Playing the Market

Abstract

Abstract At the dawn of World War I (WWI), the British stock market was the preserve of a wealthy elite, and most people in finance and politics agreed that it should stay this way. By the end of the century, Britain had more individual shareholders than trade union members. This book explores the financial, political, and cultural forces that brought about this dramatic change in British society. By capturing the voices and experiences of everyday investors, this study brings to life the history of Britain’s vibrant stock market culture: from the mass investment in war bonds during WWI, through the expansion of the financial press in the post-war decades, to the ‘popular capitalism’ of Margaret Thatcher’s Conservative Party during the 1980s. Throughout the century, the stock market came to play an ever larger role in people’s lives through pension funds and life insurances. But as financial securities lost their age-old stigma of being either immoral or suitable only for the upper classes, the markets also became a popular pastime for millions of Britons who were seeking higher than average returns and a similar thrill of risk and reward to that of gambling on horses or the football pools. Playing the Market forcefully reminds us that gambling is not—as many financial professionals would have us believe—a parasitical element to the otherwise rational and prudent sphere of modern finance. Instead, it is one of its constituent features and explains why until this day, the stock market is either criticized or celebrated as a casino.