1. The Stock Market Crash of 1929
“Dazzle No More”

2. Essential Question:
How does the stock market work, and why did it “crash” in 1929?

3. What is the stock market? (p.324)
The place where people can buy and sell stocks is called the stock exchange.
The stock market is the business of buying and selling stocks at the stock exchange.
People would invest (to spend money in hopes of getting more back) their money in the stock market in hopes of being paid dividends (money made in the stock market).

4. Bull or Bear? vs.
People that participate in the stock market are called either a bear or a bull depending on how they are involved with the stock market.
Bull- someone who thinks the stock market shares will go up
Bear- someone who tries to sell his shares because he thinks the prices will drop

5. The Big Bull Market
In 1928, the stock market prices were higher than ever before—and they continued to rise.
Over 1.5 million people were invested in the stock market.
This time was nicknamed “the Big Bull Market” because everything was going so well.
But the prices started going up too quickly, and stocks were being bought for more than they were worth.
People started to stop buying more stocks in fear that they would be overpaying, and not make much money off of them.

6. Black Thursday
On October 24, 1929, people got so worried about their stocks losing value, that they all tried to sell them right away.
With everyone selling, and no one buying, the stock market prices kept dropping and dropping.
Everyone went into a panic!!
They knew their life savings were going down the drain.
This day is known as Black Thursday.

7. CRASH!! Black Tuesday (p. 336)
On Tuesday, October 29, 1929, the stock market in New York City officially crashed (when stocks lose more than half their value).
Thousands of people became poor overnight. This day is known as Black Tuesday.
People had lost not only their hard-earned money, but also borrowed money.
How were they going to pay someone back if they were now too poor to even help themselves?
CRASH!!

8. This marked the beginning of the GREAT DEPRESSION!!!