240 THE WORK OF THE STOCK EXCHANGE
lots of 3, 14, 8, 20, 25, and 30 shares of U. S. Steel preferred,
he sends to the transfer office a 100-share certificate of that
stock ; this is thereupon canceled, and the odd-lot dealer receives
in exchange six odd-lot certificates, each for the stated number
of shares.
This process of exchanging odd-lot certificates for 100-share
certificates is not always necessary, and consequently by
no means invariably employed. Odd-lot certificates aggregating
100 shares are considered a “good delivery” for a 100-share
sale of stock, and frequently odd-lot houses will deliver to a
purchasing commission broker odd-lot certificates to the total
amount of 100 shares, instead of a 100-share certificate.
Nevertheless, the latter has the right to demand that the stock
be delivered to him by transfer—in which case he would, of
course, get a 100-share certificate.
Deliveries of odd-lot certificates to out-of-town customers
which require transfer into a new name are frequently delayed
by the operations of the transfer offices. The odd-lot dealer
puts the stock into transfer, but cannot get it out again quickly
to deliver to the buying broker. Meanwhile, the out-of-town
customer becomes impatient and is apt to blame the odd-lot
dealer for a delay inevitable with registered securities requiring
transfer.
Deliveries, Commissions, and Profits.—It should be noted
that the odd-lot house never comes directly into contact with
the public, but deals with it only through the commission
brokers, who in odd-lot transactions act as middlemen. In
consequence, the odd-lot dealer delivers the certificates of the
>dd-lots of stock which he has sold to the commission broker,
who in turn delivers them to his customers. Similarly, the
odd-lot certificates which the customers sell, come to the odd-lot
dealer only through the commission broker. The commission
broker charges a commission for his services to the odd-lot
customer exactly as in the case of the purchase or sale of round
lots of stock. The exact amount of this commission varies
