Chapter XVIII Summary and Analysis

Livingston notices the price of Tropical Trading stock has been run way up by the insiders, in spite of the fact that the overall market is going down. Livingston proceeds to start selling their stock short. The insiders keep fighting back by running the stock up again, but Livingston holds his position, knowing the stock must eventually turn. The insiders start spreading rumors about the company to keep the price high and try to knock Livingston out of the market. In retaliation, Livingston sells a large amount of stock in a parent company of Tropical Trading, which makes everyone think there is something wrong with Tropical Trading that only insiders of that parent company know. At this, the price of Tropical Trading drops sharply. This has to be repeated to counteract the inside trading, but eventually Livingston watches the...