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TRANSCRIPT
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
Friday, February 1, 13
Cures for the Crash:
WWII
FDR: FiresideChats
Pay farmers to
not produce
New Deal
Increasemoney supply
Bank Holidays
WWII
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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