Role-Playing the 1920s.

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Presentation transcript:

Role-Playing the 1920s

What is a stock exchange? Represents a share in ownership of a company. 10 shares make up one stock today Profits increase when a company is doing well, and decrease when a company is failing. What is a stock exchange? A public market where stocks are sold and bought between brokers (buyers) and traders. The most famous stock exchange is the New York Stock Exchange (NYSE) on Wall Street in New York City.

May the smartest and wisest investors win! Your goal today is to make as much money as possible and live out the 1920s dream of profit and riches. Your team will begin with $1000 to invest and buy stocks. Work together with your team to make decisions. Each stock costs $100. You may invest everything in one company, or choose to invest in many different ones. May the smartest and wisest investors win!

To Buy/Sell A stockbroker is someone who buys and sells stocks in stock exchanges. When the stock exchange is open, you will have five minutes to buy or sell stock from the stock brokers. Each stock certificate is 10 shares, and will START at $100. Beware: as times change, the market WILL fluctuate and prices will change

1920s Companies to invest in Chino Copper Company Radio Corporation Mammoth Oil General Motors Union Pacific Railroad Tel-Tone

1920s Companies Tel-Tone This telephone company is just beginning. This is their first public offering of stock. They presently plan to manufacture a dial-telephone. This process reportedly will revolutionize the use of the telephone. Their management is young and inexperienced.

1920 1922 1923 1927 1928 1929 Chino Copper $100 Radio Corporation Stock Opening Price 1920 1922 1923 1927 1928 1929 Chino Copper $100 Radio Corporation Mammoth Oil General Motors Union Pacific Tel-Tone

Stock Market Opens You have five minutes to buy or sell. http://www.youtube.com/watch?v=qr6gOTEptWo

Stock Exchange Closes http://www.youtube.com/watch?v=qr6gOTEptWo

1920 Outcome New Market Share Chino: purchases new food chain $120 Radio Corporation: new antenna model $130 Mammoth Oil: 9 new wells drilled $140 Durant Motors: defaults on bank payment $70 Union Pacific: Expanded to Southwest $90 Tel-Tone: Dial telephones installed in NYC $150

Stock Market Opens You have five minutes to buy or sell. http://www.youtube.com/watch?v=qr6gOTEptWo

Stock Exchange Closes http://www.youtube.com/watch?v=qr6gOTEptWo

1922 Outcome New Market Share Chino: merges with Eastern stores $150 Radio Corporation: purchases 15 patents $140 Mammoth Oil: largest oil field in US discovered $190 General Motors: competing with Ford $50 Union Pacific: Agricultural shipments to Southwest begins $100 Tel-Tone: Greatest increase of any stock listed on the exchange $220

Special News Bulletin President Harding is suffering from a seizure and is reported to be dying. You have two minutes to buy or sell.

Special News Bulletin August 2, 1923 President Harding dies. Calvin Coolidge sworn is as President. Stocks will close immediately

Stock Exchange Closes http://www.youtube.com/watch?v=qr6gOTEptWo

1923: Emergency Closing Outcome New Market Share Chino $130 Radio Corporation Mammoth Oil $160 Durant Motors $40 Kansas Pacific $90 Tel-Tone $190

Stock Market Opens You have five minutes to buy or sell. http://www.youtube.com/watch?v=qr6gOTEptWo

Stock Exchange Closes http://www.youtube.com/watch?v=qr6gOTEptWo

1927 Outcome New Market Share Chino: speculation that may be taken $140 Radio Corporation: rumored merger with Edison company causes stocks to rise $170 Mammoth Oil: investigated by Congress for possible fraud $130 Durant Motors: Louis Chevrolet is hired to design a cheap automobile $100 Kansas Pacific: Drought in Southwest Tel-Tone: J.P. Morgan becomes shareholder $220

Stock Market Opens You have five minutes to buy or sell. http://www.youtube.com/watch?v=qr6gOTEptWo

Stock Exchange Closes http://www.youtube.com/watch?v=qr6gOTEptWo

1928 Outcome New Market Share Chino: Agricultural surpluses $130 Radio Corporation: merger fails $140 Mammoth Oil:CEO charged with fraud $70 General Motors: Merger with Durant makes company significantly larger Union Pacific: New oil fields in Oklahoma $120 Tel-Tone: Fails to meet expectations. No explanation. $180

Special News Bulletin WEDNESDAY, OCTOBER 23, 1929: Home construction, an indicator of prosperity, is at an all time low. It is rumored that the House of Morgan intends to sell 12 million shares of common stock at a loss, before interest rates change. The Gotham Bank announced that margin buyers of stock are being notified that they must put up more money to cover today’s losses.

Stock Market Opens You have five minutes to buy or sell. http://www.youtube.com/watch?v=qr6gOTEptWo

Stock Exchange Closes http://www.youtube.com/watch?v=qr6gOTEptWo

Special News Bulletin Thursday, October 24, 1929

Black Thursday Outcome New Market Share Chino $30 Radio Corporation $20 Mammoth Oil $10 Durant Motors $120 Kansas Pacific $80 Tel-Tone $60