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THE STOCK MARKET OF THE 1920S.

Published byRuth Anthony Modified over 4 years ago

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Presentation on theme: "THE STOCK MARKET OF THE 1920S."— Presentation transcript:

1 THE STOCK MARKET OF THE 1920S.
1) GET A STOCK PROSPECTUS AND READ FOR COMPANY INFORMATION 2) RECEIVE $500 (4 ONE HUNDREDS, 1 FIFTY AND 5 TENS) 3) OPENING PRICE PER SHARE IS $10 4) EACH STOCK CERTIFICATE REPRESENTS 10 SHARES. THEREFORE EACH CERTIFICATE WILL COST $100 5) YOU WILL HAVE APPROXIMATELY 5 MINUTES TO BUY OR SELL STOCKS FOR EACH SESSION FROM THE BROKERS

2 Your Job To amass as much money as you possibly can and keep it for as long as you can. There are several paths you may take. But there is risk in each. 2

3 Figure out what you want to buy
When the opening bell rings talk with one of the stock brokers. Buy or sell stock. Each buy/sell session will last a few minutes.

4 THE STOCK MARKET OF THE 1920S.
OPENING PRICE PER SHARE KROGER……………………………………………………… RADIO CORPORATION…………………………………….. MAMMOTH OIL……………………………………………... GOTHAM BANK…………………………………………….. DURANT MOTORS………………………………………….. MIDLAND POWER………………………………………….. KANSAS AND PACIFIC…………………………………….. TEL - TONE………………………………………………….. 10 4

5 OUTCOMES 1920 NEW STOCK PRICE PER SHARE
KROGER - PURCHASE A WEST COAST FOOD CHAIN……………………………….. RADIO CORPORATION - NEW MODEL RELEASED WITH BUILT IN ANTENNA…... MAMMOTH OIL - NINE WELLS BEGIN PRODUCING IN WYOMING FIELD………... GOTHAM BANK - BANK DECLARES 6% DIVIDEND…………………………………….. DURANT MOTORS - FAILS TO MAKE PAYMENTS ON NOTES TO GOTHAM BANK……………………………………………………... MIDLAND UTILITIES - MIDLAND EXTENDS SERVICES INTO MICHIGAN AND WISCONSIN ………………………………………………….……. KANSAS PACIFIC - K&P WILL PAY NO DIVIDENDS THIS YEAR BECAUSE OF EXPANSION INTO THE SOUTHWEST……………………………… TEL-TONE - DIAL TELEPHONES WILL BE INSTALLED IN PARTS OF NEW YORK CITY……………………………………………………………….…….. $ 8 16 18 5 9 15 13 5

6 OUTCOMES 1922 NEW STOCK PRICE PER SHARE
KROGER - MERGER WITH LARGE EASTERN CHAIN OF STORES…….………….. RADIO CORPORATION - 15 PATENTS ARE PURCHASED FROM EDISON’S COMPANY………………………………….…….. MAMMOTH OIL - LARGEST OIL FIELD IN AMERICA MAY BE LOCATED UNDER MAMMOTH OIL FIELD IN TEA POT DOME, WY.……….. GOTHAM BANK - STOCK PRICE REMAINS THE SAME….……………………………. DURANT MOTORS - AUTOMOBILE SALES ARE DEPRESSED BECAUSE OF COMPETITION FROM FORD MOTOR COMPANY…………. MIDLAND UTILITIES - INSULL’S FINANCIAL MANIPULATION ALLOWS MIDLAND TO TAKE CONTROL OF COMMONWEALTH EDISON…... KANSAS PACIFIC - PROFITS RISE AS AGRICULTURAL SHIPMENTS FROM THE SOUTHWEST BEGIN…………………..……………………… TEL-TONE - NEW YORK STOCK EXCHANGE ANNOUNCES THAT TEL-TONE HAS SHOWN THE GREATEST INCREASE OF ANY STOCK LISTED ON THE EXCHANGE……... $20 11 25 6 9 23 18 20 6

7 PRESIDENT HARDING DIES 1923
SPECIAL NEWS BULLETIN: PRESIDENT HARDING IS SUFFERING FROM A CORONARY SEIZURE AND MAY HAVE PNEUMONIA. HE IS REPORTED TO BE DYING. THE STOCK MARKET WILL CLOSE IN BRIEFLY FOR NEW POSTINGS. PRESIDENT HARDING DIES 1923 NEW STOCK PRICE PER SHARE KROGER…..………………………….……………………………. …………………... $11 RADIO CORPORATION….……………………………………………………………...11 MAMMOTH …...……………………….……………………………. …………………...14 NATIONAL GOTHAM BANK………………………….…………………………………6 DURANT MOTORS………...………………………………………………………………9 MIDLAND POWER……..………………………………………………………………...14 KANSAS AND PACIFIC………..………………………………………………………….6 TEL-TONE…………..……………………………………………………………………..17 7

8 OUTCOMES 1924 NEW STOCK PRICE PER SHARE
KROGER - CORN BLIGHT ON KROGER FARMS CAUSES 90% LOSS OF CROP……………………. RADIO CORPORATION - SPECULATION ON NEW PATENT CAUSE RISE IN STOCK PRICES………………………………………….…..……………... MAMMOTH OIL - JAPANESE OFFER TO BUY THE TOTAL PRODUCTION OF ELK HILLS…………………………………………………………………………….. GOTHAM BANK - FRENCH GOVERNMENT ANNOUNCES THAT THEY WILL BEGIN TO PAY THEIR WORLD WAR I DEBTS TO U.S. BANKS……………….. DURANT MOTORS - THE DU PONT FAMILY BEGINS TO BUY LARGE BLOCKS OF DURANT MOTORS STOCK……………………………….………………………………... MIDLAND UTILITIES - INSULL FEARS CYRUS EATON OF CLEVELAND MAY BE TRYING TO TAKE OVER MIDLAND BY PURCHASING LARGE QUANTITIES OF STOCK…….…………………………………………………………………... KANSAS PACIFIC - SPECULATION ON INCREASED PROFITS FROM HOLDING IN MEXICO CAUSED STOCK PRICES TO RISE…………………………………………………. TEL-TONE -ANNOUNCES COMPLETION OF SUCCESSFUL MERGER. SPECULATION ON THE MARKET CONTINUES…………………………………………………………….. $10 21 22 ..20 5 26 19 28 8

9 OUTCOMES 1926 NEW STOCK PRICE PER SHARE
KROGER - SPECULATION THAT PURITY MARKETS ARE BUYING KROGER FOR AN ATTEMPTED TAKE OVER…………………………………………. RADIO CORPORATION - RUMORED MERGER WITH THE EDISON COMPANY CAUSE STOCK TO RISE……………………………….…...…... MAMMOTH OIL - CONGRESSIONAL COMMITTEE BEGINS AN INVESTIGATION OF THE MAMMOTH OIL LEASES POSIIBLE FRAUD………………. GOTHAM BANK - BANK STOCK REMAINS UNCHANGED…………………………… DURANT MOTORS - LOUIS CHEVROLET IS HIRED TO DESIGN AN INEXPENSIVE AUTOMOBILE……………………………………………………….. MIDLAND UTILITIES - CYRUS EATON BEGINS DUMPING LARGE BLOCKS OF MIDLAND STOCK ON A DEPRESSED MARKET………….. KANSAS PACIFIC - DROUGHT IN THE SOUTHWEST AND DEPRESSED FARM PRICES CAUSE PROFITS OF K&P TO FALL………………………... TEL-TONE - DROP OF TWO POINTS CAUSED J.P. MORGAN SELLING 200,000 SHARES. BROKERS SEE ONLY TEMPORY SETBACK…………………….. $30 25 19 16 23 18 14 9

10 OUTCOMES FEBRUARY1928 NEW STOCK PRICE PER SHARE $25 29 26 23 19 27
KROGER - FOOD PRICES ARE DEPRESSED BECAUSE OF AGRICULTURE SURPLUSES………………………………………………………………..………………... RADIO CORPORATION - MERGER WITH THE EDISON COMPANY FALL THROUGH WHEN RADIO CORPORATION PAYS NO DIVIDENDS…………………... MAMMOTH OIL - HARRY SINCLAIR IS CALLED BEFORE A CONGRESSIONAL COMMITTEE. SECRETARY OF THE INTERIOR FALL IS INDICTED FOR FRAUDULENT OIL LEASES……………………………………………………………….. GOTHAM BANK - ANNOUNCES PROFITS HAVE INCREASED BY 5% OVER LAST QUARTER……………………………………………………………………………………. DURANT MOTORS - A MERGER WITH FISHER BODY HAS BEEN ANNOUNCED. THE NEW CORPORATION WILL BE CALLED GENERAL MOTORS…………………. MIDLAND UTILITIES - REPORTS IN THE CHICAGO TRIBUNE DISCLOSE INSULL’S COMPANY IS A “HOUSE OF CARDS” READY TO CRUMBLE……………. KANSAS PACIFIC - NEW OIL FIELDS IN OKLAHOMA CAUSE A NEW BOOM ALONG THE KANSAS PACIFIC TRACK…………………………………………………. TEL-TONE - FAILS TO RISE AS PREDICTED. BROKERS ARE UNABLE TO EXPLAIN THE DOWNWARD TREND…………………………………………………….. 10

11 OUTCOMES JUNE1928 NEW STOCK PRICE PER SHARE
KROGER - FOOD PRICES REMAIN STABLE DESPITES FARMERS HIGH SURPLUSES. .………………………………………………………………..………………... RADIO CORPORATION – RADIO SALES AND RADIO STATIONS ARE AT AN ALL TIME HIGH REVENUE PROJECTED TO RISE……………………………………………... MAMMOTH OIL – TEAPOT DOME SCANDAL PASSES MORE CARS AND GAS STATIONS PROJECT ON THE HORIZON………………………………………………….. GOTHAM BANK – LOANS AT AN ALL TIME HIGH—INTEREST RATES ARE UP ALONG WITH PROFITS……………………………………………………………………. DURANT MOTORS – GENERAL MOTORS IS NOW AN ESTABLISHED CAR BRAND; SALES ARE RAPIDLY INCREASING………… MIDLAND UTILITIES – FEDERAL GOVERNMENT PLANS TO INVEST IN TO MORE RURAL ELECTRIFICATION…… ………. KANSAS PACIFIC – MORE PEOPLE ARE TRAVELING ACROSS THE NATION……. . TEL-TONE – PHONE SALES STAGNATE AS MOST AMERICANS ALREADY HAVE PHONE AND ADVANCES IN PHONE TECHNOLOGY IS SLOW……………………… . . $29 31 26 23 19 29 27 11

12 MONDAY, OCTOBER 28, 1929 THE MARKET SLIPPED TODAY AS THE GOVERNMENT ANNOUNCED THAT HOME CONSTRUCTION, AN INDICATOR OF PROSPERITY, WAS AT AN ALL TIME LOW. THE FEDERAL RESERVE BOARD ALSO ANNOUNCED THAT A CHANGE IN THE PRIME INTEREST RATE WOULD TAKE PLACE IN THE NEAR FUTURE; SPECULATION ON THE STOCK MARKET IS GETTING OUT OF HAND. IT IS RUMORED THAT THE HOUSE OF MORGAN INTENDS TO SELL 12 MILLION SHARES OF COMMON STOCK AT A LOSS. BUYERS OF STOCK ARE BEING NOTIFIED THAT THEY MUST PUT UP MORE MONEY TO COVER TODAY’S LOSSES. 12

13 TUESDAY, OCTOBER 29, 1929 PANIC HITS WALL STREET. 12 MILLION SHARES ARE TRADE IN ONE DAY ON THE NEW YORK EXCHANGE MILLION DOLLARS IS LOST BY STOCKHOLDERS IN ONE DAY AS THE MARKET TAKES THE GREATEST DIVE IN HISTORY. NEW STOCK PRICE PER SHARE KROGER……………………………………………………… RADIO CORPORATION…………………………………….. MAMMOTH OIL……………………………………………... GOTHAM BANK…………………………………………….. DURANT MOTORS………………………………………….. MIDLAND POWER………………………………………….. KANSAS AND PACIFIC…………………………………….. TEL - TONE………………………………………………….. $ 4 12 2 6 11 3 5 13

14 Writing Assignment Showing me what you learned…..
Imagine you lost your life savings because of the 1929 stock market crash. You are to write a letter to your children explaining how you lost all your money in the stock market. Please write neatly on lined paper. Your goal is to explain how the stock market works and how the risk ended in your losses. 14

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