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.

APPENDIX wv 1910. . .. 1914... ... 1917...... 1920...... 1927...... 1930...... AMERICAN TELEPHONE AND TELEGRAPH COMPANY Number >f Share. 10lders verage Number ny $5 <° "08, .0,55! 120,460 399,121 169 801 UNITED STATES STEEL Number f Share- holders 17 123 1 Average Number of Shares Hel 230.70 107.64 .62 .04,376 86,034 167,951 sh 59.7 48 42 DENNSYLVANIA RAILROAD Number »f Share- holders 65,283 91,571 00,138 33,068 141,202 106.119 -verage Number of Shares Held 126.41 109.04 99.82 75.04 70.72 58.60 (IVo) The term “bucketshop” (French, maison de contre partic) may best be defined as a pretended brokerage firm which makes it a practice to take a position in the market opposite to that taken by its customers. Originally, American bucketshops did this by not actually buying or selling for its customers at all, and depending upon their misjudging the market. Such firms were largely driven out of busi- ness by a law enacted in New York State in 1913 which gived the customer the right to obtain from his broker the name of the firm to whom his stock has been sold, or from whom it has been bought. This, unfortunately, did not abolish bucketshops, but only changed their methods of operation. The modern bucketshop executes the customer’s initial order quite legitimately and is thus in a position to give him a correct confirmation as required by law. But secretly, and usually at once, the bucketshop proceeds to sell out his customer's “long” stock. If the price of the stock declines, the bucketshop can ‘hen regretfully pretend to close out his customer by selling, and keep that portion of the customer's margin which would have been lost had this delayed and pretended sale been actual. If, however, the stock rises in price, ultimately the bucketshop will be unable to pay its customers’ profits out of its own pocket; accordingly, the bucket- shop will suddenly declare its disastrous bankruptcy. Since most inexperienced brokerage customers are buyers and “bulls,” it consequently follows that in general bucketshops will make money when prices decline, and lose it when they rise. The truth of ‘his generalization was seen in 1920-22. During the long “bear” market from November, 1919, to August, 1921, bucketshops reaped i harvest and often grew to large size. But after the turn in prices after the latter date, they began to lose money and in the late fall >f 1921 they commenced to fail. Bucketshop insolvencies lasted until well into 1922, and caused immense public losses. The permanent results of this bucketshop debacle might be summed up as (1) the liquidation of the Consolidated Stock Exchange of New York: (2) the higher organization of the New York Curb Market

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