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APPENDIX 
the apparent Earned Surplus, as contrasted with the effect of the cash 
alternative. 
The Exchange will not decline to list, for the present at least, ordi- 
nary periodical Stock Dividends insufficiently charged against Earnings 
or Earned Surplus, providing proper disclosure is made of the nature 
of such dividends. Stock issued as interest or as dividends upon other 
securities ‘with a cash alternative will not be regarded as available for 
listing if it is to be charged against Earnings or Earned Surplus at less 
than the amount of cash surrendered, excepting as to further issuance 
of stock under such conditions in cases where such application or appli- 
cations for listing the senior securities bearing such alternative Stock 
Dividends, may have been approved before the objections to the practice 
were clearly apparent, or unless accounting procedure should develop 
in a direction which cannot now be foreseen, in such manner as to 
warrant considering full disclosure as adequate protection to security 
holders of all classes. 
The Exchange will not knowingly list any of the securities of a 
corporation which takes up as income upon its books Stock Dividends 
received at a larger figure than the proportionate amount charged against 
Earnings or Earned Surplus by the issuing Company. Where the issu- 
ing company declines to give this information, objection will be made 
if the receiving company regards such stock dividends as income to any 
extent whatever. 
Attention is called to the fact that in the rapidly changing conditions of 
modern business, the Exchange is frequently called upon to consider from 
a listing standpoint an accomplished fact in corporate finance, upon which 
immediate action is imperative, without adequate time for the consideration 
of the new problems involved. Such action will not be regarded as creating 
a precedent upon which reliance may be placed, if further consideration indi- 
cates that the action taken is not in the best interest of the public and of 
the Exchange. 
(IVE) In London, Amsterdam, Vienna, Berlin, and most other 
leading financial centers, there is no preliminary or curb market ex- 
change. The Coulisse, or Lurb Market of Paris, has largely been 
created by the statutes and arrangements imposed by the French 
Government upon the official Paris Bourse stock market in return 
for granting it a legal monopoly in its business. The New York 
Stock Exchange is alone among the great securities markets of the 
world in having turned away sufficient business by reason of the 
strictness of its voluntarily formulated listing requirements, to have 
allowed the rise of a separate major stock exchange (the New York 
Curb Market) beside it. It were well for those who sometimes 
criticize the New York Stock Exchange and its member firms for 
selfishness of policy, to recall this unique instance of sacrificing mem- 
ber-earnings for the ideal of safeguarding the public in its security 
investments.