Chapter 16: Getting Rich Quickly
What does on margin mean?
Borrowing money to buy more stock
What happens when the prosperity balloon pops?
Getting rich ends
What happened when professors, businesses, leaders, and politicians all said the boom would never end?
People listened, they spent their life savings, & they borrowed more money to buy stocks.
What happened in October 1929?
Stock market crashed-too many stocks-not enough buyers
What happened to stock prices?
They dropped
What did people start to do?
They panic & lose everything. Banks close, people lose homes & cars, people commit suicide & depression begins
Why were businesses going public to get rich?
They were looking for investors
What are shares?
When a business sells pieces of it to investors.
What is a dividend?
When you earn money if a business does well (make a profit)
What was going into stocks for people to get rich?
money
