Market Speculation Too Great A Risk?. The American Dream Goal: Achieve permanent prosperity Belief: Everyone can be rich by investing money in the stock.

Slides:

Advertisements

Similar presentations

The Great Depression Chapter 22 Sec 1&2 Many American industries werent making large profits. –Steel, railroads, cars, construction, coal mining, lumber.

Advertisements

STOCK MARKET CRASH The Crash BEGINS Oct. 21, Stock market plunged, brokers made margin calls, customers put stocks up for sale Oct. 24 (Black.

Were still arguing about it but the culprits likely were: Underinvestment, underconsumption, monetary policy and trade wars.

Election of 1928 Hebert Hoover wins in a landslide.

Causes of the Stock Market Crash

The Causes of the Great Depression

Stock Market Crash (1929) Students will understand the causes and importance of the Stock Market Crash –Crash marks the beginning of the Great Depression.

The Great Depression. Rising Market  The rising stock market dominated the news  People who were invested were waiting for the fall of the Market, so.

The Great Depression Economic Disaster ( )

Warm-Up People who own stock in companies may receive cash payments based on how much profit the companies make. Name 2 companies you would invest in.

The Stock Market Crash Mr. Dodson.

The Stock Market Crash of 1929 and the beginning of the Great Depression.

The Market Crashes The market crash in October of 1929 happened very quickly. In September, the Dow Jones Industrial Average, an average of stock prices.

Chapter 11 Section 1 The Causes of the Great Depression

Ch. 11 The Great Depression

The Great Depression How was a decade of prosperity followed by a decade of hopelessness?

The stock Market Crash of s Booming Economy Wages up 40% after WWI Stock Market was soaring Many people investing – get rich quick schemes 1920s.

20’s and Crash Notecards Roaring 20’s  Term used to refer to the 1920’s when the economy was booming and people were living good lives.  Characterized.

Topic: Stock Market Crash 1.People bought stock to invest in companies. 2.Stock prices began to rise and people began to borrow money.

The Crash of Vocabulary  Stock- a share in business ownership.  Speculation- a risky business venture involving buying or selling property in.

Chapter 24 THE GREAT DEPRESSION

DESCRIBE SOCIAL AND ECONOMIC CONDITIONS FROM THE 1920S THROUGH THE GREAT DEPRESSION REGARDING FACTORS LEADING TO A DEEPENING CRISIS, INCLUDING THE COLLAPSE.

THE STOCK MARKET CRASH AND THE GREAT DEPRESSION EVENTS THAT HELPED CAUSE THE STOCK MARKET CRASH: 1. OVERSPECULATION: Stock prices had risen far above the.

PROSPERITY TO THE CRASH. Goals for today  Understand the major causes and effects of the stock market crash and the Great Depression.

11:1 Causes of the Great Depression Election of 1928

The Stock Market Crash Angela Brown Chapter 22 Section 2.

Identify the causes and consequences of the great depression.

Basic Facts about buying stocks A person who buys stock becomes one of the company’s owners. The purchase leads to a share of a company. A bond is an agreement.

The Great Depression The Crash & It’s Causes. The CRASH Thursday, October 24, 1929 sell, Sell, SELL! Five leading NY bankers meet at noon, secretly pump.

The Causes of the Great Depression

Causes of the Great Depression

BELLWORK 1. List three factors that contributed to economic growth in the 1920’s. 2. What is consumerism? 3. What are the pros/cons of buying on credit?

The Great Depression The Economy in the Late 1920’s.

LONG TERM CAUSES OF THE GREAT DEPRESSION

CAUSES OF THE GREAT DEPRESSION. AMERICA MADE LOTS OF MONEY DURING THE 1920S Higher productivity and consumer demand (people wanting to buy things) led.

Causes of The Great Depression

The Great Depression and the New Deal Mr. Leasure BHVSD: Harrison Career Center Winter 2013.

Optimistic mood where everything seemed fine People put savings into stock market hoping to get rich.

Customers deposit money in a bank Banks invest that money by making loans Banks make money on the interest from loans.

Prohibition Hoover: Dry Smith: Wet Religion Smear campaign against Smith who believed the Catholic Church financed the Dem Party and would rule the.

Causes of the Great Depression. Stock Market Soars Bull Market- long period of rising stock prices In the late 1920’s, a bull market had many people investing.

 The 1928 election placed former head of the Food Administration and secretary of commerce, Herbert Hoover, on the Republican ticket against Democratic.

(top left side) Opener: What would happen if you spent more money than you actually had?

Chapter 15 Section 1 The Stock Market Crash and the end to “wonderful prosperity”

The Stock Market Crash Chapter The Nation’s Sick Economy The prosperity of the 1920s was superficial: Major industries are not making a profit;

The Economics of the Great Depression Mr. Bach United States History.

BELLWORK 1. List three factors that contributed to economic growth in the 1920’s. 2. How were the post-WWI economies of Canada and Latin America similar?

Causes of the Great Depression Mr. Blais America in the World (TVP)

Chapter 9 The Great Depression

The Stock Market and the Great Depression Watching the economy crumble.

Find a partner and pick up one of the handouts from the front of the room. You only need one handout per pair. Today is going to be AWESOME!!! I.

CAUSES OF THE GREAT DEPRESSION. Today’s Objective ◦ After today’s lesson, students will be able to… ◦ Explain the underlying economic factors and causes.

 A market in which stocks are down  Those who buy and sell stocks.

 What events led to the stock market’s Great Crash in 1929?  Why did the Great Crash produce a ripple effect throughout the nation’s economy?  What.

Chapter 22 The Great Depression Begins Section 1 Causes of the Depression.

Causes of the Great Depression. Possible Causes of the Great Depression Stock Market Crash Over production Unequal distribution of wealth Consumerist.

22-1: The Nation’s Sick Economy. Industry Key industries barely made a profit Some industries lost business to foreign competition and new American technologies.

Chapter 24 The Great Depression Section 1 Prosperity Shattered.

CAUSES OF THE GREAT DEPRESSION What caused the most severe economic crisis in American history?

 The day that many view the Great Depression starting was Black Tuesday.  Black Tuesday: October 29,  This was the day that the stock market.

The Wall Street Crash.  Stocks are Shares in companies  In the USA stocks are bought and sold on Wall Street in New York City.  In the 1920s stocks.

Europe in 20s trying to recover from war War Debt GermanyFrance Great BritainUnited States Difficult for U.S. companies to sell products to Europe Tariff:

Ripple Effects of the Crash and Depression. Stock Market Crash.

The stock Market Crash of 1929

Causes of the Great Depression

The Stock Market Crash of 1929

Causes of the Great Depression

In your notes create a list of how life was good in the Roaring 20’s.

The Stock Market Crash of 1929

Presentation transcript:

Market Speculation Too Great A Risk?

The American Dream Goal: Achieve permanent prosperity Belief: Everyone can be rich by investing money in the stock market Result: Thousands poured savings into the market Downfall: They wanted to make their fortune immediately

Speculation Buying stocks they thought would quickly rise in price After stock price rises, sell for a quick profit Very profitable venture b/n See Chart pg 419 Very attractive gamble

Buying on the Margin Common practice Perks To buy $500 worth of stock, you didnt need $500 up front Down payment of as little as 5% ($25 in our example) Borrowed the rest from a stockbroker (loan) With $500, you could buy $10,000 worth of stock Stock rises, Sell, Pay broker back, Make a profit

Buying on the Margin Risks Stockbroker can make investor pay off loan at anytime If investor could not pay, broker keeps the stock (collateral)

Saturation of the Market 1929: $6 billion in margin loans Brokers called in investors Investors could not pay, so they sold their stocks What happens to the market? Other investors see the downturn of the market, panic, and sell their stocks Domino effect: by October 29, 1929 the bottom fell out of the market

Great Depression Begins Millionaires were in debt Banks lost their reserve money as debtors could not repay loans Money invested in a savings account at a bank vanished to pay off bank notes Banks were not federally insured Millions of innocent Americans lost all their savings