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发帖数: 9872 | 1 股市的pump&dump没有新鲜事
Great speculation[edit]
In 1928, Ryan and Rockefeller aggressively speculated on Anaconda shares by
manipulating the supply of copper (reducing supply to corner the market),
causing shares to go up at first; at which point they sold, which caused
stocks to fall; then buying them back. Known today as a "pump and dump", at
the time the actions were not illegal and took place frequently. Anaconda
was producing copper at such a rate they had tremendous stockpiles. To
control prices, the company only sold the requested supply. Under the
pressure of a "joint account" set up by Ryan and Rockefeller of nearly a
million and a half shares of Anaconda Copper Company, prices fluctuated from
$40 in December 1928, to $128 in March 1929. Selling large volumes of
shares rather quickly causes the bottom to fall out of the market; investors
lose confidence and dump their shares, causing a domino effect. Small
investors would purchase blocks of shares on credit, and when they could not
sell at or above the given price, had to sell the shares at a loss when the
banks called on their loans for the purchase of said shares.
Smaller investors were completely wiped out. The results are still
considered one of the greatest fleecings in Wall Street history. The United
States Senate held hearings on the stock manipulations, concluding that
those operations cost the public at the very least, $150 million. A 1933
Senate banking committee called these operations the greatest frauds in
American banking history, a leading cause of the 1929 stock market crash and
1930s depression.[citation needed]
Great Depression[edit]
In 1929 Anaconda Copper Mining Co. issued new stock and used some of the
money to buy shares of speculative companies. When the market crashed on Oct
. 29, 1929, Anaconda suffered serious financial setbacks. At the same time,
copper prices started dropping dramatically. During the winter of 1932–33,
as the Depression expanded, copper prices dropped to 10.3 cents per pound,
down from an average of 29.5 cents per pound only two years earlier.
The Great Depression took a toll in the mining industry; decline in demand
led to the company making massive layoffs in both the United States and
Chile (up to 66 percent unemployment rate in the Chilean mines). On March 26
, 1931, Anaconda cut its dividend rate 40%. John D. Ryan died in 1933 and
was buried in a copper coffin. His mighty Anaconda shares, once worth $175
each, had dropped to $3[8] at the low of the Great Depression. Cornelius
Kelley became the Chairman in 1940. |
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