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 461 very largely responsible for the steady elimination of bucket- shops throughout the nation. Semi-Annual and Other Financial Statements.—In 1922 the Stock Exchange inaugurated its policy of regularly inquir- ing into the financial condition of its member brokerage firms. In this connection the Constitution states :2° Members who carry margin accounts for customers shall furnish to the Committee on Business Conduct, upon its request, which request shall be made not less than twice in each year, a statement of his financial condition or that of his firm in such form as shall be pre- scribed by said Committee. Subsequently, there was added to this demand (referred to in Wall Street as the Stock Exchange “questionnaire” %'), the further requirement that the same firms should cause to be made a complete audit of their accounts and assets, including securities held for safekeeping. Exchange firms or members not carrying margin accounts for customers were also called upon annually and on demand, to report to the same Com- mittee as to their holdings of securities for safekeeping.?? The adoption of this policy has undoubtedly proved one of the greatest forward steps taken by the Exchange in recent times. Insolvencies of Exchange members (see accompany- ing Figure 59) have been reduced to very low percentage proportions, during years when the similar percentage insol- vencies among American national banks, among all American banking institutions, and among American commercial firms, have. been unusually high®®* Frequently, the operation of the plan has prevented insolvencies on the Exchange, by forcing its firms in sufficient season either to increase their capital or reduce their commitments. In 1926 the further policy was undertaken of calling upon Exchange members to furnish to the Exchange their total net % Constitution (Rules, Chapter XV, Sec. 1). 81 The full text of the questionnaire form will be found in Appendix XVIg 2 See Appendix XVIh. 83 See Appendix XVIi.

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