The Stock Market Crash of 1929

Share of Stock

Also known as a Share or a Stock

A holder of _______________ (a shareholder) has

a claim to a part of the corporation's assets and

earnings. In other words, a shareholder is an

_______________ of a company. Ownership is

determined by the number of _______________

a person owns relative to the total number of shares available

Stock Broker

A stockbroker is person who _______________ and _______________ stocks through a stock exchange

in return for a fee or commission.

Stock Market

Also known as a Stock ______________ . A place where stocks are _______________ and

_______________

Speculation

Buying and selling stock on the Stock Market with the goal of making a _______________

1920s Booming Economy

Wages up _______________ after WWI. Stock Market was soaring

Many people investing – get _______________ _______________ schemes

1920s _______________ – get into the market

America has emerged as a world economic, industrial, and military _______________

Economic Danger Signs

200 businesses control 50% of the economy. Why is this dangerous?

Too much industry overproduction - surplus goods not being _______________

Too many products not, enough consumers buying

_______________ of population has no savings

Banks are _______________

Market value based on borrowed _______________ and over _______________ instead of

_______________ value

Increase in personal _______________ – (Credit debt and installment plan debt)

Buying Stocks on _______________ – borrowed money from Stock Broker to purchase Stocks

The

Warning Sign

Farm prices drastically _______________ after WWI

Farmers paid by government to make food for allies, creates a huge _______________

Farmers _______________ to repay loans after government pulls WWI agricultural contracts

_______________ banks close out West

STOCK MARKET CRASH OF 1929

Black Thursday

Black Thursday _______________ _______________ . Stocks fall drastically. Brokers _______________

GE falls from $400 a share to _______________ a share

Brokers make margin calls – no one can pay

Black Tuesday

October _______________ , 1929. Stocks _______________ again. Value of market falls. People sell

what’s left to get some _______________

By the end of Oct. – over _______________ billion has been lost! Thousands lose _______________

Immediate Effects of the Crash

Many lost _______________ _______________ in the market crash

Banks and Brokers call in _______________ – American people have no money

Hundreds of banks _______________

No money to pay back loans = empty savings accounts

Banks not prepared for people to _______________ money at the same time

_______________ savings accounts vanish