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Long before GameStop, Wall Street’s legitimacy was challenged by ‘bucket shops’ in 19th century For some, bucket shops were a ‘shadow market’. For others, a ‘financial netherworld’. Feb 03, 2021 · 07:30 pm ‘Watching the tape or watching the wheel - what is the difference morally?’, illustration by Will Crawford c.1912. | Puck Magazine/Library of Congress The gleeful manipulation of GameStop’s share price is not the first time amateur investors have created a legitimacy crisis on Wall Street. In the late 19th century, so-called “bucket shops” a...

The gleeful manipulation of GameStop’s share price is not the first time amateur investors have created a legitimacy crisis on Wall Street. In the late 19th century, so-called “bucket shops” allowed the American public to gamble small amounts on the movement of stocks and commodities on the New York and Chicago exchanges. In most cases, a bucket shop client wouldn’t own the stock they wagered on: the shop acted more like a bookmaker than a broker, with clients betting against the house that a certain stock would rise. Historian David Hochfelder describes bucket shops as a “shadow...