CURB MARKET or STREET MARKET, a name given to any stock market which either now transacts or originally transacted its business in the open, presumably in the streets or upon the curbs. At the outset, the curb markets of the various cities were entirely unorganized and operated only through the custom of a number of brokers meeting at certain places. Now they are well organized exchanges, most of them well housed.
The London Street Market operated in 'Change alley for al most a century. It is known that a street market existed in Paris in 17 2o, for records show that a part of the rue Quincampoix was roped off at the time of the Mississippi Bubble to protect the street traders from the general public. In Boston the curb mar ket operated in Exchange place for years before going into its present building.
New York Curb Exchange had its origin before the Civil War when its meeting place was located in Wall street, near Han over street. During the war it functioned in William street, be tween Exchange place and Beaver street. In those days trading began at 8 A.M. and continued until 6 P.M. or later and, at night, was carried on in the corridors of uptown hotels. From 188o to 1900, it was carried on at all hours in front of the Mills building in Broad street, but after 190o was reduced to a regular session from to A.M. to 3 P.M. Later the open air traders located opposite 44 Broad street, just south of Exchange place. A more closely knit organization was formed in 1908, known as "The New York Curb Agency." The present Exchange, under the name of the "New York Curb Market," or "Market Association," was organized as a voluntary association in 191I. The official title was changed to "New York Curb Exchange" in 1929. Main functions of the Curb Exchange are : (a) To provide a primary market for introducing the securities of such industrial, metal, oil, public utilities or other corporations as are eligible for listing under the listing require ments of the exchange.
(b) To furnish a temporary primary market for the preliminary issue of securities of well known established companies which are being reorganized or are issuing additional stock, usually represented by "rights." (c) To provide a market for issues in the formative or growth period of their corporate existence.
(d) To provide a market for such active stocks or bonds which, for various reasons, are not listed on any other exchange.
The Exchange is governed by a Board composed of 32 Governors, classified as follows: Class A: to be composed of Is regular members of the Exchange.
Class B: to be composed of 12 associate member partners or non-member partners of regular or associate member firms doing business for the public.
Class C: to be composed of three representatives of the public not engaged in the securities business.
Class D: to be composed of the Chairman of the Board and the President of the Exchange.
The New York Curb Exchange does not deal in, or quote any securities listed on the New York Stock exchange, though many securities originally traded in on the Curb are later "gradu ated" and admitted to the New York Stock Exchange. Approxi mately 50% of the stocks listed on the New York Stock Exchange today were formerly dealt in on the New York Curb Exchange. In 1939 there were about 'J o° stock issues and 35o bond issues dealt in on the Curb Exchange, which is a large factor in the finan cial activities of the "Street." It is housed in its own building at 86 Trinity place.