Die Social-Demokratie

The work of the Stock Exchange

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Monograph

Identifikator:: 826719449

URN:: urn:nbn:de:zbw-retromon-30888

Document type:: Monograph

Author:: Schuster, Richard

Title:: Die Social-Demokratie

Place of publication:: Stuttgart

Publisher:: Steinkopf

Year of publication:: 1875

Scope:: 1 Online-Ressource (XII, 236 S.)

Collection:: Economics Books

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248 THE WORK OF THE STOCK EXCHANGE station in succession rather than in precise chronological order from all stations at once.’ When this key-board operator and the four other operators who “fed” him quotations were replaced by a centralized me- chanical device, it was thought that this defect of “bunched” sales had been at last eliminated. But the vastly increased volume of dealings in recent years has overburdened even the mechanical electrical interrupter which has replaced the old key-board operator, with the result that “bunched” sales on the tape still occur, although less frequently than formerly. The new stock ticker instrument, by enabling speedier dispatch of quotations, has, however, further obviated this problem. When sales are “bunched” on the tape, it is naturally very difficult for the odd-lot investor to determine which of these sales is the basis of his odd-lot transactions. Sometimes, too, he jumps to the conclusion that many sales in the given security have suddenly occurred, and that the odd-lot dealer has taken advantage of this fact to select the highest of them as a basis for selling and the lowest for the basis of buying, to and from the brokers who represent the public. To anyone familiar with the mechanism of reporting sales on the tape, the fallacy of such a conclusion should be apparent. Although the stock ticker system of the New York Stock Exchange is by all means the most efficient price reporting mechanism in the world, and although the Exchange has spared neither pains nor expense to improve it as rapidly as science and invention have permitted, it is still true that the system fails of perfection and that occa- sionally allowances must be made for its limitations. In addition, it is unfair to blame the ticker for all the delays between the giving of an odd-lot order and the appearance on the tape of the next 100-share sale upon which its execution is based. In active markets, especially at the opening, consider- able delays have sometimes occurred in the transmission of an TT 9 See Appendix VId.

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