419,

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