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.

550 APPENDIX concerted action. The whole movement, which has undoubtedly ac- complished valuable results already, owes much to Mr. Simmons, who not only initiated it but who has subsequently made addresses in many parts of the United States and abroad in connection with it. (IVb) It must be realized that the American security underwriting and flotation business has grown up under sometimes unique economic and legal conditions, and that in method and organization it differs considerably from the practices of foreign financial centers. In London, for example, underwriting and issuing securities are looked upon as distinctly separate operations, and frequently a new flotation will be underwritten by one firm or group and issued by another. In America, it is almost always the same firm or syndicate which underwrites and issues. Also, the practice of issuing to secondary “subsyndicates” is largely peculiar to this country. In general, European underwriting and issuing technique evolved during the last century when the leading European countries were creditor nations. Our business, however, was inevitably influenced by the fact that through the same formative period the United States was a debtor nation, where capital was almost regularly more scarce than legitimate domestic securities. Thus, the emphasis abroad was upon obtaining new securities to issue, while with us it was upon obtaining capital. This is perhaps the basic reason why direct security selling by bond-salesmen has always been a unique American practice. It is interesting to conjecture just what differences to our under- writing and issuing practice our present status as a creditor nation is likely to produce. It may be that more and more the United States will have to adapt its practice to the condition of a regular surplus of capital. The description of American security underwriting and issuing methods in this chapter must therefore be considered as tradi- tional but not necessarily immutable, and notably different from orthodox European methods. (IVc) The origin of the New York Curb Market is obscure, but it first attained permanent size and significance during Civil War times. For many years it used to meet in the middle of Broad Street a little south of Exchange Place. Being an open-air market, it lacked administrative discipline, dependable quotations, or limitations as to the character either of its members or of the securities in’ which it dealt. Although basically a useful market, it gained a general repu- tation of “caveat emptor.” In 1921 the leading firms with representatives on the Curb organ- ized an association modeled in general after that of the New York

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