Download Stock Market

Canada during the 1920s
-The Stock MarketFor many people in the 1920s, the stock
market seemed and easy way to get rich
quickly. People in all walks of life gambled
on the stock market. Rich business
tycoons invested in shares, but so did their
chauffeurs and the typists in their offices.
Feelings of confidence where high during this time.
It was not necessary to have a lot of money to play the stock market. You could buy stocks on credit, just as
you could by a car or a washing machine. All that you needed was a small cash down payment, usually 10
percent (this was called buying on the margin). This over extension of credit is what led to the collapse of the
American Stock Market, which had tremendous affects throughout the world.
The economy in Canada in the 1920s was closely linked with that of the United States. In those years, we
bought 65% of our imports from the Americans. Forty percent of our exports were sent to the United States. It
had replaced Britain as our largest trading partner, and source of funds for the investment in Canadian
Industries. It was not surprising that when the American economy got sick, Canada also suffered.
Terms:
BLACK TUESDAY
Portfolio:
On Tuesday, October 29th, Wall Street's New York
Stock Exchange experienced an unprecedented
wave of panic selling of stocks. An earlier sell-off on
the previous Thursday, "Black Thursday," combined
with Tuesday's sales led to a collapse in stock prices
and the loss of many American fortunes.
Stock:
Share:
A few investors who lost all their money jumped to
their deaths from office buildings. Others gathered in
the streets outside the Stock Exchange to learn how
much they lost.
Bull Market:
Bear Market:
The Great Crash marked a turning point between the
optimism of the 1920s, the Roaring Twenties, and the
pessimism of the 1930s, the period of the Great
Depression.
Stock Split:
Dividend:
After the crash, the American economy was a dead
beast with many banks failing, as people ran to them
to withdraw their savings. Without Federal Deposit
Insurance, nonexistent then, many hardworking
people lost all the money they had deposited into the
bank.
Buying On Margin:
Stock Ticker:
During the 20s a self-perpetuating cycle was created:
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standardized mass production led to
better machinery in factories, which led to
higher production and higher wages, which led to
more demand for consumer goods
Which led back to more standardized mass production