Download Stock Market

Stock Market
Mr. Biddle
Survey of Social Studies
Stock Market
• Stock Market – a place
where people can buy, sell,
or trade stocks
• Stock – Certificate of
ownership in a corporation,
or business
• Stockbroker – person who
buys or sells stocks for
investors
• Stockholder – a person who
owns a share of the stock in
a corporation (also known
as a shareholder)
Why Use the
Stock Market?
• Companies sell shares
of their companies to
raise money to start a
business or try to
expand their business
– Less risk of failure
• People buy stocks to try
and get in on the
businesses profit.
Reasons for the
Great Depression
1. Stock Market Crash
• Bull Market - When stock
sells are on the rise
• Speculation/Margin buying stocks on credit
• Margin Calls – Stockbrokers
call in the credit and debt
that is owed to the stock
market
• Black Tuesday – October
29, 1929 the stock market
system failed, because no
one was able to buy and
sell stocks
Reasons for the
Great Depression
2. Mass Production
• Country produces more
“goods” than there is
money to buy them in
the country
• Companies began to
stock pile merchandise
• This led to Mass Layoffs
Reasons for the
Great Depression
3. Banking Crisis
• People made bank runs
to pay off their Stock
debt (Margin)
• The banks were forced to
close, because they did
not have enough money
to give to everyone
Reasons for the
Great Depression
4. No World Wide Trade
• Hawley-Smoot Tariff –
Raised the $ on
imported goods and
countries did not want
to trade with US and
rose $ on them
• No $ coming in or out of
the US (No foreign
economic relief)
Reasons for the
Great Depression
5. Federal Reserve Failed
• It didn’t monitor interest rates like they
should’ve or kept the economy from failing.