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 XVIII. The stock exchange as an international market

Collection:: Economics Books

504 THE WORK OF THE STOCK EXCHANGE expanded in scope, perfection of technique, and economic sig- nificance both here and abroad. By reason of this development in arbitrage, domestic and foreign prices for American “international” securities were kept much closer together than ever before, and these issues enjoyed a much broader market; for when New York would not buy, London and other foreign centers would, and vice versa. On the other hand, American economic conditions came to play a much more immediate and important part in the foreign markets, and foreign conditions in our markets. If our Spanish War shook the British markets, so their Boer War shook ours. But the effect of this closer community of interest between security markets was on the whole highly beneficial, since it facilitated a vast flow of European capital into our gigantic railway and other business projects. International arbitrage, of course, involves a thorough knowledge of foreign stock market practices. Foreign sys- tems of price quotation are sometimes on a very different basis than our own; in London, for example, bonds are usually quoted “flat,” but in New York usually “with inter- est.” * Also, contrasting with our cash settlement, foreign stock exchanges sometimes employ a fortnightly term settle- ment. When it was necessary to ship certificates from abroad to deliver in New York, usually the sales on the New York Stock Exchange were made for delivery by the seller at his option any time within 30 days (“seller 30” in the jargon of Wall Street), instead of being made “regular way” for delivery the next full business day. Arbitrage transactions, like other speculative dealings, involve the assumption of risks for pos- sible private profits. So keen is the competition between ar- bitrageurs here and abroad, that prices are kept close together, and normally arbitrage profits are small indeed in comparison with the trained skill, extensive facilities, and capital risks which they require 2 See Chapter X, p. 268.

Access restriction

Copyright

fullscreen: The work of the Stock Exchange

Monograph

Chapter

Table of contents

Download

Monograph

Chapter

This page

Image fragment

Citation links

Citation recommendation