234 “THE WORK OF THE STOCK EXCHANGE
War period a continuous market was established on the Ex-
change it had already adopted the 100-share unit, and a single
dealer on the floor named Munroe was able to attend to all the
odd-lot orders received. After the panic of 1873 other Ex-
change members took up this branch of the work, which gradu-
ally increased in volume as time went on. After the appearance
of the specialist® as a dealer and broker in the growing stock
market, it came to be the custom for the few odd-lot dealers to
have the specialist trade for them on commission. But with
the further passage of time and the continued increase in the
turnover of sales on the Exchange, the specialist’s increasing
work in 100-share lots prevented his handling these odd-lot
orders with sufficient attention and care. The growing diffi-
culty of finding a market for odd-lots of stock which resulted
was thus the immediate cause for the organization of the pres-
ent odd-lot houses, which depend entirely on their own floor
representatives in making their sales or purchases.
Nature of the Odd-Lot Business.—In consequence, the
sdd-lot dealers today stand always ready to deal in any number
of shares from I to 99 and thus make it possible for the small
investor to purchase or sell odd-lots of listed stocks at all times.
Their only customers are the commission brokers who, as
middlemen, bring to them the orders for small lots which origi-
nate from small investors and traders all over the country.
The odd-lot houses, as we shall presently see, not only maintain
extensive offices and large clerical forces, but also must possess
many partners or representatives who are Stock Exchange
members. Certain odd-lot houses require the services of forty
or more members of the Exchange, and have ohe or more
partners or representatives stationed at each of the stock posts
on the floor.
The odd-lot dealer is able to perform his useful function by
purchasing shares wholesale in I100-share lots in the open
market, and then splitting up the 100-share certificates into
3 See Chapter VIII, p. 210.
