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reached nearly a billion shares with over $28 billion dollar volume. The number of stocks listed on the registered exchanges fell from 2,961 in 1937 to 2,584 in 1945, and recovered to 2,643 on June 30, 1959. Growth of the issuers is reflected by the increase in their outstanding shares as reported below:

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1 I Net totals of unlisted shares on all exchanges and of shares listed on the exempted exchanges have not been compiled prior to 1943.

•December 31.

Shares listed on the New York Stock Exchange reached half a billion in 1926, 1 billion in 1929, 2 billion in 1948, and 5 billion in 1958. A further increase to 5.46 billion shares listed on this Exchange during the first 6 months of 1959 brings the total shares available for trading on all exchanges to around 7.5 billion as of June 30, 1959. Assets of Domestic Companies with Common Stocks on Exchanges

The assets of all domestic companies having common stocks on the stock exchanges were roughly equal to the $291.4 billion market value of such common stocks on December 31, 1958. The equivalence owes to the preponderance of industrial stocks on the exchanges; it is not unusual for industrial stocks to sell for as much as or more than reported assets. The assets included about $280.8 billion for domestic companies with common stocks listed on registered exchanges and $11.4 billion for domestic companies with common stocks unlisted on the exchanges or listed on the exempted exchanges. The $280.8 billion listed aggregate included $266 billion on the New York Stock Exchange,* $9.8 billion on the American Stock Exchange, and

• New York Stock Exchange "Fact Book, 1959" supplies this Agure for 1957 including some fiscal years ending in 1958. Figures for the other exchanges are for the most part as reported around December 31, 1958.

$5 billion exclusively on regional exchanges. The $11.4 billion unlisted and exempted aggregates included $8.2 billion on the American Stock Exchange and $3.2 billion exclusively on regional exchanges. The assets represent a conglomerate of individual and consolidated company reports and various treatments of such matters as reserves for depreciation.

Foreign Stock on Exchanges

The market value on December 31, 1958, of all shares and certificates representing foreign stocks on the stock exchanges was reported at about $12.5 billion, of which $11.1 billion represented Canadian and $1.4 billion represented other foreign stocks. The market values of the entire Canadian stock issues were included in these aggregates. Most of the other foreign stocks were represented by American depositary receipts or American shares, only the outstanding amounts of which were used in determining market values.

Comparative Over-the-Counter Statistics

Annual over-the-counter transactions of as much as $200 billion United States Government bonds, centered in the offices of 5 banks and 12 specializing dealers, are about 5 times the total bond and stock volumes on all the stock exchanges, and earn for the over-the-counter industry the distinction of being the world's largest securities market. Government bonds have in the past been actively traded on stock exchanges, reaching $2.9 billion per annum on the New York Stock Exchange in the 1919-20 price recovery, but the last significant Exchange volume was reported 20 years ago, in 1939, and current volumes on the Exchange are around $100,000 per annum.

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Securities representing upward of $50 billion State and local government debt are, with few exceptions, sold only over the counter. These bonds are usually issued in serial form, with a comparatively small amount for each maturity date, and have a specialized market owing to their tax-exemption features.

Corporate bond sales on the stock exchanges are only about $1.5 billion per annum, much less than those over-the-counter.

The over-the-counter potential for dealing in stocks is enormous, since there are perhaps a million corporations whose shares might come into the market. However, less than 1 percent of these corporations appear to have the size and share distribution to command a continuing public market for their stocks. The following over-the

'There is activity on the New York Stock Exchange in New York City Transit 3s of 1980, and on the American Stock Exchange in Chicago Transit Authority 34s of 1978.

U.S. Treasury Department "Statistics of Income" reported 924,961 corporation income tax returns for 1956-57, an increase of 82,836 over 1955-56. About 8,500 of the returns accounted for 75 percent of the $949 billion total reported assets. There have been well over 100,000 new incorporations per annum over the past decade and this rate nearly doubled in the first 6 months of 1959 upon passage of laws granting certain tax elections to corporations with not over 10 shareholders.

counter data are derived from a continuing survey of the standard security manuals, the National Quotation Bureau Services, and reports to the Commission.

Somewhat over 700 domestic banks have stocks with 300 or more reported holders which are not on any stock exchange. Practically all are common stocks. Their aggregate market value on December 31, 1958, was about $15 billion, which was close to 10 percent of the $155 billion assets on that date of the issuing banks. The corresponding market value of bank stocks on stock exchanges aggregated about $237 million for 24 issues.?

About 300 domestic insurance companies have stocks with 300 or more reported holders which are not on any stock exchange. Nearly all are common stocks. The aggregate market value of their quoted stocks on December 31, 1958, was about $11.5 billion, which was close to 40 percent of their $29 billion assets on that date. The corresponding value of insurance stocks on stock exchanges aggregated about $1.6 billion for 17 issues of 16 issuers.

About 500 issuers are registered under the Investment Company Act of 1940, and their aggregate assets are about $20 billion. On December 31, 1958, 39 of these issuers, with about $2.2 billion net asset value, had stocks on stock exchanges with about $1.9 billion aggregate market value. Over-the-counter market or redemption values of the remaining issuers' securities would bear a close correspondence to their approximate $17.8 billion net asset value.

About 2,500 additional domestic industrial, utility, and miscellaneous issuers have stocks with 300 or more reported holders which are not on any stock exchange. The aggregate market value on December 31, 1958, of their shares was about $32.5 billion. About $2.5 billion consisted of preferred stocks. The $30 billion common stocks were of companies with aggregate assets of about $39 billion on that date. Nearly all widely-held railroad stocks and a preponderance of widely-held utility and industrial stocks are on exchanges.

In all, some 3,500 domestic corporate issuers (excluding registered investment companies) o have stocks with 300 or more reported hold

7 of the 22 bank stocks remaining on stock exchanges on June 30, 1959, 1 was listed and registered, and 5 were listed and exempted from registration, on the Washington branch of the Philadelphia-Baltimore Stock Exchange, and 16 were listed on the exempted Richmond, Wheeling, and Honolulu Exchanges.

* With 2 exceptions, all investment trust shares on the stock exchanges are of closed-end issuers. Purchases and sales of closed-end investment trust shares are ordinarily made in the open market such as a stock exchange affords. Holders of open-end Investment trust shares ordinarily buy them from distributors and redeem them at their liquidating values. The 2 open-end issuers on stock exchanges are Coca Cola International Corporation and General Capital Corporation, whose shares are listed on the New York Stock Exchange and the Boston Stock Exchange respectively, with no exchange volume reported during 1958 in either issue.

• The use of registered Investment company totals in computing overall securities aggregates would be duplicative to a great extent in that their holdings consist of other securtties, principally listed stocks.

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ers which are not on any stock exchange, and whose aggregate market value on December 31, 1958, was approximately $59 billion. The assets of the issuers having over-the-counter common stocks aggregated about $223 billion on that date, of which nearly 70 percent ($155 billion) was of banks.

As in case of issuers having securities on stock exchanges, to the number of such issuers of over-the-counter stocks has not changed greatly in recent years. The constant additions are substantially offset by losses through new listings on stock exchanges, mergers, sales of assets, liquidations and reduction in number of shareholders in some instances.12 Share price changes have kept pace with those of stocks on stock exchanges. Aggregate share values of $238.8 billion on stock exchanges on December 31, 1955, were about 5.3 times the $45 billion over-the-counter values as computed for that date in our 22d Annual Report (1956), and the $312.7 billion stock exchange values on December 31, 1958, were similarly about 5.3 times the $59 billion overthe-counter values as above computed.

The domestic over-the-counter stock values of $59 billion, as computed above, included $15 billion of stocks of banks, which report to their own regulatory agencies. Of the $44 billion of other stock values, about $24 billion, or over 50 percent, were of issuers reporting to the Commission pursuant to requirements of the Securities Exchange Act of 1934. The $24 billion included about $20.7 billion stocks of domestic issuers reporting under section 15(d) of the 1934 Act, by reason of registrations of securities for public sale,12 and about

» Issuers represented on stock exchanges numbered 2,594 on June 30, 1956, and 2,527 on June 30, 1959, including issuers of both bonds and stocks.

11 Purchases of stocks for control sometimes reduce holders below 300. Holders of preferred stocks, of real estate stocks issued in reorganizations, and of stocks distributed ("spun-of") by large companies to their numerous stockholders tend to decrease over the years.

13 Issuers required to report under section 15(d) of the Securities Exchange Act of 1934 had aggregate quoted values of shares on December 31, 1958, as follows:

Value of Over the counter :

188uera quoted shares Utility, Industrial, etc.

948 $18, 115, 290, 000 Insurance_

87 2, 629, 900,000 Foreign

42 1, 309, 400, 000

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26, 266, 390, 000

Registered Investment companies------
Partnerships, voting trusts, stock purchase plans, etc-

1, 112
225
77

1, 414

529523-59--8

$3.3 billion over-the-counter stocks of issuers reporting because they have other securities listed on registered exchanges.

Taking into account the share values of registered investment companies which do report, and those of banks which do not report to the Commission, it is evident that the total values of shares of domestic issuers reporting to the Commission is more than half of the total domestic over-the-counter share values, as above computed.

DELISTING OF SECURITIES FROM EXCHANGES

Pursuant to rule 12d2–1(b) under section 12(d) of the Securities Exchange Act, applications may be made to the Commission by issuers to withdraw their securities or by exchanges to strike any securities from listing and registration on exchanges. The Commission may not deny such applications if made in accordance with the appropriate exchange rules, but may impose such terms as it may deem necessary for the protection of investors.

During the fiscal year ended June 30, 1959, the Commission granted applications by issuers and exchanges to remove 39 stock issues and 1 bond issue from listing and registration pursuant to rule 12d2–1(b). There were 41 removals, since 1 stock was delisted from 2 exchanges. The number of issuers involved was 37. The removals were as follows: Applications filed by:

New York Stock Exchange..
American Stock Exchange.

0 Cincinnati Stock Exchange..

0 Midwest Stock Exchange.--

3

0 Pacific Coast Stock Exchange..

5

0 Philadelphia-Baltimore Stock Exchange_

5 0 Spokane Stock Exchange-----

1 0 San Francisco Mining Exchange

1

0 Issuers.

0

Stock
issues

15
4

Bond issues

1

1*

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5

Total_.

40

1

*This stock was also delisted from the American Stock Exchange.

The applications by exchanges were based in general upon the ground that the issues were no longer suitable for exchange trading, by reason of reduced public holdings, small values, few holders, inconsequential trading volumes on the exchanges, or a combination of these factors. Some of the issuers were not operating, or were in process of liquidation. Failure to file reports with the exchange was cited in three instances. In six of the applications made by exchanges it was stated that the issuers had requested the action.

The five applications by issuers were for removal of stocks from various regional exchanges. The stocks remained listed on other exchanges where the principal trading volume therein occurred.

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