James Clark McReynolds

“ It is a 'Specialist' in thirteen specified stocks there bought and sold. A 'Specialist' is a qualified member who accepts orders in selected securities from other members for execution.
As such 'Specialist' the firm filled orders either by buying or selling its own securities or by matching like orders of buyer and seller. It leased space on the Exchange floor at an annual rental of $2,000, and there carried on business in the thirteen stocks. The firm was known to all members as a 'Specialist,' and was regularly and consistently engaged in purchases and resales. ”

“ We think the facts stipulated adequately establish that Fried & Co. had an established place of business; that it regularly engaged in the purchase of certain specified securities and their resale to customers; that as a merchant it bought securities and sold them to customers with a view to the gains and profits that might be derived therefrom. ”

“ It is the practice for a member who desires to buy or sell a stock to place his order with the 'Specialist' therein. The firm always had on hand the securities in which it specialized. The number (from 10,300 to 62,300) of shares of these owned by the firm at the end of each month in the year under review is stated. ”