1. My Valentine’s Gift To You…
You may choose your seats this month.
Choose carefully because this will be your seat for the whole month.
*I reserve the right to change anyone’s seat at any time.*

2. Please take out your Chicago Race Riots worksheet (if you haven’t turned it in already) & the Scopes Trial questions

3. Stock Market

4. What is a stock? Represents a share in ownership of a company.
Profits increase when a company is doing well, and decrease when a company is failing.

5. 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.
A stockbroker is someone who buys and sells stocks in stock exchanges.

6. The Game
You will compete to make the best investments and gather the most wealth
At the end of the game, the team with the most $$$$ wins a prize

7. Your goal today is to make as much money as possible to live out the Roaring Twenties to the fullest.
Your team will begin with $1000 to invest and buy stocks.
Work together with your team to make decisions.
You may invest everything in one company, or in many.

8. Directions: Come up with a team name.
Review the stocks with your team.
-Decide which ones you think will go up in value.
-Decide how many you want to buy of each stock.

9. How to buy See the “Stock Purchase Record”
You will fill out one of these for EACH type of stock you want to buy
You’ll bring it up to me and I’ll give you the stock!
After 3 min, we’ll see which stocks went up and by how much

10. 1919 Stock Costs Stock Market Opens You have 3 minutes to buy or sell.
Company/Stock
Cost of each stock
Kroger
$100
Radio Corporation
Mammoth Oil
Durant Motors

11. Stock Exchange Closes

12. 1925 Calculate your wealth! -Add up the value of your stocks
Outcome
New Market Share
Kroger: 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
Calculate your wealth!
-Add up the value of your stocks
-Figure out what (if any) cash you have left
-Total it up!

13. 1925 Stock Costs Stock Market Opens
You have three minutes to buy or sell.
1925 Stock Costs
Company/Stock
Cost of each stock
Kroger
$120
Radio Corporation
$130
Mammoth Oil
$140
Durant Motors
$70

14. Stock Exchange Closes

15. 1929 Outcome New Market Share Kroger: merges with Eastern stores $150
Radio Corporation: purchases 15 patents
$140
Mammoth Oil: largest oil field in US discovered
$190
Durant Motors: competing with Ford
$50
Calculate your wealth!
-Add up the value of your stocks
-Figure out what (if any) cash you have left
-Total it up!

16. The Game Please take out your record sheet
Figure out how many of each stock you own
Send 1 person up to get your stocks

17. New Buying Option! Buying on the Margin
You only put 10% of the cost down
You pay the stockbroker 90% of the cost after the stock goes up

18. 1929 Stock Costs Stock Market Opens
You have three minutes to buy or sell.
1929 Stock Costs
Company/Stock
Cost of each stock
Kroger
$150
Radio Corporation
$140
Mammoth Oil
$190
Durant Motors
$50

19. Stock Exchange Closes

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

21. Morning News Bulletin
Thursday, October 24, 1929

22. Calculate your wealth(?)
Thursday, October 24, 1929
Outcome
New Market Share
Kroger
$30
Radio Corporation
$20
Mammoth Oil
$10
Durant Motors
$40
Calculate your wealth(?)
-Add up the value of your stocks
-Figure out what (if any) cash you have left
-Subtract your debts
-Total it up!

23. 1929 Stock Costs Stock Market Opens
You have three minutes to buy or sell.
1929 Stock Costs
Company/Stock
Cost of each stock
Kroger
$30
Radio Corporation
$20
Mammoth Oil
$10
Durant Motors
$40

24. Stock Exchange Closes

25. Calculate your wealth(?)
Black Tuesday: Oct. 29, 1929
Outcome
New Market Share
Kroger
$10
Radio Corporation $5
Mammoth Oil
Durant Motors
Calculate your wealth(?)
-Add up the value of your stocks
-Figure out what (if any) cash you have left
-Subtract your debts
-Total it up!

26. Final Qs
What was the purpose of this simulation? What happened to most people in this game?
What did you learn about the stock market in the 1920s?
How did buying on margin contribute to the stock market crash?