2. Brainstorm and write down all the pros and cons of government regulation that you can think of

4. Warm-up: write answers OR discuss with your partner
What is the English translation of laissez faire?
Define laissez faire
Give one good thing and one bad thing that happened from laissez faire in the 1920s

5. Today’s episode: The Stock Market LT 2: Causes of the GD
Great Depression
Today’s episode:
The Stock Market
LT 2:
Causes of the GD

6. What do you know about stocks?

8. Stock Market Basics Stock – unit of ownership in a company
Stock market – a place for trading stocks
Goal is to sell stock for higher value than you paid for it

9. DEMAND Stock market basics What makes stock value go up and down?
Stock value goes UP if demand for company’s stock goes up
Stock value goes DOWN if demand goes down

10. What is determining whether people buy or sell the stock?
Not how well the company’s doing

11. What can you get with your money in the market?
Loss
Money lost from a fall in stock value
Profit
Money gained from a rise in stock value

12. You must SELL your stock to actually get a profit or loss, otherwise your money’s still in the market
For example…

13. Explain

14. Two types of markets…

15. Two types of markets
BULL market – market where most stock values are going UP (remember: a bull’s horns go UP)

16. Two types of markets
BEAR market – market where most stock values are going DOWN

17. Explain

18. An Intro to the Market Stock Market Rap
Intro to stock market crash readings, basic:

19. Pie Building.

20. Warm-Up Write a sentence using the following words: Stock Profit Loss
Bear OR bull market

21. Risky stock market practices
Margin buying
Buying stocks with loans
Risky b/c loss can lead to debt
Why might this be risky?

22. Margin call – if stock value drops below a predetermined minimum requirement, you get a call to put in more $$$ or else you must sell for a loss
Movie released 2011
Wiki: Margin buying is buying securities with cash borrowed from a broker, using other securities as collateral. This has the effect of magnifying any profit or loss made on the securities. The securities serve as collateral for the loan. The net value, i.e. the difference between the value of the securities and the loan, is initially equal to the amount of one's own cash used. This difference has to stay above a minimum margin requirement, the purpose of which is to protect the broker against a fall in the value of the securities to the point that the investor can no longer cover the loan.

23. Risky stock market practices
Speculation
Buying and selling stocks in a short period of time to make a quick profit
Risky b/c involves guessing about stocks’ immediate future
What happened in the past may have no impact on what happens in the future; you don’t know what will happen to the kangaroo, anything could affect her

24. Examples of different stock markets
Dow Jones, New York Stock Exchange (NYSE), S&P 500

25. What does the market look like?

26. Closure
Get it, sort of, don’t
Around the room

27. Stocks plummet after dissing Jersey Shore
How might the stocks have plummeted? (2 ways)

28. CHALLENGE: In no more than three sentences (no run-ons), explain what we’ve learned about the stock market so far. You may choose to use the images below…
Pie Building.

29. Closure
Share with the person closest to you two things you learned today and one question you have about the stock market

30. Let’s make some moolah

31. THE GREAT DEPRESSION Today’s episode:
The Party’s Over – The Crash of ’29
LT 2:
Causes of the GD

32. Laissez faire – hands off
Whose hands?
Off what?

33. Warm-up: write the blanks
1. _________ – unit of ownership in a company 2. _________________ – a place for trading stocks 3. Goal is to sell stock for ________ than you paid for it 4. The ___________ for a stock makes its value go up and down 5. __________ – money gained from a _________ in stock value 6. __________ – money lost from a ________ in stock value 7. ______ market – market where most stock values are going up 8. ______ market – market where most stock values are going down 9. Margin buying – buying stocks with ________________________; risky 10. _____________ – buying and selling stocks to make a quick profit; high risk but chance of high reward

34. Boot up your Netbook

35. Warm-up: explain whether the statement below is true or false
People should buy in a bear market.

36. Warm-up
WRITE a sentence using 3 words on the word wall relating to laissez faire

37. Warm-up: Discuss with the person closest to you
Our current economy is not very good. How do we know we are not in a recession?
Use the root word of recession to explain what it is.
What are the three parts that make up an economy?

38. THE GREAT DEPRESSION Today’s episode:
The Party’s Over – The Crash of ’29
LT 2:
Causes of the GD

39. Brain stretch
STOCK MARKET – WITHOUT your notes, do your best to define the following terms in your scratch paper section:
Stock d) margin buying
Profit e) speculation
Bear market
LAISSEZ FAIRE – True/False. Correct the false.
Laissez faire leads to economic growth through most of the 1920s.
Under laissez faire, the gov’t spends more $ to solve economic problems.
Secretary of the Treasury Andrew Mellon raises taxes to put more money in the private sector.
An argument against too much tax is that it will keep people from working hard.

40. Why might this picture make sense?

41. What’s different?

42. he Dow Jones Industrial Average recovered, closing with it down only 6
he Dow Jones Industrial Average recovered, closing with it down only 6.38 points for the day; however, unlike 1907, the respite was only temporary.
The trading floor of the New York Stock Exchange in 1930, just six months after the crash of 1929
Over the weekend, the events were covered by the newspapers across the United States. On Monday, October 28, "Black Monday",[9] more investors decided to get out of the market, and the slide continued with a record loss in the Dow for the day of 38 points, or 13%. The next day, "Black Tuesday", October 29, 1929, about 16 million shares were traded, and the Dow lost an additional 30 points, or 12%.
It eventually falls 89% by 1932

43. The Crash of 1929
PBS
YouTube

44. The Dow Jones market loses 50% in the crash

48. Closure
Answer the “After the video” question on your handout

49. How a recession occurs Good economy People overspend, go into debt
People buy less
Businesses overproduce
Businesses lose money
Cut production, unemployment rises
People invest less in stocks
How a recession occurs

51. Risks and Rewards

52. Stock Market Vocab Review
1. _______ – unit of ownership in a company
2. ______________ – a place for trading stocks
3. Goal is to sell stock for ______ than you paid for it
4. The _______ for a stock makes its value go up and down
5. ________ – money gained from a rise in stock value
6. Loss – money lost from a ______ in stock value
7. ______ market – market where most stock values are going up
8. ______ market – market where most stock values are going down
9. Margin buying – buying stocks with ____________________; risky
10. _____________ – buying and selling stocks to make a quick profit; high risk but chance of high reward
Examples of different stock markets: Dow Jones, New York Stock Exchange (NYSE), S&P 500