Morganization

DEFINITION of 'Morganization'

Monopolization techniques used by J.P. Morgan in the nineteenth century. J.P. Morgon used his reputation to lure European financiers into America by taking over an industry and stabilizing it through monopoly. Morgan would then turn the industry into a single, stable, profitable entity that was much more palatable to European bankers.

BREAKING DOWN 'Morganization'

Morgan "morganized" the railroad industry first, taking over small underfinanced companies. He then took over the steel, electricity and banking industries the same way. The solid, steady growth that resulted was successful in transforming the U.S. from a debtor nation to one that was able to lend money to others.

RELATED TERMS
  1. John Pierpont (J.P.) Morgan

    A financier, philanthropist and one of the fathers of corporate ...
  2. Natural Monopoly

    A type of monopoly that exists as a result of the high fixed ...
  3. World Equity Benchmark Series - ...

    A type of international fund traded on the American Stock Exchange ...
  4. Emerging Markets Bond Index - EMBI

    A benchmark index for measuring the total return performance ...
  5. Monopoly

    A situation in which a single company or group owns all or nearly ...
  6. Legal Monopoly

    A company that is operating as a monopoly under a government ...
Related Articles
  1. Investing

    The Kingpin Of Wall Street: J.P. Morgan

    From robber baron to the hero of the Panic of 1907, this man helped shape Wall Street as we know it.
  2. Insights

    J.P. Morgan: Success Story

    Morgan was an obscure, if prosperous, figure until nearly the age of 50. In 1885, he began investing in the railroad industry, where earnings had been gutted by price wars. In 1890 his father ...
  3. Markets

    J.P. Morgan: Early Life and Education

    Morgan’s family had deep roots in the Northeast, predating American independence. His great-great-great-great grandfather, Miles Morgan, sailed to the Massachusetts Bay colony from Wales ...
  4. Insights

    J.P. Morgan: Most Influential Quotes

    “If you have to ask how much it costs, you can’t afford it.” In response to a question about yacht maintenance. “A man generally has two reasons for doing a thing, one ...
  5. Insights

    The Top 5 J.P Morgan Shareholders (JPM)

    Examine the largest shareholders of JP Morgan Chase. Identify ownership patterns and discover how mutual funds and ETFs impact ownership concentration.
  6. Managing Wealth

    Morgan Stanley's Profitablity: Bank on It (MS)

    The economy offers few certainties, but Morgan Stanley's profitability might be one of them.
  7. Markets

    Soft Dollar Prompts JP Morgan Eurozone Downgrade

    J.P. Morgan downgrades eurozone equities amid dollar weakness and euro strength.
  8. Markets

    J.P. Morgan: Famous or Infamous

    J.P. Morgan represents the values of bourgeois capitalism taken to their logical extreme, and as such he is an intensely polarizing figure. It’s easy enough to see why some admire him. ...
  9. Markets

    Shares of J.P. Morgan Jump on Strong Profits

    Shares of J.P. Morgan Chase & Co. (JPM) rose by about 1.5% after it announced stronger than expected Q4 2015 results on Thursday.
  10. Insights

    J.P. Morgan Biography

    John Pierpont Morgan (1837-1913) was a central figure in American finance, with interests in almost every major industry and near complete control of a few, but his influence went well beyond ...
RELATED FAQS
  1. What was the first company with a $1 billion market cap?

    United States Steel Corportation (NYSE:X) was the world's first company to surpass the market capitalization mark of $1 billion ... Read Answer >>
  2. How do I make the transition from a medical school student to an investment banker?

  3. What are common examples of monopolistic markets?

    Discover what causes real instances of market monopoly, how it persists and where monopoly privilege is most common in the ... Read Answer >>
  4. What is a monopoly?

    Monopoly is a fun family game, but in real life, a monopoly can be dangerous to a country's economy. A monopoly occurs when ... Read Answer >>
  5. What do high economic profits in a given industry suggest about that industry?

    Learn how certain industries have high economic profits and what it says about those industries; the key is the industry ... Read Answer >>
  6. Why do bankers incur risk when underwriting?

    Learn why investment banks take on risk when underwriting. Explore examples of investment banks that have underwritten assets ... Read Answer >>
Hot Definitions
  1. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  2. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  3. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  4. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  5. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  6. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
Trading Center