1. The Effectiveness of the Securities and Exchange Commission in solving the problems of the Stock Market Crash of 1929 Mr. A. Thompson I.S. 143 (athomps5@schools.nyc.gov

2. The Stock Market Crash of 1929. What do you think happened when the stock market crashed? http://www.livinghistoryfarm.org/farminginthe30s/money_08.html

3. The Stock Market Crash of 1929. An enormous decrease in stock prices on the stock exchanges of Wall Street in late October 1929. This crash began the Great Depression. PPA Step 1: Define the Problem

4. Evidence of the Stock Market Crash of 1929 “When the market finally closed, 9,212,800 shares had been sold. The Times index of 25 industrials fell from 367.42 to 318.29. The whole list showed alarming losses, and margin calls were on their way to those speculators who had not already sold out.” PPA Step 2: Gather the Evidence Leonard, Jonathan Norton, Three Years Down (1944); Allen, Frederick, Lewis, Since Yesterday: the 30's in America (1972).

5. Causes of the Stock Market Crash of 1929 Overvalued Stocks. Some analysts also maintain stocks were heavily overbought; Low Margin Requirements. At the time of the crash, you needed to put down only 10% cash in order to buy stocks. If you wanted to invest $10,000 in stocks, only $1,000 in cash was required; http://rainbowwarrior2005.wordpress.com/2008/10/08/stock-market-historycauses-and-affects/ PPA Step 3: Identifying the Causes

6. Causes of the Stock Market Crash of 1929 Interest Rate Hikes. The Fed aggressively raised interest rates on broker loans. Poor Banking Structures. There were few federal restrictions on start-up capital requirements for new banks. As a result, many banks were highly insolvent. When these banks started to invest heavily in the stock market, the results proved to be devastating, once the market started to crash. By 1932, 40% of all banks in the U.S. had gone out of business. http://rainbowwarrior2005.wordpress.com/2008/10/08/stock-market-historycauses-and-affects PPA Step 3: Identifying the Causes

7. What policies were created to deal with the problems of the Great Depression? The New Deal: A set of programs and policies designed to promote economic recovery and social reform introduced during the 1930s by President Franklin D. Roosevelt. http://www.thefreedictionary.com/Roosevelt's+New+Deal

8. The Securities and Exchange Commission Established by the Securities Exchange Act of 1934. Regulated stock market and restricted margin buying. Example: If someone purchases more than 5% of a company's equity, he or she must report to the SEC within 10 days of the purchase because of the takeover threats it may cause. Step 4: Evaluate an Existing Policy http://home.earthlink.net/~gfeldmeth/chart.newdeal.html http://www.investopedia.com/terms/s/sec.asp#axzz2KRiQqVMW

9. Group task and assignment Discuss and answer the following questions. Was the SEC effective in solving the problems that resulted in the Stock Market Crash of 1929? How can the SEC be improved? PPA Step 5: Develop Solutions