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 XIV. Speculation and Brokers' Loans

Collection:: Economics Books

CHAPTER XIV SPECULATION AND BROKERS' LOANS UNDOUBTEDLY the contagion of the long bull market had encouraged unwise speculation. But the main trouble was that so much borrowed money was used. It might have been entirely proper had the speculators used their own money in following a gen- erally sound judgment to profit by reasonably expected gains in the future. Speculation in itself may do either good or harm. It does good when it reduces the inequality of prices at different times. It does harm when it aggravates this inequality. In the first case, which may be called the normal one, the interests of the speculator and the public are to a large extent identical. When the speculator is correct in his prognostications, he will make a profit. His object is to make a profit when prices are rising, but he can do so only by mitigating the rise. Likewise his object is to make a profit when prices are falling, but he can do so onlv by mitigating the fall. His profits are, as it were, a reward paid him by the community for mitigating price changes. If he makes a mistake in either form of speculation, he suf- fers losses, and these losses may be regarded as a sort of penalty he suffers for aggravating the inequal- 218

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