Bucket shop

Definition and stakes

Clifton R. Wooldridge,  Twenty Years a Detective in the Wickedest City in the World

“ The bucket shop proprietor is ready to make all deals offered in any commodity that fluctuates in price. He may call himself [Pg 474] banker and broker, or commission merchant, or disguise his business under the form of an incorporated enterprise or exchange. But he is still a common gambler. The interest of the proprietor of a bucket shop is at all times opposed to that of his patrons, as the profits of the shop are measured by the losses of the patrons. ”
Source: Gutenberg

John James Butler,  Successful Stock Speculation

“ Many laws have been enacted against bucket shops, and we believe some way will be found to get rid of them at some future time; but we do not expect that to happen soon, and we warn our readers not to get into their hands, because if they do not get your money away from you one way they are likely to get it some other way. The man who runs a bucket shop usually has no conscience, and it certainly is an unfortunate thing for anyone to get mixed up with such a man. ”
Source: Gutenberg

John James Butler,  Successful Stock Speculation

“ A broker runs a bucket shop when he sells stock to his clients on margin and either never buys the stock for their accounts, or else sells it immediately after buying it. The bucket shop simply gets your money on the supposition that you are more likely to be wrong than to be right. Of course, if you take the bucket shop's advice you surely are likely to be wrong. Bucket shops get their clients into the very speculative stocks, where there is likely to be a great deal of fluctuation in the price of the stocks, which gives them frequent opportunities to sell out their clients. ”
Source: Gutenberg

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