Stock Market Simulation

Transcription

1 Stock Market Simulation

2 Background The 1920s were an age of dramatic social and political change. For the first time, more Americans lived in cities than on farms. The nation s total wealth more than doubled between 1920 and 1929, and this economic growth swept many Americans into an affluent but unfamiliar consumer society.

3 People from coast to coast bought the same goods (thanks to nationwide advertising and the spread of chain stores), listened to the same music, did the same dances and even used the same slang! Many Americans were uncomfortable with this new, urban, sometimes racy mass culture ; in fact, for many even most people in the United States, the 1920s brought more conflict than celebration. However, for a small handful of young people in the nation s big cities, the 1920s were roaring indeed

4 The 1920s were also a time when playing the stock market became more popular. Many people were able to get rich almost overnight, and could afford to buy the new modern conveniences like a radio, washing machine, record player, or even a car. Even if you could not afford these things, you still might be able to attain them by buying on credit, which became much more common in the 1920s.

5 Step 1: Move into assigned groups. Step 2: One person will be the banker and move to your group s Bank / Wall Street seat. -One person will be the stock trader : The stock trader is in charge of buying/selling/trading stocks when markets open -One person will be the mathematician -One person will be the recorder - One person will oversee the group to make sure all is running smoothly Step 3: Decide as a group which stocks you want to invest in after reading over the stock information sheet. Step 4: Are you ready? You will have two minutes to trade when the stock market opens each round.

6 Stock Description Montgomery Ward A Petrol chemical plant. formed with the idea of pooling together with foreign powers to create electrochemical fuel. Telephone and telegraph company with the goal to get a phone in every house. Its value had steadily increased over 14 years. Competed with Ford motors, until Ford bought it in This means, now you own Ford stock. New Company with a goal to bring electricity to every home by creating dams and hydroelectric power. New catalog company that competed with Sears. US Radio Popular novelty item captured Americans spirit. Both the lower and middle class own them. US Steel Produced the most steel in the world during the war. Stocks doubled in 4 years.

7 Round $ $ $ $ $ First Commercial Radio Broadcast Aired. There is a great feeling of post-war excitement. Montgomery Ward $25 US Radio $10 US Steel $20 Play sound to Start Market Play sound during Floor Trading

8 Round 2 $150 $170 $25 $40 $25 $30 $50 $60 $50 $ Jazz is ringing in the ears of people everywhere. Montgomery Ward $25 $40 US Radio $10 $30 US Steel $20 $80 Play sound to Start Market Play sound during Floor Trading

9 Round 3 $170 $200 $40 $75 $30 $50 $60 $75 $70 $100 Montgomery Ward $40 $75 US Radio $30 $70 US Steel $80 $ More people are driving cars and dancing to new types of music. Stock speculation (high risk, high reward stocks) at an all-time high Play sound to Start Market Play sound during Floor Trading

10 Round 4 $200 $300 $75 $100 $50 $150 $75 $250 $100 $ People are reading The Great Gatsby and Flapper dresses are in style. Montgomery Ward $75 $100 US Radio $70 $75 US Steel $150 $250 Play sound to Start Market Play sound during Floor Trading

11 Round 5 $300 $350 $100 $150 $150 $250 $250 $400 $200 $ Things are going well in America. Charles Lindbergh is famous for his flight across the Atlantic. Montgomery Ward $100 $125 US Radio $75 $100 US Steel $250 $260 Play sound to Start Market Play sound during Floor Trading

12 Round 6 $350 $360 $150 $160 $250 $260 $400 $420 $250 $300 January 1929 Herbert Hoover has been elected president; he promises Americans a continued sense of prosperity. Montgomery Ward $125 $140 US Radio $100 $120 US Steel $260 $265 Play sound to Start Market Play sound during Floor Trading

13 Stock Market Simulation Become Rich!! Round 7 $360 $340 $160 $170 $260 $280 $420 $440 $300 $320 Montgomery Ward $140 $100 US Radio $120 $130 US Steel $265 $270 September 1929 People have been buying stocks on margin, which allows people to borrow money to buy more stock than they would be able to. Essentially, people are buying stock with the hope that their earnings will pay for them later. Prosperity is overflowing! Play sound to Start Market Play sound during Floor Trading

14 Round 8 $340 $50 $170 $2 $280 $10 $440 $30 $320 $20 Montgomery Ward $100 $5 October 29, 1929 (Black Tuesday) Panic has hit the wall street and people are selling off all their stocks. Prices are plummeting. US Radio $130 $5 US Steel $270 $20 Play sound to Start Market Play sound during Floor Trading

15 Round 9 $50 $10 $2 $.50 $10 $1 $30 $5 $20 $5 Montgomery Ward $5 $1 US Radio $5 $2 February 1930 America is officially in the Great Depression. Unemployment is climbing at an unrelenting rate. People are losing their homes, savings, and future earnings. Some Americans are now living in shantytowns and standing in bread lines to receive food. US Steel $20 $10

16 The Great Depression Begins November 1930 The prosperity of the 1920s is officially over. The country is suffering, but Herbert Hoover believes that the economy will correct itself with time (this is known as laissez faire). Americans are pleading with their government for help.

17 The Great Depression Begins End of the Game: Step 1: Add up how much money you would have left (if you were to trade in your stocks at their current value) Step 2: tidy your materials and return stock folder to teacher Step 3: Complete the reflection questions