Answer:
The comparison of the stock market in the late 1920s to a "betting ring" suggests that the authors are making a point about the speculative and risky nature of the stock market during that time. By likening it to a betting ring, the authors are implying that participants in the stock market were engaging in speculative behavior similar to gambling.
This comparison highlights the idea that some investors during the late 1920s were not basing their investment decisions on fundamental analysis or a genuine understanding of the companies they were investing in. Instead, they were driven by speculation, hoping to make quick profits by betting on stock prices without considering the underlying value of the companies or the long-term prospects of the market.
Furthermore, comparing the stock market to a betting ring may also suggest that the authors view the behavior in the market as reckless and lacking prudence. It implies that the speculative activities in the stock market during that time were driven more by chance and gambling mentality rather than sound investment principles.
Overall, by drawing a parallel between the stock market and a "betting ring," the authors are highlighting the excessive speculation and risky behavior that characterized the stock market in the late 1920s, ultimately foreshadowing the eventual crash and subsequent Great Depression.