1. The Stock Market Crash

2. The Stock Market Crash
There were many causes of the Great Depression, most notably the Stock Market Crash of 1929.
Let’s examine the causes of the crash:

3. The Stock Market Crash
Rich investors would come together to secretly invest in a stock
They buy a large amount of one stock
Price increases
The average Joe sees this and invests also, driving the price up
Once the price hits its peak, the rich investors dump the stock and prices plummet

4. The Stock Market Crash Buying On Margin:
Let’s pretend you go to a casino and decide to play blackjack.
You bet $100

5. The Stock Market Crash
Your first card:

6. The Stock Market Crash This is great!!!
Because “blackjack (21)” pays 3-2 you turn to your buddy and ask to borrow another $100 in hopes of hitting a 10.

7. The Stock Market Crash
Now your bet is:
$200

8. The Stock Market Crash
Your second card:

9. The Stock Market Crash
AWESOME!!!
Your original bet: $200

10. The Stock Market Crash
You win (at 3-2 odds):
$500

11. The Stock Market Crash
Pay back your buddy $100 and put your original $100 in your pocket and your profit is $300 (300% return)

12. The Stock Market Crash
But what happens if you lose:

13. The Stock Market Crash
Your cards:
Dealer’s cards:

14. The Stock Market Crash
Now you lose your bet: $200
But…

15. The Stock Market Crash You also owe your friend $100
Your total loss = $300
Your original investment = $100