Investment, an exact science

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Monograph

Identifikator:: 865521182

URN:: urn:nbn:de:zbw-retromon-48767

Document type:: Monograph

Author:: Lowenfeld, Henry

Title:: Investment, an exact science

Place of publication:: London

Publisher:: The Financial Review of Reviews

Year of publication:: 1906

Scope:: 1 Online-Ressource (X, 160 Seiten)

Collection:: Economics Books

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Document type:: Monograph

Structure type:: Chapter

Title:: Chapter I - On investment risks

Collection:: Economics Books

12 often happens that a stock either gradually improves or deteriorates in stability in direct ratio with an improvement or a deterioration in its desirability as an investment ; for example, the average annual fluctuation of Grand Trunk Railway Second Preference Stock in 1901, based on the preceding three years, was about 30 per cent. ; whereas the average annual fluctuation at the present time, based on the last three years, is under 10 per cent. In such case the stock must be treated as if it were a new stock which has not yet found its proper market position, and, to minimise the element of chance, it should be avoided until the per manence of the average annual fluctuation of the stock, at its altered level, can be appreciated at its true limits. Again, in selecting stocks that are subject to different market influences, it must be re membered that the chief market for any particular security is liable to transposition. By market influence we mean the influence created by the general investment conditions obtaining on the Stock Exchange in which the stock is mainly dealt in. Thus, a few years ago a number of the bond issues of American Railways were chiefly held in this country, and the principal market for them was accordingly the London Stock Exchange. But, owing to

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