STOCK EXCHANGE, an organization of persons whose business it is to buy and sell stock, bonds, and other securities, municipal, state, or national; or of corporations engaged in mining, transportation, banking, or commerce, in open market at specified times, and under strict rules The New York stock exchange was first regularly organ ized in 1817, but its records were destroyed in the great fire of 1835. A similar organ ization existed in Philadelphia prior to that in New York, after which the latter was patterned. The stocks dealt in were U. S. stocks, state stocks, and city bank and insurance stock. By 1830 railroad stocks had come into the mar:tet—Mohawk, Harlem, etc.; and the Morris and Delaware and Hudson canals. In 1823 the initiaticu fee of the New York stock exchange was $25; in 1827, $100; and in 1833, $150. present a seat in the board is worth $25,000. The number of members is 1060; and is case of the death of a member, his seat is sold, and the sum received paid to his heirs— less any dues or unfulfilled contracts standing against his name. The regulations are very stringent, some of them involving for their breach, expulsion and loss of seat with out Indemnity. A gratuity fund pays to the heirs of any broker who dies in good stand ing, the sum of $10,000, without deductions. About 200,000 shares of stock change hands daily, and the operations frequently cover $1,500,000 value of securities handled. A committee on arbitration settles disputes among members. On the failure of a mem ber of the stock exchange, his assets (stock, bonds, and other securities) are sold at pub lic sale "under the rule," and the proceeds divided among his creditors. The processes of sale in the exchange, though apparently complicated, and impossible for the unin itiated to understand, are in reality simple enough. A call of the list of stocks is made twice a day, as a matter of form; and the government, state, and railroad bonds are called in a room. specially_davoted to that purpose. But the sales are made by the brokers themselves, each one offering whatever stock he has to sell, crying it, aloud, number of shares and price; or naming the price lie offers for a stock, if buying. These cries, which issue from 'several hundred throats at the same time, are readily distin guished and understood by the brokers, and the transactions are closed and noted accu rately. Persons employed for the purpose gather and record as ninny of these sales as possible, and these are sent by the telegraph instrument to all the different offices and places of resort where connecting instruments are kept, where speculators and investors can watch the market, and knowing the fluctuations and indications as they occur, can give their orders to their brokers intelligently. The record of transactions is abbreviated both as to the name of the stock and the nature of the sale. Thus, " L.S. 400:125:8.60,"
means 400 shares of Lake Shore and Michigan Southern railroad stock at $125, to be delivered at the seller's option any time within 60 days. The option is with the buyer if recorded " b.60;" the number of days of course varying according to agreement. The letters ex. mean less dividend. Applied to bonds, c. means coupon, and r. registered; o.b. stands for delivery at the opening of the books of transfer. Stock is bought either for its full value in cash, or on a margin. In the latter instance, the client deposits with his broker 10 per cent of the par value of the stock, thus securing the latter against a loss, since lie can sell if the stock falls to the point which the margin covers; or can call for more margin, selling if the client declines further risk. Those %rho contract to deliver stock at a future day at a fixed price are said to sell sltort, and are technically called " bears," because they desire to squeeze or depress the market. " Bulls." on the contrary, buy stock for a rise, .and are called "long" of the stock, and "bulls" because their interest is to raise the market price. The broker's commission for buying or sell ing is of 1 per cent, except to members of the board, who pay $2 per 100 shares. The business in ".stock privileges," as they are called, is a peculiar one, involving the tech nical terms "puts" and "calls." A broker who sells a "put," agrees to buy a specified stock in a certain number of shares, within a stated time, at a specified price, provided the seller be willing to deliver the stock at the price and time named. If the broker sells a "call," he agrees to deliver a certain number of shares of a given stock on call within a stated time at a specified price. The cost of these privileges is arranged between the parties on the condition of the market, the time involved, etc. For the :purpose of keeping up the gratuity fund for the heirs of deceased members of the exchange, every surviving member is assessed on occasion of a death in the sum of $10. This system, which results in the payment of $10,000 on the occasion of every death, was founded in 1873. It is expected that by 1888 the accumulated fund with its natural increase will render these assessments no longer necessary. The conduct of the business of the stockl exchange is, as has already been remarked, under the strictest regulation, and the instances of dishonesty or impropriety have been, it is said, fewer in proportion to the number of persons engaged, and to the magnitude of the transactions involved, than in any other mercantile business. The stock exchange of New York is situated on Broad and New streets, and Is a hanctsome building, containing probably the largest and strongest vaults for the reception of securities, in the world, and commodious rooms for the transaction of business. Visitors are admitted to a gallery set apart for the purpose.