Stock Market Expansion and the Ticker’s Siren Song

David Ress ()
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David Ress: University of New England

Chapter Chapter 9 in The Kansas Blue Sky Act of 1911, 2023, pp 125-137 from Springer

Abstract: Abstract Inspired by the gains many saw from selling the Liberty Loan bonds they bought to finance the U.S. military in World War I, the 1920s saw an important shift in how Americans looked at buying shares. Dividend income mattered less, as did the idea of shares represented an ownership interest to be held for a long time. Trading shares for quick profit became the goal. Stock promoters who had marketed the dubious securities the Blue Sky Acts targeted moved to “bucket shop” brokerages, investment banks sold stocks bonds their underwriters knew were trash, as the Pecora committee revealed. The stock market crash of 1929 shattered confidence in shares, but also pointed to an issue of investor protection that state law could not address.

Keywords: 1929 crash; Stock exchanges; Market regulation; Investment banking (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1007/978-3-031-43831-8_9

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