Who it is for
For readers interested in capital requirements, leverage, collateralized stock loans, post-crisis investing, underwriting, liquidity, and settlement discipline.
English reader · Project Gutenberg #59518
Chapter VIII. Speculation with Capital
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 argues that capital is indispensable to speculation because it supports credibility, absorbs adverse movements, permits strategic feints, and allows investors to exploit depressed securities after commercial crises. He presents leveraged purchases of sound railway stocks as one of the more legitimate speculative forms, while praising frequent cash settlements as a safeguard against excessive liabilities.
Modern reader note
The chapter describes nineteenth-century railway securities, bilateral bank loans, cash settlement, and underwriting practice. Its leverage example omits many modern risks, regulations, taxes, and liquidity constraints and should not be treated as a current investment strategy.
Loading chapter text...