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

Usage license:: Get license information via the feedback formular.

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Document type:: Monograph

Structure type:: Chapter

Title:: Chapter XVI. The administration of the stock exchange

Collection:: Economics Books

466 THE WORK OF THE STOCK EXCHANGE authorities, and their ability to provide in some cases quite novel but effective remedies for the often very unusual prob- lems of that trying period. Enforcement of Discipline.—A less fortuitous but perhaps even graver danger which would result from incorporating the Stock Exchange, would be that its present morale and its strict discipline over the conduct of its members would be profoundly shaken and impaired. We have seen that the regulations of the Stock Exchange relating to the business conduct of its mem- bers go even beyond the common law in the earnest attempt to maintain “just and equitable principles of trade,” and that these regulations are immediately and thoroughly enforced. From the inherent nature of the transactions which take place in an organized securities market, such a high and ethical spirit of legislation is necessary. The general recognition of this necessity by Exchange members, in fact, is responsible for the severe and instant punishment to which they have voted to make themselves liable. Under a legislative charter the terms of membership and the relations of the members to the governing body of the Exchange would be subject to legislative control, whereas they are now a matter of contract. The present disciplinary power of the governing body is based on this contractual relationship. Under the contract fixing the terms of membership every member agrees to observe the rules of the Exchange and submits him8elf to the jurisdiction of the Board of Governors to punish any violation of the rules by fine, suspension, or expulsion, as the case may be. The most effective of these rules are couched in the broadest language to bring within their sweep not only acts that are wrongful from a legal point of view, but also acts that are inconsistent with fair dealing and in any way detrimental to the Exchange as a great market for securities.®® As Mr. Horace White, chairman of the Hughes Commis- sion, expressed it, “Forcing upon the Exchange an act of incor- poration would impair this disciplinary power and involve the Exchange in extensive litigation at heavy costs without any 36 See “Regulation of the Stock Exchange,” p. 557.

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