The Stock Exchange from WithinVan Antwerp, William C. (William Clarkson)
History
The Stock Exchange from Within
Van Antwerp, William C. (William Clarkson)
New York Stock Exchange; Stock exchanges
But they are not honest, because in the large majority of such
transactions the prices are “rigged,” that is to say, the bandits
who run the shop run it to win and not to lose, and “fix” the prices
accordingly. The player is thus required to give odds by laying 3 to 4
not on what the price of a stock will be, which is ruinous enough in
all conscience, but on what his opponent will choose to make it! Since
we are talking of gambling now and not of any real transaction, we may
as well adopt the vernacular of the fraternity and say plainly that the
bucket-shop man holds the stakes, cuts, shuffles, and deals the cards,
and then telegraphs you what your hand is. And the loser at this joyous
pastime thinks he has been robbed by Wall Street.
The game works against the player in yet another sense, as the _Wall
Street Journal_ points out, for when you buy stock you are entitled
not merely to the stock itself, but to all the privileges which it
carries, and not the least of these privileges is the effect which
your purchase will have on the market. That is to say, if ten thousand
purchasers throughout the country should buy even small amounts of
a certain stock on a given day, the combined effect of all these
purchases would undoubtedly lift its price on the Stock Exchange, and
thus we see that each buyer’s action carries with it a privilege of
no inconsiderable proportions. But the keeper of the bucket-shop does
not buy any stock for you at all; he merely makes a bet with you as to
what the price will be--and so, having robbed you of your money, he now
robs you of the privilege which goes with your money, since the alleged
purchase of a million shares of your stock in bucket-shops would not
have the slightest influence on its price at the Stock Exchange.
The man who has saved money by his own enterprise and thrift is a
fool if he gives his savings to mining “bonanzas” through the itching
palms of promoters, or to bucket-shops through the lure of slender
margins. The very fact that promoters always play upon the theory that
distance will lend enchantment to the view, and solicit their funds
solely by means of prospectuses, should be a sufficient warning to the
most credulous. A word to his banker, or a letter to any responsible
institution in Wall Street, will supply him with the necessary
information and save him from the possibility of loss.
Public-domain text, read in full here on John Shaqi.
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