The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1925-07-14
ODD LOT STOCK
BUYERS ON
INCREASE
Market Is Cleared Up to Ac.
commodate Small Scale
Investors
BY RICHARD HATTON.


The growth in number Of small
investors has been 50 great in re-
cent years, says pamphlet issued
by Carlisle, Mellick & Co., that the
odd-lot purchasers of securities have
increased steadily.
while the standard unit OF stock
purchases and sales on the New
York Stock Exchange since its foun
dation has been 100 shares" says
the statement by the brokers, the
daily business in odd lots has as
sumed such proportions as to make
it necessary for the stock exchange
to gear up his mechanism to the
handling of odd lot orders. This
1t has done in way to benefit and
protect the small investor and to
Mace him on substantially the same
plane with the large investor. Every
one of the protective rules Of the
New York stock Exchange applies
as well to the purchase of ten
shares of stock as to the purchase
OF 10000 shares.
Safety Measure.
"a thorough understanding on
the part of the small investor and
the broker or banker through whom
he deals, in regard to the execution
Of odd lot orders on the New York
: Stock Exchange will be the strong
est possible influence in inducing
small investors to put their money
into enterprises whose shares are
10. he a~ahorOn and
which therefore enjoy far greater
degree of safety and marketability
than do the securities of unknown
standing.
1T is essential that the small in
weston be assured that his transac-
lions on the New York Stock Elk
change receive exactly the same
protection as do thoge of the pur-
chaser of large blocks of stocks, for
any investments made through stock
exchange firms have the advantage
of meeting certain requirements and
regulations. made by the exchange;
the advantages of a. free and open
market, and the advantages of
liquidity. Too often, the tragedy
or the small investor has been his
willingness to deliver his savings
to unknown solicitors about whose
activities little is known and whose
ethics and honor are not supported
by the traditions OF the New York
Stock Exchange.
In the coming years, the nations
industry VIII become constantly
more dependent upon the small in
weston for large supplies OF capital
without which, and without free
and open security markets, Amer
lean industry viii be unable to ex-
pand. It is therefore important
for the welfare Of the nations in
dustry that the smaller investor
should understand the protection he
receives in making odd lot invest
ments through stock exchange
firms.
Booklet Gives Data.
"In order that the odd lot bust
ness may be understood In all Of
its details, the following pages, in
the form of questions and answers,
have been prepared. The questions
relate to problems which years of
experience have shown most fire.
quntly occur both to small investors
and to bankers and to brokers. The
answers are those which all MEM
bers OF the stock exchange and all
others versed in its activities would
give.
The booklet then answers a num-
Der of pertinent questions regard
ing trading in odd lots which can
not fail to interest those who in
vest in such securities by pointing
out three things that should be
known before stock investments are
made.
That the company whose security
he wishes to buy is reporting its
affairs according to standard prac-
tice and in way which will per-
NIT Of no deception.
What to Buy.
He should invest In securities
which can be readily sold in the
event of his wishing to do so or
of the necessity of doing SO. He
Furthermore should be assured that
he is dealing in a free and open
market in which he can obtain
quotations of the bid and asked
prices before entering his order to
buy or sell. Quotations of the BID
and asked price of all securities
listed on the New York Stock Elk
change may always be obtained
either through ones own broker or
In the daily papers. In this way.
1t is always made easy for the
buyer and seller of stocks to get
together and this in turn insures
the small investor that his FUNDS
will always be liquid.
The small investor. even more
IMAM the large investor, because he
usually has not the opportunities
Ct the large investor to familiarize
himself with the mechanism of
markets and the STANDING Of those
with whom he makes investments.
should endeavor to aonfine his in.
Hestments to securities, tho dealings
IN which are regulated by the time.
honored traditions of the New York
Stock Exchange, for only in such a
market is he afforded ample pro.
lection.