Who it is for
For readers interested in bid-ask spreads, dealer economics, liquidity, transaction costs, volatile securities, and the structural disadvantage faced by short-term speculators.
English reader · Project Gutenberg #59518
Chapter XIII. The Short “Turns,” or, Who Makes the Profits?
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 isolates the dealer “turn,” or bid-ask spread, as a fixed cost paid by speculators on entry and exit. He explains why liquid securities have narrow spreads, why volatile or low-quality securities have wide ones, and why high transaction volume can enrich dealers even when individual spreads decline.
Modern reader note
The chapter describes a nineteenth-century jobber market, but the core idea of spreads and liquidity costs remains relevant. Modern order books, electronic market making, best-execution rules, and explicit fees materially change how these costs arise and are measured.
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