Understanding the Stock Market

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Understanding the Stock Market

• 11.6.1 Describe the monetary issues of the late
  nineteenth and early twentieth centuries that
  gave rise to the establishment of the Federal
  Reserve and the weaknesses in key sectors of the
  economy in the late 1920s.

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Important Terms

• Stock Market/Stocks384
• Buying on a Margin384
• Interest385
• Speculator385 and US Glossary
• The Federal Reserve237
• TariffUS Glossary and 388
• Bull Market/Bear Market384-385

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New York Stock Exchange
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Inside the NY Stock Exchange
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History of the New York Stock Exchange

• 1792formed by 24 stock brokers who took an oath
  on Wall street
• 1867first stock ticker
• 1914shuts down for 4 months due to World War I
• 1929Black Tuesday, October 29th

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Reading a stock market table

• Starbucks Corp.
• (SBUX)
• Volume 16,990,102
• Last Trade 8.45
• Change 0.62 (7.92)
• Day's Range 8.01- 8.50
• Now you get to pick your own stocks!

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The Federal Reserve System

• Created in 1913
• 12 regionseach with Federal Reserve Bank
• Provide safety net for banks
• Regulates money in circulation
• Sets interest rates

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Hidden Economic Problems in the 1920s

• Americans buy goods on credit
• Debt (1921-1929 personal debt doubles from 3.1
  billion to 6.9 billion)
• Americans buy stock!
• Buying on Margin
• Overproduction
• Underconsumption

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Dow Jones Industrial Average Today
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Comparing the Great Depression to Today
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Opening Bell