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 617 fortunate to have received 63 for his stock. But when he sees the next sale at 64 he becomes suspicious. He concludes that the specialist B must have himself bought his 100 shares from A at 63 and later sold them at 64. And thus, although the specialist really did nothing of the kind, Jones becomes very indignant with him and considers that he has been cheated. (VIIIg) Prior to 1928, when the great activity of the stock market and the consequent tardiness of the stock ticker sometimes made it necessary to omit the amount of reported stock sales, this amount had always been printed on the tape along with the price quotation, and has afforded security buyers very useful information. From such amounts of sales reported on the tape, the leading metropolitan news- papers have been accustomed to compile their familiar statistics of “Sales on the Stock Exchange” each day. Yet it must always be borne in mind that the essential purpose of the stock ticker is to report current prices, and that statistics as to number of shares sold are merely incidental thereto. Also, the mechanical limitations of the stock ticker machine have prevented the printing of absolutely all transactions on the Exchange. Therefore, the principle has always been followed of printing on the tape only those transactions which resulted from open market bidding and offering, and in the establishment of new current open-market prices; transactions whose prices were established merely on the basis of current open-market prices have thus been omitted as an unnecessary duplication of prices. But in this process, the volume of dealings attending such omitted quotations is, of course, also omitted from the tape. The two chief classes of such omitted transactions are ‘stopped stock” whose price is based directly upon some other price established in the open market, and “odd-lots” whose price is usually based 14 or 14 away from the next 100 share open-market price (see Chapter [X). It is estimated that, on the average, the volume of odd-lot trans- actions constitutes about 309, of share sales reported on the tape, and the volume of stopped stock transactions an additional 5 to 109. Thus, for a day when share sales reported on the tape aggregated 3,000,000 shares, the actual total of shares sold on the Exchange would probably be between 4,150,000 and 4,300,000. (VIIIh) Despite the expanded facilities made available for spe- cialists on the Exchange floor, the huge volume of dealings during the 1929 panic caused serious congestion in their work—as indeed in practically all other branches of the Stock Exchange system. Spe-

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