Second Semester Chapter 10

Stock market Crash of 1929by Mr. P

Friday, February 1, 13

STOCK MARKET CRASH

Friday, February 1, 13

What caused the crash?

Hoarding Money

Gold Standard

Smoot-HawleyTariff: raised

tariffs on importedgoods

Stocks were overpriced

Buying on Margin/

over Speculation

The Federal Reserve

Hoarding Money

Friday, February 1, 13

Effects of the Crash

Banksclose

Hoover-villes

Farm Distress

Peopleare

Homeless

Businessbankrupt

People lostjobs

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Cures for the Crash:

WWII

FDR: FiresideChats

Pay farmers to

not produce

New Deal

Increasemoney supply

Bank Holidays

WWII

Friday, February 1, 13

Lessons to be learned:

Buy what you know

Avoid penny stocks

Don’t sell near the bottom

Invest at regular

intervals

If it is to good

to be true, it is

Take your profits (30%)

Don’t get greedy

Never buy on margin

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Words to know about stocks:

nBuying on marginn Stock splitn Dividendn Taxesn CD's versus mutual funds nPurchasing a new carn Stock brokers

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The End

✤ QUESTIONS . . .

Friday, February 1, 13