Who it is for
For readers interested in bid-ask spreads, liquidity risk, dealer information, broker conflicts, market manipulation, position sizing, and the value of staying out of the market.
English reader · Project Gutenberg #59518
Chapter VII. The Pit-Falls
The Theory of Stock Exchange Speculation. English-only reading by default; switch among English, Chinese, and Spanish, or compare languages side by side.
Chapter summary
Crump identifies practical market pit-falls: wide bid-ask spreads, illiquid securities, broker conflicts, concentrated dealer knowledge, organized rigging, and the danger of always carrying open positions. He urges speculators to keep their own counsel, accept moderate profits, and remain out of the market until unusually favorable opportunities appear.
Modern reader note
The examples reflect dealer-based nineteenth-century markets with limited transparency and concentrated liquidity. Modern exchanges still involve spreads, conflicts, and manipulation risk, but market structure, surveillance, and investor protections are materially different.
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