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440 called "contracts," but are usually included under the head of "purchases" or "sales."

All these contracts have some time to be performed, and inasmuch as in contracting each of the stockbrokers acts as a principal each is legally bound to the other to perform his part under the terms of any of these contracts. If he fails to do so, every Stock Exchange gives to the other stockbroker an effective and immediate method of liquidating his loss, and will enforce this liquidated claim so far as it is able by suspension of the defaulting stockbroker, and the sale of his "seat" or share in the Exchange. To facilitate stockbrokers in performing the contracts that they make, every Stock Exchange has established rules by which the performance of all contracts made on its floor can be conveniently and expeditiously carried out. In consequence of this, every offer to buy or to sell securities, made on the floor of a Stock Exchange, is understood to contain an implied term to the effect that the contract which will result from its being accepted shall be performed according to the rules of such Stock Exchange. It is to be noted that by these rules the actual performance of any of these contracts takes place away from the Stock Exchange on the floor of which it is made. In spite of this, it is customary to speak of "buying" and "selling" securities "on the floor" or "on the Exchange," and also of purchases and sales being made "on the floor" or "on the Exchange," where it would be more proper to speak of contracting to buy or to sell, and of contracts for the purchase and sale of securities.