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The Stock Market it now open!!! You have 5 minutes to buy stock!!!

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Presentation on theme: "The Stock Market it now open!!! You have 5 minutes to buy stock!!!"— Presentation transcript:

1 The Stock Market it now open!!! You have 5 minutes to buy stock!!!
Announcement! The Stock Market it now open!!! You have 5 minutes to buy stock!!!

2 The Stock Market is now closed!!!
Announcement! The Stock Market is now closed!!!

3 Important Company Information
1925 Stock Important Company Information Price Per Share Kroger Corn blight on Kroger farms causes 90% loss of crop $12 Radio Corp. Speculation on new patent causes rise in stock prices $15 Mammoth Oil Japanese offer to buy the total production of Elk Hills $21 Gotham Bank French Government announces that they will begin to pay their World War I war debts to the U.S. banks Durant Motors The DuPont family begins to buy large blocks of the Durant Motor stocks $7 Midland Power Cyrus Eaton of Cleveland may be trying to take over Midland by purchasing large quantities of Stock $22 Kansas Pacific Speculation on increased profits from holdings in Mexico cause stock price to rise $11 Tele-Tone Announces completion of successful merger. Speculation on the market continues. $24

4 The Stock Market it now open!!! You have 5 minutes to buy stock!!!
Announcement! The Stock Market it now open!!! You have 5 minutes to buy stock!!!

5 The Stock Market is now closed!!!
Announcement! The Stock Market is now closed!!!

6 Important Company Information
1927 Stock Important Company Information Price Per Share Kroger Rumored merger with the Edison Company causes stock to rise $14 Radio Corp. Speculation on new patent causes rise in stock prices $15 Mammoth Oil Congressional committee begins an investigation of the Mammoth Oil leases. Possible Fraud. $13 Gotham Bank Bank stocks remain unchanged $12 Durant Motors Louis Chevrolet is hired to deign an inexpensive automobile $10 Midland Power Cyrus Eaton begins dumping large blocks of Midland stock on a depressed market $18 Kansas Pacific Drought in the Southwest depressed farm prices cause profits of K&P to fall. Tele-Tone Drop of two points caused by J.P. Morgan selling 200,000 shares Brokers see only temporary setback $22

7 The Stock Market it now open!!! You have 5 minutes to buy stock!!!
Announcement! The Stock Market it now open!!! You have 5 minutes to buy stock!!!

8 The Stock Market is now closed!!!
Announcement! The Stock Market is now closed!!!

9 Important Company Information
1928 Stock Important Company Information Price Per Share Kroger Food prices are depressed because of agricultural surpluses $13 Radio Corp. Merger with the Edison Company falls through when Radio Corp. pays no dividends $14 Mammoth Oil Harry Sinclair is called before Congressional committee Secretary of the Interior Fall is indicted for fraudulent oil leases $7 Gotham Bank Announces profits have increased by 5% over the last quarter $16 Durant Motors Durant Motors and Fisher Body have announced a merger. New Corporation will be called General Motors. Midland Power Reports in the Chicago Tribune disclose Insull’s Company is a “House of Cards” ready to crumble $18 Kansas Pacific New oil fields in Oklahoma cause a new boom along Kansas Pacific track.. $12 Tele-Tone Fails to rise as predicted. Brokers are unable to explain the downward trend. $22

10 The Stock Market it now open!!! You have 5 minutes to buy stock!!!
Announcement! The Stock Market it now open!!! You have 5 minutes to buy stock!!!

11 The Stock Market is now closed!!!
Announcement! The Stock Market is now closed!!!

12 1929 Special Announcement Wednesday, October 23, 1929
The Market slipped today as the government announced that home construction, an indicator of prosperity, was at an all time low. The Federal Reserve Board also announced that a change in the prime interest rate would take place in the near future; speculation on the stock market is getting out of hand. 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.

13 The Stock Market is now closed!!!
Announcement! The Stock Market is now closed!!!

14 Tuesday,October 29, 1929 (Black Tuesday)
Panic hits Wall Street. 12 million shares are traded in one day on the New York Exchange. $700 is lost by stock holders in one day as the market takes the greatest dive in history Stock Prices Per Share Kroger $8 Radio Corporation $4 Mammoth Oil $2 Gotham Bank $12 Durant Motors $12 Midland Power $3 Kansas Pacific $8 Tele-Tone $6

15 The End of the GAME! Calculate the total for all of your stock certificates at the current market value (less any outstanding debt). The student with the most money at the end of the simulation will be the WINNER!

16 Review Questions: Why do you think you were successful (made a profit) or not (lost money)? What will happen to the bank if thousands of people are unable to pay their loans back? What do you think would happen if the banks went out of business? What do you think would happen to the companies used in this simulation after the stock market crashed? What would happen to the people who worked for those companies? If you were living during the Great Depression and lost your job and all your money in the stock market and/or because of bank closures what could you do to survive?


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