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. Emerging Markets Bond Index - EMBI

    A benchmark index for measuring the total return performance ...
  4. World Equity Benchmark Series - ...

    A type of international fund traded on the American Stock Exchange ...
  5. Sell Side

    The part of the financial industry involved with the creation, ...
  6. Legal Monopoly

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

    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. Investing

    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.
  3. Investing

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

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

    Soft Dollar Prompts JP Morgan Eurozone Downgrade

    J.P. Morgan downgrades eurozone equities amid dollar weakness and euro strength.
  5. 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. 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 >>
  3. 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 >>
  4. 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 >>
  5. 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. Cash Flow

    The net amount of cash and cash-equivalents moving into and out of a business. Positive cash flow indicates that a company's ...
  2. PLUS Loan

    A low-cost student loan offered to parents of students currently enrolled in post-secondary education. With a PLUS Loan, ...
  3. Graduate Record Examination - GRE

    A standardized exam used to measure one's aptitude for abstract thinking in the areas of analytical writing, mathematics ...
  4. Graduate Management Admission Test - GMAT

    A standardized test intended to measure a test taker's aptitude in mathematics and the English language. The GMAT is most ...
  5. Magna Cum Laude

    An academic level of distinction used by educational institutions to signify an academic degree which was received "with ...
  6. Cover Letter

    A written document submitted with a job application explaining the applicant's credentials and interest in the open position. ...
Trading Center