The stock market crash - and after

Bibliographic data

Monograph

Identifikator:: 1815583320

URN:: urn:nbn:de:zbw-retromon-204544

Document type:: Monograph

Author:: Fisher, Irving http://d-nb.info/gnd/118533541

Title:: The stock market crash - and after

Place of publication:: New York

Publisher:: Macmillan

Year of publication:: 1930

Scope:: XXVI, 286 S.; graph. Darst

Digitisation:: 2022

Collection:: Economics Books

Usage license:: Get license information via the feedback formular.

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Chapter XIII. Flight from Bonds to Stocks

Collection:: Economics Books

204 The Stock Market Crash—And After only way to stabilize income from bonds is to buy stocks as well, these also being diversified. The truth is, there is no way to get the gamble out of life altogether. Neither stocks nor bonds are really “safe” as to purchasing power. But the individual investor is at a great advantage when he pools his earnings and savings of those of a multitude of others in an investment trust, which with the aid of expert counsel keeps it invested in well-selected diver- sified stocks and preferred securities. Taking Risk from Speculation A little reasoning permits of a startling corollary. It is this: If we can, by sufficient diversification in investments, get a greater certainty and thus run less risks from our speculation, then the more un- safe the investments are, taken individually, the safer they are taken collectively, to say nothing of profit ableness, provided that the diversification is suffi ciently increased. This paradox is derived directly from exploiting the old-fashioned fear of common stocks and the consequent refusal to deal in them, except well be- low their “mathematical value.” Now, the mathematical value of a prize at stake is that prize multiplied by the chance of winning it. If a man stakes a dollar on “heads” coming up, the mathematical value of that chance is exactly fifty cents, because there is exactly one chance in two that “heads” will come up. If the prize at stake is

Access restriction

Copyright

fullscreen: The stock market crash - and after

Monograph

Chapter

Table of contents

Download

Monograph

Chapter

This page

Image fragment

Citation links

Citation recommendation