The Stock Market in America
The workings of the US stock market, the rise in stock ownership during the 1920s, and the impact of shares on wealth. Learn how investors made money through dividends and stock market trading, and delve into the stock market craze that swept the nation.
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Presentation Transcript
How did the stock market work? http://t0.gstatic.com/images?q=tbn:ANd9GcRfkTQ8-k1VTykhUJTRaAmbukbslqEyQtZY14P-ZfGV-VkdBMZVIA:yhseconomics.wikispaces.com/file/view/stock-market-the-ride.jpg/242970225/stock-market-the-ride.jpg
Learning objective to be able to understand how the stock market worked in America. I can explain using specific vocabulary how the US stock market worked. Grade B I can explain why more people in invested money in the stock market during the 1920s. Grade A I can describe some of the key features of the US stock market. Grade D America
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 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. of
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 summarises what we have learned today. Which three words are the most important in summarising lesson. Explain your selection. word cloud the
