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Name Day

broker, shares, ticket, selling, purchasing, ultimate and jobber

NAME DAY is a Stock Exchange designation for the day preceding the account day. Where a jobber stands as a purchaser of shares he must pass to the broker, on name day, a ticket containing the name of some person, or several persons as the purchaser or purchasers of the shares ; or he may if he pleases pass his own name as the purchaser, in which case only is he bound to take the shares himself. If the jobber fails to pass to the broker such a name or names by the name day, the selling broker can sell out the shares against him, and compel him to pay any loss thereon. Until the name day it is not known who stand ultimately either as purchasers or sellers, or, in other words, who will be the persons to transfer or to take transfers of shares, and until then a jobber may have had a great many transactions both of buying and selling with the same brokers or jobbers or with others. On the name day, in the case supposed, if the jobber having purchased bad sold again, a ticket, containing the name of the person to whom the shares were to be transferred, would have been issued by, and passed on from the ultimate purchasing broker to his seller, and so on through the hands of the intermediate sellers and buyers in succession, who, whether acting as jobbers or as brokers, had dealt in the shares, until it reached the hands of the original selling broker. Every member of the Stock Exchange passing a ticket is required to write on its back the name of the member to whom it is passed ; such ticket should also contain the amount of purchase-money agreed to be given for the shares by the ultimate purchasing broker, and also a note that lie will pay it. So many transactions of this kind take Place during an account, that on the name day the ticket necessarily only remains in the pos. session of an intermediate jobber or broker for the time required to take the particulars of it. It sometimes happens that the same ticket passes through the same member's hands several times in fulfilment of bargains made with other members, and as a matter of fact he has neither the opportunity, time, nor the means for making inquiries respecting the name passed. The original selling broker is not bound to deliver a transfer of the shares to the ultimate purchasing broker until the expiration of ten days after the account day, and during these ten days the purchasing broker cannot buy in the shares against the seller.

During this time it is open to the original selling broker to object to the name passed by his buyer, in which case the latter will pass on the objection to the person from whom he received the name as hereinbefore mentioned ; and practi cally such buyer has no liability or interest in the question, for whatever grounds there might have been for objecting to the name must be met by the person from whom it emanated, and who had originally issued the ticket. The com mittee of the Stock Exchange, if appealed to by the selling broker, will decide as to the validity of such an objection, and will require another name to be given in case they consider it right to do so. But after the lapse of these ten days the selling broker is bound to deliver the certificates and a transfer of the shares to the ultimate purchasing broker ; or, in default thereof, the latter can buy in the shares against the seller. The usual course of business is for the selling broker to deliver the transfer, together with the corresponding ticket, to the ultimate purchasing broker from whom he receives the purchase-money. The ultimate purchasing broker does not know to whom his ticket has been ultimately passed until the delivery of the transfer. According to the rules of the Stock Exchange, if the original selling broker does not deliver his transfer and certificates and obtain payment of the purchase-money within fifteen clear days from the naine day, his immediate buyer is released from all loss caused by the default of the ultimate purchasing broker to pay for the shares, and the latter alone remains responsible. In like manner, if the member who issued the ticket containing the name of the intended transferee of the shares does not buy in, or attempt to buy in, the same shares within fifteen days from the account day, his immediate seller is released from all loss caused by the failure of any member through whose default the shares were not delivered to, and the purchase-money paid by, the ultimate purchasing broker ; the jobber has fulfilled all the obligations required of him by the rules of the Stock Exchange in respect of his contract. (From the evidence in Nickalls v. Merry.) See JOBBER.