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 XVIII. The stock exchange as an international market

Collection:: Economics Books

STOCK EXCHANGE AN INTERNATIONAL MARKET soy ber here actually received less than the required minimum commission. By a resolution of the Governing Committee in 1911, such joint accounts were forbidden. The coming of war conditions effectually changed the whole basis of the business. Severe laws were enacted abroad forbidding the import of securities there because of the con- sequent export of capital which it caused. Term trading was likewise suspended for several years on the British and con- tinental stock exchanges.” The cables were heavily burdened and under rigid censorship. Also, during the war period the great bulk of American securities held abroad was sold back to Americans through the New York market. Thus, not until two years after the Armistice were conditions suitable to justify an attempt to revive the pre-war methods of normal and efficient arbitrage between New York and foreign centers. In 1920 the Governing Committee rescinded the resolution of 1911, but placed certain restrictions upon joint account ar- bitrage designed to rid it of its objectionable features.®* By the terms of these restrictions, the old system of the “arbitrage rail” was not reestablished, and thereafter arbitrage transac- tions, if conducted by New York Stock Exchange members, have been centered in their offices rather than in the Board room. Former arbitrage in American securities has only par- tially revived because of the comparative lack of these issues now abroad, and consequently the lack of extensive markets for them there. On the other hand, as foreign securities are listed on the New York Stock Exchange, arbitrage in them— a relatively new species of Wall Street business—has developed. Benefit of a Broader Market.—The fact that American securities were listed and traded in abroad as well as in New York made a broader market for them, and tended to make them easier to buy and sell, and at fairer prices.” We have seen that similar results were obtained for the Stock Exchange 7 See Chapter XI, p. 308. 8 Constitution, Chapter X 3 See Chapter II, p. 45

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