Stock Exchange! In the 1920s, people began to have more and more access to credit. Many people began...
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Transcript of Stock Exchange! In the 1920s, people began to have more and more access to credit. Many people began...
Stock Exchange!
In the 1920’s, people began to have more and more access to credit.
Many people began investing their money in stocks- shares of publically traded companies.
TODAY, WE ARE WILLING TO GIVE YOU TWO HUNDRED DOLLARS TO INVEST IN ONE OF THESE
COMPANIES:
The Stock Exchange!
The Companies
Rambo Financial Services•Has grown by $30 a share each of the
last 2 years.
Hope Secondary INC.•Has recently bought a huge chain of
grocery stores.
Fraser Canyon LTD.•Very aggressive concrete company.
Year One
RFS- $100 share worth $110
HSI- $100 share worth $120
FCL- $100 share worth $110
Year Two
RFS - $100 share worth $120
HSI- $100 share worth $120
FCL- $100 share worth $130
Buying on the margin
If you would like, you can pay only $10 a share to buy some more $100 shares. The Bank of Ms. Campbell will pay the rest right now, and you can pay them back later!
Year Three
RFC - $100 share worth $130
HSI- $100 share worth $120
FCL- $100 share worth $140
1929
RFC - $100 share worth $0 BANKRUPT
HSI- $100 share worth $1
FCL- $100 share worth $10
Stock Market Crash
Tuesday, October 29,1929 the New York Stock Exchange collapsed.
Everyone panicked as stock prices fell and tried to “sell, Sell, SELL!” driving prices lower.
The collapse of the stock exchange marked the end of the prosperity seen in the 1920’s and the start of the Depression of the 1930’s.
Helped kick off the “Dirty Thirties,” an era also known as “The Great Depression”