1920s Economy  Everyone has disposable income: Suburbs, House, cars, radio, Entertainment, etc  The stock market was a way to make money with extra.

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Presentation transcript:

1920s Economy  Everyone has disposable income: Suburbs, House, cars, radio, Entertainment, etc  The stock market was a way to make money with extra cash  The bull market was not a gamble

Bull Market

Bear Market  1920s, few understood the business cycle  Today, we do not panic when prices begin to drop

1929  Business sales continued  Stock continued to rise  Americans continued to buy stock

Factors to the crash 1) Business prices began to fall, stock prices began to fall 2) Investors lose confidence and sell stock 3) Price Plunge (Black Thursday, Oct. 24 th ) 4) More panicked selling 5) Stock Market Crash (Black Tuesday, October 29, 1929)

 What do you do now if you bought thousands on margin buying?