110 THE WORK OF THE STOCK EXCHANGE

many years, during which the company has proved a conspicuous
 financial success. The quarterly reports published by the
Corporation give the proportion of both its stock issues which
stands respectively in brokers’ and in individuals’ names (Figure
 6). While a little of the former may really represent
investment, and some of the latter bé held for speculative purposes,
 nevertheless in a general way it is fair to consider stock
standing in a broker’s name as part of the speculatively held
floating supply, and that standing in the name of an individual
as investment stock.”
On the basis of this assumption, a comparative examination
of these quarterly reports of the U. S. Steel Corporation from
100g to 1920 shows that on December 31, 1909, 66.41% (or
about two-thirds) of the common stock was in the floating
supply, and only 33.59% (or about one-third) held by investors.
Six years later, on December 31, 1915, 49.80% (or about onehalf)
 of the same issue was speculatively held, and 50.20% (or
about one-half) held by investors. On December 31, 1929,
21.21% (or only about one-fifth) remained in the floating
supply, and 78.79% (or almost four-fifths) had been absorbed
by investors. This is a striking illustration of the tendency
of a stock to shift from speculative to investors’ hands as it
becomes seasoned over a long period of time.
The more complete diminution of the floating supply of an
investment security as contrasted with that occurring in a more
speculative common stock is furthermore shown by the similar
statistics relating to Steel preferred, which has long been considered
 by many to possess investment features comparable to
those of the average bond. On December 31, 1909, I7. 57%
of this preferred issue constituted its floating supply, but by
December 31, 1915, this had shrunk to 11.1 5%, and by December
 31, 1929, to only 7.01%.
The short-term tendency of the floating supply to expand
or contract in accordance with rises or declines in the price,
~ # Appendix IVm.