Why Stock Brokers Use Baskets
A basket is typically a wooden container fashioned from hardwoods and is made using a variety of materials, such as wood, wicker, cane, and plastic. While most baskets produced today are made of synthetic materials, some materials like metal wire or horsehair may be used. Baskets generally are woven manually. In some countries basket weaving is an art, while in the United States industrial basket weaving is done mainly for manufacturing purposes. The materials used in basket weaving and their properties are known as “weaves.” Although modern basket weaving techniques have been developed, the basic pattern and construction is known for centuries.
Historically, a basket was a type of gourd that was used to collect wild herbs and plants from the wilderness. The term for woven baskets dates back to early Greek mythology. In Greek mythology, the nymph Okelette was the mother of Odysseus. She used a woven basket to catch fish to eat on her return home from war and to weave the fish to make a magic wand to carry with him to Troy.
Basket makers typically use a frame made of reed, twine or cedar wood to build a frame for the basket. The handle is then shaped from lambskin or leather in most cases and the basket is then finished with natural or artificial flowers, leaves, grasses, fruits, seeds or vegetables. Most manufacturers order their baskets in standard shapes and sizes. When ordering a basket it is wise to inquire about whether any special requests can be made and if so, when they will be delivered.
When making basket orders the basket manufacturer requires three items: security, size and design. The security of the basket is dependent on whether it will be large or small. The size and design criteria are dependent on whether the basket will have a handle or not. The basket must be large enough to accommodate all the contents and must be secure at all times. All securities must meet the federal regulations set forth in the Security Act of 1963.
Once the basket has been assembled it must meet all applicable Federal and state laws. After this is completed the basket must be shipped to the carrier which is responsible for transporting the basket with the proper insurance coverage in the case of a loss or theft. Most carriers require that the basket be accompanied with a certificate of authenticity. The certificate of authenticity is required because the contents of the basket must conform to all the standards set forth by the United States Food and Drug Administration (FDA). It is also required that the basket meet a minimum number of categories of securities.
Most stock broking companies have an extensive menu of stock baskets that are available to their clients. Many companies have multiple baskets that are available depending on the levels of security that are required for the various types of baskets. There are several different types of baskets that are used by many traders. However, one type of basket remains to be the most popular. This basket order is known as a “basket-on-board” order and is usually the most secure and efficient method of receiving and distributing all types of stock.