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 VII. The Age of Mergers

Collection:: Economics Books

102 The Stock Market Crash—dAnd After the stock price level during the long bull market. In the public utilities field, especially, mergers are responsible for the increase of stock prices to some- thing like 26 times earnings up to the market crash in October, while the crash itself brought down the price-earnings ratio to 16 to 1 during November— as against only 1324 to 1 for the average of the whole market during the first nine months of 1929. Records of Merger Earnings Today mergers are generally regarded as inevi- table, because they make for lower production costs. It is true that the reverse is sometimes the case, as the listed securities on the New York Stock Exchange have shown for many years. In fact, between 1922 and 1923, the Federal Trade Commission’s exami- nation of costs and earnings in sixteen industries showed that the largest mergers were not so profit- able as the concerns with investment of between $500,000 and $1,000,000. Of companies en- gaged in crude petroleum production the invest- ment group recording over $25,000,000 capital had slightly smaller profits than companies averaging from $5,000,000 to $25,000,000; whereas in the petroleum refining group the companies averaging $100,000,000 and over showed the same percentage of return on capital investment as those under $1,000,000. These data, the Committee on Recent Economic Changes says, are by no means conclusive for industry as a whole. It notes as “highly sig- nificant” that in eight out of nine large production

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