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 XVI. The administration of the stock exchange

Collection:: Economics Books

456 THE WORK OF THE STOCK EXCHANGE Other regulations limit the Exchange member, whether a specialist or not, in acting as both broker and dealer in the same transaction. The Commission Law.—The Constitution provides a schedule of minimum commissions for Exchange brokers, who may charge more but never less than the stated rates. Ex- change members are also strictly forbidden to “split” or rebate part of their commissions with non-members; while Exchange members may share commissions with other Exchange mem- bers, the Constitution also provides definite minimum scales for such cases.?? These minimum commission rates vary somewhat accord- ing to the class and character of security handled, subject to minimum charges for small amounts. The commission rates are scaled up and down according to the higher or lower market prices of the securities bought and sold. In general, New York Stock Exchange commissions, amounting as they usually do to only moderate fractions of 1% of market values, are well below the similar commission rates of the other leading stock exchanges of the world, and ridiculously small compared with the 25% and 50% commis- sions sometimes obtained in the commercial field. That this has always been the case is attested by the minimum rate of 14 of 1% mentioned in the original New York brokers’ agree- ment of 1792?*—a rate, incidentally, considerably in excess of the brokerage commission rates in the Exchange today. Infractions of the minimum commission rate have always been severely punished by the Exchange, on the basis that cut- ting commissions below the minimum rate would be unfair to houses adhering to the rule, and would in the long run deprive the public of a uniform cost for the services of the market. A century and a quarter of experience has completely con- firmed the opinion of the original brokers under the historic 21 See Appendix VIII. 2 See Appendix VIIIc. 2 See Chapter III, p. 63.

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