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10 th American History Daily Lessons
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This Day in History and Current Events This Day in History 1993- President Bill Clinton signed into law the Brady bill, which requires a five-day waiting period for handgun purchases and background checks of prospective buyers. Current Event Student News –U.N. backs upgraded status for Palestinian Authority –American leadership focus of Obama-Romney lunch –Hillary Clinton unveils 'blueprint' to combat AIDS –CNN Heroes - Everyday People Changing the World
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While you were gone 10 th American HistoryMake-up Assignments Nov. 30 While you were gone 10 th American History- Make-up Assignments Mr. Cook Room 214 Student-______________ Date Absent Nov. 30 Date Due-______ Please attach your make-up work to this sheet when you hand it in! Homework: –Chapter 11 Section 1 Notes- Pages 320- 327 – due Dec. 4 –Chapter 11 Section 2 Notes- pages 328- 333 due Dec. 6 –Chapter 11 Section 3 Notes- pages 335- 339 due Dec. 10 –Chapter 11 Test- Dec. 12 In Class Work: Activities- 1.Finish Activities from yesterday 2.Transphase Game Examination: Date and Period you will take the exam-_______ Signature:____________
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Day #69 Homework due today – none In Class Work- Activities- 1) Transphase Game Period 1 Period 3 Period 4 Period 6 2) Finish Activities from Day 70 Unit III A Modern Nation Worksheet Looking Back And Black Days lecture Bulls, Bears And Pigs
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Situation 1 Mrs. Jones buys on margin 100 shares of Coca-Cola at $30 per share. The total market value of the stock Mrs. Jones buys is -$__________ $3,000 The amount of money that Mrs. Jones must pay for this purchase (her initial margin requirement) is- $__________________ $1,500 (50% of stock price.) The maximum amount of money that a brokerage firm could lend Mrs. Jones (her debt) is $1,500 Mrs. Jones’ equity is ------- $1,500
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Situation 2 The value of Mrs. Jones 100 shares of Coca- Cola rises to $40 per share. The market value of Coca-Cola in Mrs. Jones account is now $______________________ $4,000 The amount of money that Mrs. Jones owes her brokerage firm (her debt) is $____________ $1,500 The Mrs. Jones’ equity is $____________________________ $2,500
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Situation 3 The value of Mrs. Jones 100 shares of Coca- Cola falls to $20 per share. The market value of Coca-Cola in Mrs. Jones account is now $______________________ $2,000 The amount of money that Mrs. Jones owes her brokerage firm (her debt) is $____________ $1,500 The Mrs. Jones’ equity is $_______________________ $500
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Bulls, Bears and Pigs Bull Market- is a stock market with rising prices over an extended time. Buying on Margin can increase gains in a bull market.
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Bulls, Bears and Pigs Bear Market- is a stock market with falling prices over an extended time. Short selling (profiting from a fall in a share) can increase gains in a bear market.
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Bulls, Bears and Pigs Pigs- are greed animals. Stock buyers who try and make every last cent of gain on a investment may end up with losses.
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PresidentYear Minimum Wage Consumer Price Index BreadMilkCandy Bar GasolineNew CarHome FDR1938$.25$14$.08$.17$.05$.11$1,500$6,300 Truman1945$.40$18$.10$.22$.05$.34$2,000$8,031 Eisenhower1950$.75$24.10$.13$.29$.10$.45$2,700$10.752 Eisenhower1956$1.00$27.20$.15$.33$.10$.51$3,034$12,136 Kennedy1963$1.25$30.60$.17$.37$.15$.57$3,413$13,653 LBJ1967$1.40$33.40$.19$.40$.17$.62$3,725$14,902 Nixon1968$1.60$34.80$.19$.42$.17$.85$3,881$15,527 Ford1975$2.10$53.80$.30$.65$.27$.75$6,001$24,004 Carter1979$2.65$72.60$.40$.87$.36$.95$8,098$32,392 Reagan1981$3.35$90.90$.51$1.09$.46$.85$10,139$40,557 Bush1991$4.25$136.20$.76$1.63$.68$.99$15,192$60,769 Clinton1997$5.15$166.60$.90$1.92$.81$1.25$17,902$71,611 Present day$20,000@5 % $80,000 @ 8% Who Can Buy More?
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Reasons for the Stock Market Crash. Causes:Explanation: Buying on Margin Borrowing money from brokers to purchase more stock than you can afford. Money is loaned on call. Many people had an overconfidence from the 20's which influenced a search for easy money and made many people greedy. (This brought many people into a situation they did not understand.) Overpriced stocks Inflated stock prices because of the unreal preception of huge gains. Slowing economy High inflation, low buying, yet high spectulation. Rising umemployment The desire for consumer durable goods went down. Too much overproduction. Massive fraud and illegal activities There probably was little actual insider trading or illegal manipulation. Public Officials repeated statements Things are doing very well and will continue. Some said prices were too high and overvalued but that caused some people to be encouraged Unwillingness of financial analysts to recognize any theories. People in general did not want to hear anything that might suggest an end to the wealth of the stock market. Some statisticians predicted a crash but no one wanted to listen. Ignoring these theories may have resulted in the crash. Sticky Prices/Sticky Wages Prices wanting to go up but wages remaining low. People buy less and employers hire less, thus causing cut backs in production and employment. Hoarding money Putting it away for the rainy day took money out of circulation and the Fed did little to solved the problem Gold Standard Fluctuating Gold prices kept changing the value of money. As the situation worsened countries dropped their gold standards. Smoot-Hawley tariff act. Created an international tariff war which hurt everyone. Federal Reserve Board No real strong leadership. No one knew really what to do. Acted to late. Didn’t reduce money supply or increase it. Didn’t reduce or increase interest rate. Federal Reserve policies were causing disagreement and problems
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The Great Stock Market Crash- 1929 The Beginning of the End- Black Thursday, October 24, 1929. Black Thursday was the first sign of the end of a great bull market. What goes up, must come down. And come down it did. However, Black Thursday was not the nail in the coffin (that comes on Black Monday and Tuesday). In fact, Black Thursday involved a great comeback. Let’s get straight to the story… 12.9 million shares changed hands on Black Thursday (a new record – 4 million shares was considered a busy day back then). Most of the panic took place in the morning hours. The ticker tape machine fell behind by an hour and a half leaving investors madly scrambling to sell their investments without even knowing the current prices. Panic set in. People gathered outside the exchanges and brokerages, police were dispatched to insure peace. Rumors were flying. By 12:30 PM, the Chicago and Buffalo Exchanges closed down, eleven well-known speculators had already killed themselves and the NYSE closed the visitor’s gallery on the wild scenes below.
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The Great Stock Market Crash- 1929 The Beginning of the End- Black Thursday, October 24, 1929. The market moved up a bit after Lamont’s statement, but the real recovery came at 1:30 PM, when self-confident Richard Whitney, vice-president of the NYSE and floor broker of J.P. Morgan and Company, walked into the exchange floor. The crowd went silent. Everyone expected an announcement that the NYSE would be closed. Instead, Richard Whitney surprised everybody… Whitney asked for the latest bid on U.S. Steel. “195” someone shouted. Then he promptly announced that he was buying 10,000 shares of U.S. Steel at 205. He immediately received 200 shares and then left the rest of the order with the specialist. He continued to make similar orders for over a dozen more stocks. Fear evaporated as investors became worried that they would miss the new boom. The market would have closed much higher if stop loss orders from earlier that day hadn’t been triggered during the upward surge. Needless to say, the recovery on Black Thursday was impressive, but so was the massive sell off earlier in the morning that gave it its name. Friday and Saturday morning sessions held steady as everyone became optimistic with the market’s ability to recover. These feelings were squashed on Black Monday.
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Black Monday (October 28th, 1929) Following Black Thursday 1929, the stock market was much calmer - it was up a bit on Friday and down a little on Saturday. People were optimistic, knowing that the market could bounce back from Thursday and that the bankers had stepped in. This false sense of hope would end on Monday. Black Monday was a terrible day in the market. Unlike the Black Thursday, no "hero" stepped in to regain investor’s confidence. Volume levels were very high (around 9.25 million shares) as speculators began to realize that no one could save the market. Speculators could only hope that the damage wouldn’t be too bad. Black Monday was the 2nd worst day in U.S. stock market history. The worst day in history wouldn’t come for 58 more years (October 19th, 1987), which also happens to be a Monday and is also referred to as "Black Monday." Black Monday is usually considered a precursor to the worst day in stock market history – the nail in the coffin, Black Tuesday.
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Worst Day in Stock Market History - Black Tuesday - October 29th, 1929 Black Tuesday is notorious for being the worst day in the U.S. stock market, but in terms of percentage loss, the honor goes to Black Monday (1987 and 1929). Combine the worst features of Black Thursday with the worst features of Black Monday and you get Black Tuesday. On Thursday, Oct. 24, a record 12.9 million shares traded and the ticker tape fell behind one and a half hours. On Black Tuesday, a new record of 16.4 million shares were traded and the ticker tape fell behind by two and a half hours! On Monday, the stock market suffered a record one- day loss of around 13 percent. On Black Tuesday, the market suffered a loss of about 12 percent. Like the previous "Black Days," the top bankers held a meeting during the day about the market. By the end of November, investors had lost $100 billion in assets in what was later called "The Great Stock Market Crash." In just two months, September and October, the stock market had lost 40 percent of its value. Black Tuesday usually marks the point where the Roaring 20’s ended and the Great Depression started. The stock market would continue to fall until bottoming out in July of 1932 with the Dow at 41.22, down 89.2% (from 381.17 to 41.22. The stock market wouldn’t recover for another 22 years
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Stock Market Interactive – Parts 1, 2 and 3 Instructions for the IPad. 1.Stockmarket Interactive 1.Stockmarket Interactive – Parts 1, 2 and 3 American History Website Part 1,2 and 3Go to the American History Website: Unit III- Chapter 11 and find Part 1,2 and 3 RoverAlso Open the Rover App. Part 1- Copy the URL and paste into Rover.Click on Part 1- Copy the URL and paste into Rover. Part 2 and 3 RoverGo to Part 2 and 3 as you finish each part, paste the URL’s into Rover. 2.Worksheet: American History WebsiteGo to the American History Website: Unit III- Chapter 11; Stock Market Interactive worksheetOpen Stock Market Interactive worksheet You will be able to four finger swipe between the interactive game and this worksheet. Put your answers in your notebook.
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Stock Market Interactive Part 1 Part 2 Part 3
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Write your answers in your notebook Part 1- In this activity you will view some graphs of actual price movements of several different stocks over multi-year periods. For each graph, you will need to determine which one you would be willing to buy. Once you have made your prediction you will see what actually happened. Write your answers in your notebook 1) Did you buy Green or Blue? __________________ What happened?- _____________________________ ____________________________________________ 2) Did you buy or sell? __________________What happened?- _____________________________ ____________________________________________ 3) Did you buy Green or Blue? __________________What happened?- _____________________________ ____________________________________________ Hit Back to Lesson and Close the Window
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Write your answers in your notebook Part 2- Double click on part 1 to follow the hyperlink. In this activity you will start with $100 with a goal to end up with as much money as possible. See how well you can do in timing the market. 1920’s-World War II. Ask yourself- “Should I follow a simple buy and hold strategy, stay out of the market completely or try and time the market correctly for the big payoff?”. Click the Transphase button when you’re ready to start. Write your answers in your notebook 1.On the first page; Invest or Save? What will you do?_____________________________________ Welcome to the _______________. What happened? ___________________________________________ 2. Invest or Save? What will you do? ____________Economy ____________________. What happened? ___________________________________________ 3. Invest or Save? What will you do? ____________Stock Market _________________. What happened? ___________________________________________ 4. Invest or Save? What will you do? ____________Stock Market _________________. What happened? ___________________________________________ 5. Invest or Save? What will you do? ____________Stock Market _________________. What happened? ___________________________________________ 6. Invest or Save? What will you do? ____________Investor Fears _________________. What happened? ___________________________________________ 8. Invest or Save? What will you do? ____________Stock Market _________________. What happened? ___________________________________________ 9. Invest or Save? What will you do? ____________Stock Market _________________. What happened? ___________________________________________ 10. Invest or Save? What will you do? ___________Investors _____________________. What happened? ___________________________________________ How did you turn out? $Why? Hit Back to Lesson and Close the Window
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Write your answers in your notebook Part 3- Double click on part 1 to follow the hyperlink. In this activity you will start with $1000. Your goal is to end up with as much money as possible. See how well you can do in timing the market. Before you make your decisions, read the information presented regarding the current state of the economy, who the current president is and major happenings in the world. Analyze the statistics and try to use this information as well as your gut feeling to “time the market” accurately. After you have made your decision to invest or save, the time period that you are in will be revealed to you and your portfolio at the bottom of the screen will be adjusted accordingly. Ask yourself- “Should I follow a simple buy and hold strategy, stay out of the market completely or try and time the market correctly for the big payoff?” Click the Transphase button when you’re ready to start. Write your answers in your notebook 1. On the first page; Invest or Save? What will you do?_____________________________________ Economic ____________________. What happened? ___________________________________________ 2. Invest or Save? What will you do?____________Market ______________________. What happened? ___________________________________________ 3. Invest or Save? What will you do?____________Stock Market _________________. What happened? ___________________________________________ 4. Invest or Save? What will you do?____________Stock Market _________________. What happened? ___________________________________________ 5. Invest or Save? What will you do?____________Market ______________________. What happened? ___________________________________________ 6. Invest or Save? What will you do?________________________________________. What happened? ___________________________________________ 7. Invest or Save? What will you do?____________Market ______________________. What happened? ___________________________________________ 8. Invest or Save? What will you do?____________Market ______________________. What happened? ___________________________________________ 9. Invest or Save? What will you do?____________Stock Market _________________. What happened? ___________________________________________ 10. Invest or Save? What will you do?___________1987 ________________________. What happened? ___________________________________________ 11. Invest or Save? What will you do?_______ ____Market ______________________. What happened? ___________________________________________ 12. Invest or Save? What will you do?___________Stock _______________________. What happened? ___________________________________________ How did you turn out? $Why?
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