STOCK Stock Exchange is a market for the sale and purchase of stocks and shares. The principal Stock Exchange in the world is that in London, though in practically the same rank are those of such great cities as New York (commonly called " Wall Street," as the London exchange is often referred to as " Capel Court"), Paris, Berlin, Frankfort, and Vienna. But London being the centre of the financial world it is inevitable that its exchange should occupy a position of indisputable pre eminence. Besides these great national exchanges there are also provincial exchanges in many of the leading cities of commercial countries. Of such in the United Kingdom may be instanced the exchanges at Glasgow, Dublin, Liverpool, Manchester, Birtningham, and Bristol.
The London Stock Exchange is a society carrying on business upon premises belonging to a joint-stock company, the shareholders of which must be members of the exchange. It is governed by a committee elected from its members. This committee regulates the transaction of business by making and enforcing the observance of certain rules and regulations known as the Rules of the Stock Exchange, and to these rules the members are subject, as also are other persons in respect of their dealings on the exchange. Besides the written rules there is also the practice of the exchange, or, as it has been called, the unwritten comment on those rules from the usage of those who in everyday use apply those rules. The Stock Exchange is thus to a very great extent a law unto itself; so much so that members of the public who engage in Stock Exchange dealings are frequently surprised to find the ordinary rules of the law of contract are excluded from application, and that a large number of the decisions of the courts have no relevancy to any but a Stock Exchange case. The effect of the rules and usages of the Stock Exchange has been well stated by Mr. Justice Blackburn in Maxted v. Paine. The great and main object of the members in establishing a periodical account and making their rules as to NAME DAYS and settling days [see SETTLEMENT] and tickets was apparently the same as that which led to the establishment of the CLEARING-HOUSE, and which was, in short, that the number of actual transfers and payments should be reduced to a mininium, and that all that can be done by setting off one contract against another, and settling them in account without any actual transfer or payment of cash, should be done. " And notwithstanding," said the learned
judge, " what I cannot help thinking the mistaken objections of the lawyers of the past generation against settling matters in account, I think this is a laudable and convenient object." In order to obtain admission as a member of the Stock Exchange it is necessary that a candidate should have served either two or four years as a clerk to a member. Five hundred or 250 guineas is the fee on admission, and 1'49. is the amount of the annual subscription. The higher entrance fee is payable by a two-years' clerk, who must also find sureties in three members, and the lower fee is payable by a four-years' clerk, who need only find two sureties. When admitted the member carries on business either as a broker or JOBBER. The committee do not allow members to act in the double capacity ; nor do they sanction partnerships between brokers and jobbers. A jobber should not do business with an out sider without the intervention of a broker; and it may be said that even if two brokers come together, one wanting to buy and the other to sell, the bargain should pass through a jobber's books. A broker cannot therefore deal as principal with his client, quoting prices at which he will deal. The practice of carrying-over has created, however, some exceptions to this rule. Members are particularly cautioned by the committee against transacting speculative business directly or indirectly, for or with, officials or clerks in public or private establishments without the knowledge of their employers. See STOCKBROKER.
STOP a person interested in a fund in court has assigned or mortgaged such interest, the assignee or mortgagee is entitled to an order from the Court preventing the fund being dealt with to his prejudice. Such an order is called a " Stop-order."