APPENDIX 
617 
fortunate to have received 63 for his stock. But when he sees the 
next sale at 64 he becomes suspicious. He concludes that the specialist 
B must have himself bought his 100 shares from A at 63 and later 
sold them at 64. And thus, although the specialist really did nothing 
of the kind, Jones becomes very indignant with him and considers that 
he has been cheated. 
(VIIIg) Prior to 1928, when the great activity of the stock market 
and the consequent tardiness of the stock ticker sometimes made it 
necessary to omit the amount of reported stock sales, this amount had 
always been printed on the tape along with the price quotation, and 
has afforded security buyers very useful information. From such 
amounts of sales reported on the tape, the leading metropolitan news- 
papers have been accustomed to compile their familiar statistics of 
“Sales on the Stock Exchange” each day. 
Yet it must always be borne in mind that the essential purpose 
of the stock ticker is to report current prices, and that statistics as 
to number of shares sold are merely incidental thereto. Also, the 
mechanical limitations of the stock ticker machine have prevented the 
printing of absolutely all transactions on the Exchange. Therefore, 
the principle has always been followed of printing on the tape only 
those transactions which resulted from open market bidding and 
offering, and in the establishment of new current open-market prices; 
transactions whose prices were established merely on the basis of 
current open-market prices have thus been omitted as an unnecessary 
duplication of prices. But in this process, the volume of dealings 
attending such omitted quotations is, of course, also omitted from 
the tape. 
The two chief classes of such omitted transactions are ‘stopped 
stock” whose price is based directly upon some other price established 
in the open market, and “odd-lots” whose price is usually based 14 
or 14 away from the next 100 share open-market price (see Chapter 
[X). It is estimated that, on the average, the volume of odd-lot trans- 
actions constitutes about 309, of share sales reported on the tape, 
and the volume of stopped stock transactions an additional 5 to 109. 
Thus, for a day when share sales reported on the tape aggregated 
3,000,000 shares, the actual total of shares sold on the Exchange 
would probably be between 4,150,000 and 4,300,000. 
(VIIIh) Despite the expanded facilities made available for spe- 
cialists on the Exchange floor, the huge volume of dealings during 
the 1929 panic caused serious congestion in their work—as indeed in 
practically all other branches of the Stock Exchange system. Spe-