1929 and the Stock Market S. Todd CHC 2DI. Stock -the capital (money) raised by a corporation through the issue of shares entitling holders to an ownership.

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1929 and the Stock Market S. Todd CHC 2DI

Stock -the capital (money) raised by a corporation through the issue of shares entitling holders to an ownership interest

Share -certificate representing one unit of stock in a company or mutual fund Eg. One share in Research in Motion (RIM) is $74.03 (March 21, 2010)

Stock Market -is a public market (a loose network of economic transactions) for the purchase of public stock at an agreed price

Many of the new companies of the 1920s were started with investment money raised on the stock market To raise money, the companies sell stocks, or shares, in their business to shareholders In return, the investors are entitled to a portion of any profit the company earns

Between 1922 and 1926, it was a great time for investors to buy shares… investors, comparnies, etc. were all making lots of money -this was why it was called the “Roaring Twenties” – people were getting rich! -in fact, some investors even started to buy shares on credit to make quick money and then pay the loan back

However, by September 1929, lots of investors started to sell off their stocks to cash in on high prices Lots of people started to follow their lead and eventually, the stock market was flooded with stocks for sale When this happened, the value of shares went down so dramatically that the stock market “crashed”

On October 29, 1929 the New York Stock Market totally collapsed and as a result, other global markets (i.e. Toronto Stock Exchange) did so as well Many Canadians lost everything and so commenced The Great Depression