Role-Playing the 1920s
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Transcript of Role-Playing the 1920s
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Role-Playing the 1920s
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• What is a stock?– Represents a share in ownership of a company.
• 10 shares make up one stock today
– Profits increase when a company is doing well, and decrease when a company is failing.
• What is a stock exchange?– A public market where stocks are sold and bought
between brokers (buyers) and traders.– The most famous stock exchange is the New York Stock
Exchange (NYSE) on Wall Street in New York City.
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• Your goal today is to make as much money as possible and live out the 1920s dream of profit and riches.
• Your team will begin with $1000 to invest and buy stocks.– Work together with your team to make decisions.– Each stock costs $100.– You may invest everything in one company, or
choose to invest in many different ones.
May the smartest and wisest investors win!
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To Buy/Sell
• A stockbroker is someone who buys and sells stocks in stock exchanges.
• When the stock exchange is open, you will have five minutes to buy or sell stock from the stock brokers.
• Each stock certificate is 10 shares, and will START at $100.
• Beware: as times change, the market WILL fluctuate and prices will change
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1920s Companies to invest in
• Chino Copper Company• Radio Corporation• Mammoth Oil• General Motors• Union Pacific Railroad• Tel-Tone
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1920s Companies
• Tel-Tone• This telephone company is just beginning. This
is their first public offering of stock. • They presently plan to manufacture a dial-
telephone. This process reportedly will revolutionize the use of the telephone.
• Their management is young and inexperienced.
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Stock Opening Price
1920 1922 1923 1927 1928 1929
Chino Copper $100
Radio Corporation
$100
Mammoth Oil
$100
General Motors
$100
Union Pacific $100
Tel-Tone $100
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Stock Market Opens
• You have five minutes to buy or sell.
• http://www.youtube.com/watch?v=qr6gOTEptWo
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Stock Exchange Closes
http://www.youtube.com/watch?v=qr6gOTEptWo
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1920
Outcome New Market Share
Chino: purchases new food chain $120
Radio Corporation: new antenna model $130
Mammoth Oil: 9 new wells drilled $140
Durant Motors: defaults on bank payment $70
Union Pacific: Expanded to Southwest $90
Tel-Tone: Dial telephones installed in NYC $150
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Stock Market Opens
• You have five minutes to buy or sell.
• http://www.youtube.com/watch?v=qr6gOTEptWo
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Stock Exchange Closes
http://www.youtube.com/watch?v=qr6gOTEptWo
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1922
Outcome New Market Share
Chino: merges with Eastern stores $150
Radio Corporation: purchases 15 patents $140
Mammoth Oil: largest oil field in US discovered
$190
General Motors: competing with Ford $50
Union Pacific: Agricultural shipments to Southwest begins
$100
Tel-Tone: Greatest increase of any stock listed on the exchange
$220
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Special News Bulletin
• President Harding is suffering from a seizure and is reported to be dying.
• You have two minutes to buy or sell.
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August 2, 1923
President Harding dies. Calvin Coolidge sworn is as President.Stocks will close immediately
Special News Bulletin
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Stock Exchange Closes
http://www.youtube.com/watch?v=qr6gOTEptWo
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1923: Emergency ClosingOutcome New Market Share
Chino $130
Radio Corporation $130
Mammoth Oil $160
Durant Motors $40
Kansas Pacific $90
Tel-Tone $190
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Stock Market Opens
• You have five minutes to buy or sell.
• http://www.youtube.com/watch?v=qr6gOTEptWo
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Stock Exchange Closes
http://www.youtube.com/watch?v=qr6gOTEptWo
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1927Outcome New Market Share
Chino: speculation that may be taken $140
Radio Corporation: rumored merger with Edison company causes stocks to rise
$170
Mammoth Oil: investigated by Congress for possible fraud
$130
Durant Motors: Louis Chevrolet is hired to design a cheap automobile
$100
Kansas Pacific: Drought in Southwest $100
Tel-Tone: J.P. Morgan becomes shareholder $220
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Stock Market Opens
• You have five minutes to buy or sell.
• http://www.youtube.com/watch?v=qr6gOTEptWo
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Stock Exchange Closes
http://www.youtube.com/watch?v=qr6gOTEptWo
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1928Outcome New Market Share
Chino: Agricultural surpluses $130
Radio Corporation: merger fails $140
Mammoth Oil:CEO charged with fraud $70
General Motors: Merger with Durant makes company significantly larger
$130
Union Pacific: New oil fields in Oklahoma $120
Tel-Tone: Fails to meet expectations. No explanation.
$180
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Special News BulletinWEDNESDAY, OCTOBER 23, 1929:Home construction, an indicator of prosperity, is at an all time low. It is rumored that the House of Morgan intends to sell 12 million shares of common stock at a loss, before interest rates change. The Gotham Bank announced that margin buyers of stock are being notified that they must put up more money to cover today’s losses.
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Stock Market Opens
• You have five minutes to buy or sell.
• http://www.youtube.com/watch?v=qr6gOTEptWo
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Stock Exchange Closes
http://www.youtube.com/watch?v=qr6gOTEptWo
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Special News Bulletin
• Thursday, October 24, 1929
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Black Thursday
Outcome New Market Share
Chino $30
Radio Corporation $20
Mammoth Oil $10
Durant Motors $120
Kansas Pacific $80
Tel-Tone $60