Ángela Ruiz Juan Serna

Organized and regulated financial market where securities (bonds, notes, shares) are bought and sold at prices governed by forces of demand and supply. Stock exchanges basically serve as: Primary markets where corporations, governments, municipalities, and other incorporated bodies can raise capital by channelling savings of the investors into productive ventures. Secondary markets where investors can sell their securities to other investors for cash, thus reducing the risk of investment and maintaining liquidity in the system.

New York Stock Exchange: The largest stock exchange in the world by both market capitalization and trade value. Headquartered in New York City Market cap: $13.4 trillion Nasdaq OMX: The exchange is owned by NASDAQ OMX Group which also owns and operates 24 markets, 3 clearinghouses and 5 central securities depositories supporting equities. Headquartered in New York City Market cap: $3.9 trillion

Tokyo Stock Exchange: The London Stock Exchange and the Tokyo Stock Exchange are developing jointly traded products and share technology. Headquartered in Tokyo Market cap: $3.8 trillion London Stock Exchange: The oldest and fourth-largest stock exchange in the world. The Exchange was founded in 1801 and its current premises are situated in Paternoster Square close to St Paul’s Cathedral. It is the most international of all the world’s stock exchanges, with around 3,000 companies from over 70 countries admitted to trading on its markets. Market cap: $3.6 trillion

The Origin -Stock markets were started when countries began trading with each other. - While many pioneer merchants wanted to start huge businesses, this required substantial amounts of capital that no single merchant could raise alone. -As a result, groups of investors pooled their savings and became business partners and co- owners with individual shares in their businesses to form joint-stock companies -Originated by the Dutch, joint-stock companies became a viable business model for many businesses.

The Wall Street Crash of 1929 ● Also known as Black Tuesday, the Great Crash or the Stock Market Crash of 1929 ● It was the most devastating stock market crash in the history of the United States ● The crash signaled the beginning of the 10-year Great Depression that affected all Western industrialized countries

Inmediate effects ● investors went into panic and rushed to sell their shares ● On 24 October, now referred to as Black Thursday, 12.8 million shares were sold. ● Thousands of people saw their fortune, or any money they had in the bank, disappear ● On 29 October 1929, 16 million shares were sold at very low prices. The Stock Market New York in had collapsed ● Investors lost their money in the Crash and could not pay their debts. Many banks closed, ordinary people lost their savings and people lost all hope for the future. People could no longer buy consumer goods like cars and clothes. ● This was the start of The Great Depression of the 1930s.

The Great Depression ● It was a severe worldwide economic depression that took place during the 1930s ● It was the longest, deepest, and most widespread depression of the 20th century. ● for more than a decade neither the free market nor the federal government was able to restore prosperity.

The impact: 1) 12 million people out of work 2) 12,000 people being made unemployed every day 3) 20,000 companies had gone bankrupt 4) 1616 banks had gone bankrupt 5) 1 farmer in 20 evicted 6) 23,000 people committed suicide in one year – the highest ever

Causes of the Great Depression ● insufficient purchasing power among the middle class and the working class to sustain high levels of production ● falling crop and commodity prices prior to the Depression ● the stock market's dependence on borrowed money ● wrongheaded government policies

A stock market crash is a sudden dramatic decline of stock prices. Crashes are driven by panic as much as by underlying economic factors. They often follow speculative stock market bubbles. The Guardian

It’s a way for the enterprises to make money. The stock exchange of any country has repercussions all over the world. Even you can participate in the stock exchange buying or selling securities. It’s country has its own stock market. The Stock Market controls billions of dollars, euros, pounds, etc.

Wall Street: Originally it was only the street where the New York stock market was located. Currently it’s a colloquial expression used to describe the entire stock market. October: Two of the worst stock-market crashes in which stock prices dropped precipitously occurred in October the year of the Great Depression caused when the stocks declined 25% in two days the year when the stock lost one-quarter of its value in one day.

Stock Prices: Changes in stock prices were expressed as fractions until the year The U.S. trailed other major stock markets, including the London Stock Exchange and the Paris Bourse, in its decision to convert stock prices from fractions to decimals in order to make it easier for the average investor to understand stock values. Best Days: The stock market rose to some of its best levels in trading sessions preceding stock market collapses. In 2000, just before the Nasdaq Composite started to lose nearly 50 percent its value, the Dow Jones Industrial Average set a new record by gaining almost 500 points in a day. In 2008, just before the U.S. economic recession began, the Dow Jones Industrial Average added more than 900 points, which represented the highest increase in the index in history.

Bear and Bull markets: An active market is a bull market. During a bull market, stock market prices rise; taken as a group, stock shares increase in value. A bear market is the opposite situation, with the market going into decline and values falling at least 20 percent. The stock market has suffered several bear markets. Fortunately, bull follows bear, the market rebounds and investors make money again.

Economically, the 1920s boasted great financial gain, at least for those of the upper class. Between 1922 and 1929, dividends from stock rose by 108 percent, corporate profits increased by 76 percent, and personal wages grew by 33 percent. Largely because of improvements in technology, productivity increased while overall production costs decreased, and the economy grew. Fitzgerald predict without knowing the crash, he suggest that society was living in excess and without curbing its appetite somewhat, ruin was just around the corner.