The Stock Market, Credit and Capital Formation

Appendix A: The Movements in Ledger Balances of Banks and Brokers Arising out of Stock Exchange Operations

APPENDIX A

THE MOVEMENTS IN LEDGER BALANCES OF BANKS AND BROKERS ARISING OUT OF STOCK-EXCHANGE OPERATIONS

The five illustrations in Chapter VII are followed up here in the form of daily movements of ledger balances. The essential items in the balance sheets of banks and brokers at the outset are the following:

Only the changes in these items, as resulting from the operations discussed in the text, will be shown here. The various customers will be denoted by the letters A, B, C, &c, their brokers by A1, B1, C1, &c.

What is the Mises Institute?

The Mises Institute is a non-profit organization that exists to promote teaching and research in the Austrian School of economics, individual freedom, honest history, and international peace, in the tradition of Ludwig von Mises and Murray N. Rothbard.

Non-political, non-partisan, and non-PC, we advocate a radical shift in the intellectual climate, away from statism and toward a private property order. We believe that our foundational ideas are of permanent value, and oppose all efforts at compromise, sellout, and amalgamation of these ideas with fashionable political, cultural, and social doctrines inimical to their spirit.

Become a Member