1. The Wall Street Crash

2.  Stocks are Shares in companies  In the USA stocks are bought and sold on Wall Street in New York City.  In the 1920s stocks went up and up and it seemed an easy way to make money.  In 1920 4 million Americans owned stocks  By 1929 20 million Americans owned stocks

4.  Companies raise the money they need for equipment, supplies, staff, etc, through investors. The investors own a share of the company, and become “ shareholders ”.  Investors earn money on their investment by either receiving a monthly interest payment (dividend) or by selling their shares for more than they paid.  Prices of stocks were printed out on ticker-tape machines.

7. the symbol of aggressiveaggressive financial optimism and prosperity by Arturo Di Modica. Cost $360,000 to create, cast, and install the sculpture following the 1987 stock market crash …Called an act of "guerrilla art"Arturo Di Modica1987 stock market crashguerrilla art

8.  A form of gambling with stocks  Speculators borrow money to buy shares and sell them again when the price has risen  In the 1920s speculators bought on margin, paying only 10% percent of the value of the stock and owing the rest.  Banks lent $9,000,000,000 for speculating in 1929.  [ Women speculators owned over 50% of the Pennsylvania Railroad, which became known as the Petticoat Line!]

9.  In the late 1920s, though people did not realize it at the time, the US faced a crises of over- production. Industry was producing more than it could sell. The market was running out of customers.

10.  In the autumn of 1929 some people, recognizing the over-production crises, started selling their stocks.  Suddenly there was a panic and everyone rushed to sell their stocks.  Prices plummeted.  For example: one cigar company fell from $113 per stock to $4 in one day.  The great sell-off was due to a sudden lack of confidence. ….No one buys stocks and so the prices drop.

11.  Share prices fell by 80%  No investment in industry  Industrial production fell by 40%  Wages went down by 60%  Unemployment: 14 million people lost their jobs  People had less money and so they bought less  This meant there was no demand for goods

12. Black Thursday Bankers and wealthy investors Rushed in to buy stocks which ended the selling panic – for now

13. Over the weekend people worried and on TUESDAY OCTOBER 29 th, the fall in stock prices was so drastic, and so quick that no one could come in and turn the situation around…

16.  Banks had loaned money to speculators and they “called in” their loans  Speculators were ruined had to repay the loan but now had worthless stocks.  Speculators and anyone who invested heavily in shares were ruined  The Vanderbilt family lost $40,000,000  PEOPLE LOST CONFIDENCE IN BANKS and banks began to fail, 5000 went broke in 1930, and 2300 in 1931  an ECONOMIC DEPRESSION SET IN