Download How did the stock market work?

How did the stock market work?
Learning objective – to be able to
understand how the stock market worked
in America.
I can describe some
of the key features of
the US stock market.
Grade D
I can explain using
specific vocabulary
how the US stock
market worked.
Grade B
I can explain why more
people
in
America
invested money in the
stock market during the
1920s.
Grade A
Starter – Guess the number of people who brought
shares in 1928.
In 1920, 4 million people owned shares.
By 1928, over ……. million people owned
shares.
Starter – Guess the number of people who brought
shares in 1928.
In 1920, 4 million people owned shares.
By 1928, over 24 million people owned
shares.
President Herbert Hoover in 1928
said …….
The poor man is
vanishing from
among us.
With hard work and
good fortune anyone
can make money –
look at what’s
happening in the
stock market
What is the stock market?
The stock market was where shares of companies were sold. There were a
number of stock markets across America. The largest one was the New York
Stock Market situated on Wall Street.
How did the stock market work?
To set up a company you need money for
wages, premises and so on.
Money is usually acquired through
investors giving a company money in
return for a share of the business.
A shareholder makes money by –
- Receiving a share of the profits – called
a dividend – per year.
- Selling the shares at a profit at a stock
market. BEWARE – this only happens if
the business is doing well.
What was ‘playing on the stock market’?
‘Playing the stock market’ became a
national craze where millions of
people brought shares in all sorts of
companies and sold them at a profit –
then brought more shares to make
even more money.
In 1920, 4 million people owned
shares.
By 1928, over 24 million people owned
shares. Everybody seemed to be an
investor.
What was ‘buying
on the margin’?
Buying on the margin
was the practice of
buying a share by paying
a deposit of 10% of the
share’s value paying the
remainder later, usually
when the shares are sold
at a profit.
Tasks
Complete the tasks on the worksheet as fully as you can.
Extension question
Write a one page summary answering the question – why
did people invest in the American Stock Market during the
1920s?
Plenary
This
word
cloud
summarises what we
have learned today.
Which three words are
the most important in
summarising
the
lesson. Explain your
selection.