to sell out their clients.

When the market is going down or when there are many movements up and
down in the price of stocks, the bucket shops make money rapidly, but
occasionally there is a long period when the market is working against
the bucket shops, and unless they have a great deal of money they must
fail.

In August, 1921, Stock Exchange stocks started to go up. The upward
movement was very slow but it was continual. Up to the time of this
writing, there has not been a three-point reaction, except in a few
stocks, in all of that time. Without a fluctuating market, the bucket
shop has no chance to clean out its customers. As a consequence, the
bucket shops began to fail in the early part of 1922, and up to the
present writing (April, 1922) there have been more than fifty of these
failures. However, it is not likely that all the bucket shops will be
put out of business. The more successful ones are likely to "weather the
storm."

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.

CHAPTER XIX.

CHOOSING A BROKER

It is very important that you choose a good broker. No matter how
careful you are, it is possible to make a mistake. However, if you
choose a broker who is a member of the New York Stock Exchange, you have
eliminated a very large percentage of your chances of getting a wrong
broker.

Occasionally a member of the Stock Exchange fails and once in a while
one is suspended for running a bucket shop or being connected with one,
but these instances are very rare compared with the number of brokers
who get into trouble who are not members of the New York Stock Exchange.
The rules and regulations of the Stock Exchange protect you to a great
extent.

When you buy stock on margin, you leave your money in the hands of a
broker, and you should know that he is responsible. No matter who your
broker is, you should get a report on him. If you are a subscriber to
Bradstreet's or Dun's Agencies, get a report from them. If you are not a
subscriber to any mercantile agency, you perhaps have a f