Teacher Notes: Stock Market Crash

  1. Speculation: people buying stocks and bonds for a chance in quick profit.
  2. Buying On Margin: paying for a small percent of the stock price as a down payment and borrowing the rest
  3. Sept: Stock Prices peaks and dramatically fell in one day.
    1. People begin to question the stock market and investor sold their stock and pull out.
  4. October 24: The Market takes a plunge for the worst. More investor got their stock and ran.
  5. Black Tuesday: The bottom falls out of the Stock Market.
    1. Shareholders try to sell stock.
    2. The number of shares that were dumped was at a record high of 16.4 million.
    3. People that bought stock on credit were now in huge debt.
  6. JFK’s father was safe from debt he sold his stocks and made money.
  7. Great Depression Causes:
    1. This cased the falling demand in consumer goods
    2. The government kept interest rates high, which allowed business to borrow large amounts of money and build up more debt.
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