Who it is for
For readers interested in leverage, foreign sovereign bonds, settlement risk, political shocks, broker incentives, and the consequences of inadequate capital.
English reader · Project Gutenberg #59518
Chapter IX. Speculation without 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
Through a single leveraged foreign-bond example, Crump shows how a lightly capitalized speculator can move from apparent profit to insolvency after an unexpected political shock. The chapter argues that if legitimate trade requires adequate capital, pure speculation requires it even more.
Modern reader note
The example uses nineteenth-century sovereign bonds and fortnightly settlement. Modern margin systems, broker controls, disclosure, and liquidation rules differ, but the underlying mismatch between position size and available capital remains a general risk concept.
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