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

Usage license:: Get license information via the feedback formular.

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Document type:: Monograph

Structure type:: Chapter

Title:: Chapter II. Organized security markets and their economic functions

Collection:: Economics Books

41 practical endeavor to invest funds. Nevertheless, it is some- what difficult to classify even the leading beneficial functions of the organized stock exchanges, because of their consider- able number and constant inter-relations. Some of these func- tions are only more intensified forms of what exists more or less in any market, while still others are peculiar to organized markets. Here the attempt will be made to deal with basic functions only, and many minor services will be left for later chapters to elaborate. The analysis is confined to stock ex- changes, but in part, of course, applies also to exchanges for oroduce or commodities. ORGANIZED SECURITY MARKETS 1. Increased Safety of Dealings.—The higher organiza- ion of a stock exchange greatly increases the safety with which security dealings can be carried on, either by its own members or by the public, through its collective regulations, facilities, and discipline. Impossible for practical reasons in an unor- ganized market, the collective adoption and enforcement of rules are the first task of a stock exchange. Marketing prac- tices upon it are soon standardized, and irregular or fraudu- lent methods of dealing in securities are sternly stamped out. The membership of the market becomes selective, and persons of improper character or business associations are excluded from it. Forged or fraudulent securities are barred from the market. Insistence is placed upon honest quotations. In these and countless other less important ways, the market in or- ganizing as a stock exchange, becomes a collective force for commercial integrity. The national effect of this increased safety of dealings created by stock exchanges is to foster security investment, and to develop a broader, firmer, and more active securities market. As its volume of trading increases, the public can deal in the stock exchange through its member-brokerage firms not only more safely but also as a rule more cheaply than in a duller, less organized market. There is, in fact, the same trend toward lowered costs through increased volume of activ-

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