Stock Market- Getting Rich Quickly
The Crash of 1929
-Black Thursday, October 24, 1929 -people were in a panic trying to sell stock, but no one is buying -people lost their jobs, homes, money and owed more money from their "margin deals" -the banks crash too-they leant money to brokers and people buying stocks
Stock Market Basics
-company sells shares to raise money by "going public" -the shares are called stock and the stock holders, or investors, become part owner of the company -the stockholders get a percentage of the profits, a dividend, if the company does well -now more people want to buy shares, but because there was only a certain number of shares issues when the company went public, the price of the shares go up--the law of supply and demand -in the 1920s people could buy stock on margin- they borrowed most of the money to buy the stock -business os buying and selling stocks=the stock market - this business is done at the stock exchange in NYC on Wall Street
The Depression
-economic depression -notable for its duration and intensity that struck the world from 1929-1940 - Recovery was a long and difficult process -began with a crash of the stock market in 1929 ironically, WWII brought an end to the great depression -years later, economic historians say that good leadership and sensible regulations could have prevented this crash -(we don't learn, do we!!!)
Everyone takes credit
-politicians thought their good leadership caused the bull market -business leaders thought it was their acumen that caused the bull market -everyone thought the bull market would never end; even President Coolidge said the stock market was absolutely sound when he left office -people were putting all their savings into the market and people were buying on margin to get rich quick -by July 1929 people were buying stock in almost anything and made money
1920s "Bull Market"
-stock market usually reflect the business world -if things are going well, stocks go up; if business is poor, stocks go down -Bull Market= up market -Bear Market=a down market -the 1920s were a prosperous time -around 1924 stock market started to rise slowly -by 1927 the market began to rise like fury, stock doubling and tripling practically over night!
