5Q0 
APPENDIX 
ments for either loans or customers’ accounts. No inflexible law can, 
in this regard, ever prove an effectual substitute for wise and ex- 
perienced administration.” 
(Vd) “Both the writer and the reformer must reckon more than 
they have done with the fact that speculation in the last half-century 
has developed as a natural economic institution in response to the new 
conditions of industry and commerce. It is the result of steam trans- 
portation and the telegraph on the one hand, and of vast industrial 
undertakings on the other. The attitude of those who would try to 
crush it out by legislation, without disturbing any other economic 
conditions, is entirely unreasonable.” (H. C. Emery—“Speculation 
on the Stock and Produce Exchanges of the United States,” p. 9.) 
CHAPTER VI 
A Typical Investment Transaction 
(VIa) In case, however, one buying member had simply cried, 
“Take it,” while another buyer had simultaneously made a definite 
bid for the stock by saying “(I'll give) 150 for a hundred (shares),” 
it is a rule of the Stock Exchange that the latter, because he is an 
actual bidder, shall have the preference and get the selling member's 
stock. Similarly, after—say—50 has been bid for a stock, if simul- 
taneously one seller cries, “Sold,” while another says “(I'll) sell a 
hundred (shares) for 50,” the latter member offering the stock is 
accorded the sale. 
(VIb) In 1929, the increase of the Stock Exchange membership 
brought upon the floor a considerable number of new members some 
of whom were inexperienced in the technique of floor dealings. To 
inform them in this regard, and also to settle occasional disputed 
points between the older members, a Special Committee of the Ex- 
change after considerable effort codified the practice of the Stock 
Exchange floor on numerous moot points of dealing, and this code 
was subsequently published in pamphlet form by the Committee of 
Arrangements. So essential is this material to a complete grasp of 
Stock Exchange practice, that it is reproduced in full in this Appendix. 
Dealings in Securities 
Bins AND OFFERS 
Precedence on the Floor. The first bid or offer, at a price for one or 
more units of trading, entitles the maker to the floor; a sale removes bids 
and offers from the floor in that classification only (regular way, cash,