The Stock Exchange Welcomes You as a Visitor
L. Engles, F. Icks, P. Jocbs
and J. Schuerewegen
L. Engles and his co-authors of
the essay “The Stock Exchange Welcomes You As A Visitor” give us a beautiful
insight about the oldest Stock Exchange of the world that was started nearly
250 years ago.
The Stock Exchange, a Financial
Market, started in 17th Century, when the Government and a number of
trading enterprises, began to raise money by the public subscription. Stocks
and shares were issued and as they were bought and sold on an increasing scale.
At this juncture a regular market began to form, with ‘brokers’ whose business
was to bring buyers and sellers together.
Earlier, stock brokers used to
meet in the Old Royal Exchange. Later their business was carried on in the
coffee houses around the “Change Alley” there the uniformed attendants await
the customers of the Stock Exchange. They are now called waiters.
In 1713, a meeting of stock
brokers decided to have a house of their own to facilitate the trade. Soon,
they took over a building at the corner of Treadneedle Street and Sweetings
Alley and inscribed over its door a new title “The Stock Exchange”
The great financial market we
know today has grown step by step with the expansion of British Industry and
Commerce. In this market there are two types of members, brokers and jobbers.
Brokers act as agents. It is their business to carry out your
instructions to buy or sell shares to your best possible advantage, and for
this they receive a fixed rate of commission. The most important of all these
--- they give advice to you at no charge. These services are based on a
continuous study of industrial and economic reports from all over the world.
Jobbers deal as principals or wholesalers in stocks and shares.
They deal only with brokers and do not come into contact with the public.
Jobbers have to be prepared to buy or sell what you want to sell or buy –
through brokers. This may involve them in a loss or profit according to their
subsequent transaction. A jobber may hang a list of prices of stocks and shares
against a pillar or a wall near his ‘pitch’ in which he specializes. In that
list some prices are marked in blue, indicating a rise, and others in red,
showing fall. All deals are recorded in the note books. No formal bargain is
made, even for transaction involving many thousands of pounds. Here man’s word is his bond as the motto of
the House declares: “Dictum Meum Pactum.”
On every Thursday, at 11.45 am
the government broker arrives from the bank of England bringing news of any
change in the bank rate. A similar board, of course it is not visible from the
Gallery, shows the bank rates prevailing in New York, Paris, Brussels and
Amsterdam. Besides these exhibits the announcements of companies dividends is
made public by messages flashed on to lighted screens in various parts of the
House. Taking the notes of all this information a jobber may raise his voice
occasionally to offer or bid for the shares in which he deals.
At exactly 2.15 pm you may hear a
curious rattling sound saying that no more transactions can be recorded in the
day’s list – the list from which are complied the detailed share prices which
can be read in the next day’s newspaper. Again at 3.15 pm another rattle sound
is made to tell the members that they may smoke if they wish, during the last
quarter of an hour of business. Half an hour after the Gallery has been closed,
the closing of the House is announced by a third rattle signal at 3.30 pm.
There ends your visiting hours of the Stock Exchange.
But this not the end of the day’s
activities but business may be continued further on telephone in the offices of
brokers and jobbers till late hour of the night.
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