Mr. Pruett’s Stock Market Simulation

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Presentation transcript:

Mr. Pruett’s Stock Market Simulation 1926-1929 Or it’s more famous name…“Get rich or die trying…”

What is Stock? Buying stock is simply investing money to buy a portion of a business to make a profit. Stock ownership means you are a part owner of that company. If the business does good the value of your stock increases. If the business does bad the value decreases.

January 1, 1926 Name of Stock General Motors US Steel Coca-Cola JP Morgan Bank General Electric Johnson’s Gold Edison’s Electronics Price per share $10 $5 $15

May 8,1926 Name of Stock General Motors US Steel Coca-Cola JP Morgan Bank General Electric Johnson’s Gold Edison’s Electronics Price per share $15 $10.50 $11.50 $21.00 $20

February 4,1927 Name of Stock General Motors US Steel Coca-Cola JP Morgan Bank General Electric Johnson’s Gold Edison’s Electronics Price per share $25.75 $20 $25.25 $32 $22.00 $25

June 2, 1927 Name of Stock General Motors US Steel Coca-Cola JP Morgan Bank General Electric Johnson’s Gold Edison’s Electronics Price per share $20 $17.50 $20.75 $35.25 $25 $20.50 $38.25

April 12, 1928 Name of Stock General Motors US Steel Coca-Cola JP Morgan Bank General Electric Johnson’s Gold Edison’s Electronics Price per share $32.00 $26.50 $25 $40.75 $30 $35

October 29, 1929 Name of Stock General Motors US Steel Coca-Cola JP Morgan Bank General Electric Company Johnson’s Gold Edison’s Electronics Price per share $2.75 $1.50 $1 BUST $.50 $18 $.25

Questions Percentage-wise, how much did you lose on 10/29/1929 compared to your original investment date? Why was “credit” your biggest enemy now? Thinking about the answer in #2, why did so many people go bankrupt?