100 THE WORK OF THE STOCK EXCHANGE
receive a list of them, but it is keenly interested in the pro-
portionate amount of the total issue which the largest of them
holds. A stock is considered to be poorly distributed if a few
shareholders own the bulk of it in large blocks, and well dis-
tributed if many shareholders own it in small lots. By means
of the distribution statement, the Exchange gets an idea of
how readily a free and open market can be created for a new
security on the floor, and it thus minimizes the danger of
corners or of large blocks being dumped suddenly on the
market.
The Routine with Applications to List—When the ap-
plicant has filed with the Stock Exchange the application meet-
ing the listing requirements, and the other papers called for,
including the questionnaire and distribution statements, the
papers are gone over carefully; and after any necessary correc-
tions have been made by the applicant, a date is set for a hear-
ing upon them. At the time of its receipt the application is
posted on the floor of the Exchange, so that members may
familiarize themselves with the facts it sets forth, and com-
municate to the Committee any knowledge they may have con-
cerning the enterprise.
The Committee on Stock List meets Mondays at 3:15 P.M.
and carefully examines and considers any application which
has been submitted to it. If it finds that the various require-
ments have been satisfactorily met by the applicant, it recom-
mends to the Governing Committee that the application be
granted. Usually, although by no means always, an applica-
tion recommended by the Committee on Stock List will be
favorably acted upon by the governors.
When the recommendation of the Committee on Stock List
in the matter of an application to list securities is adopted by
the Governing Committee, authority is granted for such listing
of such securities. A notice is then prepared and sent over the
tickers throughout the Wall Street district the next morning
and trading in the securities on the floor of the Exchange
