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.

Chapter

Document type:: Monograph

Structure type:: Chapter

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

Collection:: Economics Books

45 can be carried on steadily and considerably only in organized security markets. For this reason, the interurban, and par- ticularly the international, traffic in securities, so necessary to stability in the capital market and to the most economic direc- tion of new capital, is particularly dependent upon the estab- lishment and successful functioning of stock exchanges. ORGANIZED SECURITY MARKETS 3. Fairest Price-Making.—The stock exchanges also per- mit the fairest possible prices to be made for the securities listed upon them. Concerning this aspect of organized mar- kets, Judge Grosscup, of the United States Circuit Court, once said: The exchanges balance like the governor of an engine the otherwise erratic course of prices. They focus intelligence from all lands and the prospects for the whole year by bringing together minds trained to weigh such intelligence and to forecast the prospects. The truth of this remark becomes apparent when the con- trast between selling an automobile and a listed security is recalled. The car may possess an intrinsic value of $1,500, and there may be hundreds of people in the United States who would welcome the opportunity of purchasing it at that figure. But this does the owner no good. He cannot locate them and arrange a sale, because there is no organized market through which he can readily be put in touch with them. He must therefore accept whatever price the few buyers whom he is able to interest may be willing to bid for his car, and the highest bid he can obtain may not reflect its actual value. Very dif- ferent is the situation in a nationally organized market like the New York Stock Exchange, the leased wires of whose mem- bers reach to all important centers in the nation (Figure 2). Practically all the possible buying orders regularly compete to raise prices, and simultaneously all the possible selling orders compete to lower them. As a result of the balance struck between these mutually opposing forces, the fairest price to both buyers and sellers results.

Access restriction

Copyright

fullscreen: The work of the Stock Exchange

Monograph

Chapter

Table of contents

Download

Monograph

Chapter

This page

Image fragment

Citation links

Citation recommendation