Agenda Bell Work MME 399-400 Notes over Stock Market Crash What is a Hooverville? How was life during the Great Depression? Notes over Stock Market Crash

Stock Market Crash Chapter 11 Section 1

Capital Tools needed to produce things of value out of raw materials Factory buildings Factory machinery Money Represented by shares of stocks sold by corporations Stocks gives ownership to those who own stocks Stocks are sold at stock markets like the New York Stock Exchange on Wall St.

Bull Market Stock prices continue to grow 1920s saw longest and largest period of growth of stock values in US history From 1920-1929, stock values quadrupled in value. Many investors felt the market was a”sure thing” Many investors borrowed heavily from the banks to invest in the market Buying on Margin

Bear Market Stock prices fall in October 1929 The Boom period has come to an end. The Bubble burst. Over-speculation caused stock prices to become inflated. The Market was “righting” itself. Immediately demand for consumer goods declines due to the financial losses within the market Everyone was afraid to buy new stocks because their stocks had dropped to nothing

Bear Market Banks could not collect debts made to stock investors because their holdings were worth nothing Depositors rushed to banks to withdraw savings. Banks did not have the money to return to depositors Banks failed by the hundreds. Savings were gone.