88

strength  requisite  to  create  artificial  exceptions
that  an  investor  can  afford  practically  to  disregard ­
  them.
However,  should  it  ever  happen  that  one  of
our  readers  finds  that  some  stock  held  by  him
is  moving  irrespective  of  the  general  trend  of
all  other  prices  controlled  by  the  same  financial
centre,  he  ought  to  bestir  himself  forthwith  to
make  enquiries  into  the  cause  of  this  special
movement,  with  a  view  to  disposing  of  this
particular  security  if  the  reason  for  the  unusual
price-movement  does  not  meet  with  his  approval.
Although  the  course  of  the  country’s  trade
dominates  the  value  of  stocks,  it  is  an  external
influence  which  need  not  necessarily  affect  the
individual  working  of  the  enterprises  themselves. ­
  The  internal  influences  which  affect
the  actual  prosperity  of  a  particular  investment
have  to  be  carefully  considered  by  investors,  as
they  are  a  considerable  factor  in  improving
or  impairing  the  dividend-earning  powers  of
the  stock.
The  dangers  entailed  by  internal  causes
are  to  be  dreaded  because  their  effects  are  so
peculiarly  apt  to  be  permanent.  For  instance,
mismanagement  may  so  completely  cripple  a
company  as  to  make  its  liquidation  or  its  reconstruction ­
  inevitable.  Or,  again,  the  increase
of  trading  competition  may  so  reduce  the  profits