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

ADMINISTRATION OF THE STOCK EXCHANGE 437 buttonwood tree, that the American brokerage business in securities could not otherwise be conducted conservatively and safely. Without minimum commission rules, brokerage orders would constantly tend to flow into rash Exchange firms which, to secure business by cut-rate methods, would assume danger- ous risks by reason of improperly small margins of profit. Not only would many disciplinary provisions of the Exchange be harder to enforce under such circumstances, but the insolvency of such firms would harm not only themselves and their cus- tomers, but also more conservative firms which had done busi- ness with them. The provision against splitting commissions with non- members is a unique feature of the New York Stock Exchange among the leading security markets of the world, yet one for which in theory if not in practice this Exchange has been heartily envied by other markets. Not only does it check “money trust” tendencies in the market arising from the activi- ties of corporate banks engaging in the commission business, but it also prevents the formation here of a miscellaneous class of “business getters” such as may be seen abroad, which is mostly beyond the control of the exchanges and sometimes irresponsible and harmful to them. The absence of these unnecessary middlemen in the New York Stock Exchange commission business largely accounts for the lower commission charges to the public here, as compared with those of the for- eign stock exchanges to their respective clienteles. Another rule of the Exchange? restricts the advertising of its members to “a strictly legitimate business character.” Z. glance at the financial section of any leading metropolitan news- paper will reveal how thoroughly this regulation is enforced. Members of the London Stock Exchange are not allowed to advertise at all, but in the United States such a flat prohibition would not prove salutary, both because of the more extensive employment of advertising with us, and because of other even “4 Constitution (Rules, Chapter VIII, Sec. 1)

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