Accordingly, in 1912,a new tariff was adopted regulating the rates of commissions. The charges are as follows: one-eighth per cent on British govern ment securities, Indian government stocks and for eign government bonds; one-fourth per cent on cer tain securities ; one-eighth per cent on railroad stocks of £50 or under and sliding scale ranging from to 2s.6d. per share on shares transferable "by deed." In the case of American securities on prices of $25 or less the commission rate is 6d. per share; $25 to $50, 9d.; $50 to $100, 1 shilling; $100 to $150, is. 6d. and over $200, 2 shillings. Reduction of the commission rates are permitted in the case of large orders cover ing high and low priced securities when a general rate of one-eighth per cent may be applied.
11. Listing securities.—A complete list of securi ties dealt in on the London Stock Exchange is pub lished daily and fills in small type, sixteen full pages as large as an ordinary newspaper. Listing require ments are far less strict than on the New York Stock Exchange. This is largely to be explained by the
operation of the British Companies Act, which makes it much more difficult to float worthless securities in England than in the United States. The existence of different incorporation laws in forty-eight states, some of the laws being very lax, makes it necessary for the American stock exchanges to be especially careful what they admit. In England, of course, there is one uniform law. Another fact to be con sidered is that London has no preparatory market like the New York curb where new securities become sea soned. The theory in London seems to be that every thing should be admitted to the Stock Exchange.
Before the Listing Committee admits a stock, it sees that a certain portion of the shares are sold to the public at large. In addition, the shares that the seller receives for the property cannot be listed un til six months have elapsed after the remaining se curities were offered for public subscription. This prevents "insiders" from dumping their stock on the public.