Each stock exchange has certain rules which must be complied with before a security may be traded in thereon. There must be submitted to certain officers of an exchange a description of the security in such a tangible form that any one may satisfy himself as to every detail and particular of the property represented.

1 W. W. Carlile thinks that "liquidity " as applied to assets " can mean nothing else but the possession of a value that is not liable to fluctuate." - "Economic Method and Economic Faltocies"

Furthermore, at regular intervals there must be furnished a statement of the financial condition and earnings of each company whose securities have been listed. In the New York Stock Exchange there is a "Stock List Committee," which receives and considers all applications for placing securities upon the "list" of the exchange, and makes report and recommendation thereon to the " Governing Committee," giving full statement of earning, organization, capitalization, resources and indebtedness. This committee has charge of the arrangement and revision of the regular "list" of securities. "Listed" securities, therefore, have, to a certain extent, the approval of the exchange, and it is understood that the corporations which they represent are furnishing to the exchange sworn statements of their financial condition and earnings as required.

The investor or speculator must not be deluded, however, into believing that just because a security is " listed " upon an exchange, it follows that it is any better than some other security not so favoured. " Listing " simply means that facts and figures in relation to the security are given more or less publicity; that is, are available to the public; but the stock exchange in no way stands sponsor for the intrinsic merits of any security "listed" thereon.