STOCKBROKING TRANSACTIONS. When a banker is requested by a customer to instruct his brokers to purchase or sell certain stocks or shares, the request should be made in writing so that no mistake or misunder standing may arise. In the case of a sale, it should be signed by the person in whose name the stocks or shares are registered ; if registered in several names, the signature of each person should be appended. The order should contain a precise description of the security, a note of the amount of stock or number of shares to be sold, and the price at which the sale is to be effected. The order is usually to sell at " not less than per cent.," or per share ; or it may be to sell " at best price." In the case of a purchase, it should be particularly noted whether the customer wishes to invest a sum of, say, £500 in a given stock or to purchase £500 of the stock. Equal care is necessary in transmitting the order to the brokers, otherwise an unlooked for result may be produced. The order may
be to purchase at " the lowest price," or at " not more than ,1_," per cent.," or per share. When the cost is known, a cheque is obtained from the customer for the amount, unless the order includes an authority to charge the amount to the account of the person signing the order. The latter plan is the better one. The amount is either credited to the banker's London agents or London office to meet the purchase, or is placed to a separate account until the brokers draw for the money.
A purchase or sale may be effected either " for cash " or " for the account " and the customer should instruct as desired.
An order to buy or sell is not subject to stamp duty ; if an order to buy includes an authority to charge the purchase price to the customer's account it is said not to re quire a stamp, but as such an order practi cally acts as a cheque some bankers consider that it should bear a penny stamp.