• Stock: Part ownership in a company
  • Shares: Individual pieces of ownership
  • Gross National Product (GNP): The total value of goods and services produced in a nation during a specific time
  • Buying on margin: When people buy stocks with loan from stockbrokers...
  • Black Tuesday: October 29, 1929
  • Supply and Demand: When the supply is low and the demand is high, the prices rise... But when supply goes up and demand decreases, prices lower...

many people has invested their money buying stocks in order to make a profit or more money.
If the stock does not change for a certain amount of time, they basically did not make any profit, also if the stock goes down, they basically loose money...



Wrap Up/Summary
Write either a journal entry in which you describe the stock market crash and how it has affected you and your money OR write a letter to a friend in which you urge him or her to be careful about making stock market investments. Use the notes you took to support your position.

Dear Ted,
It's been a while since we last talked, and i hope that everyhting is pretty good for you and the family. The reason why i'm writing you this letter is because the last time we spoke, you came up with the idea of investing almost half of your fortune in this new company, and frankly, I would not do that if i was you because hopefully you are aware of what just happened here in America a couple days ago. Due to a massive stock sale, our stock market crashed and now everyone is suffering fom that. a lot of people are losing their jobs, banks are going out of business, and so one. I'm telling you brother, this situation is not one of the best. It's terrible, people can only buy important and necessary stuff because money is now rare, in order to make the family happy, one now have to make a lot of sacrifice, try to sell some belongings at a low price just so that you can get people to buy it in order to make some money. the streets are now packed with the so-called hoboes ( teenagers in need of some sort of support) and the people are now living in what we call hoovervilles. It's really terrible man, I'm not trynna tell you not to invest your money, but i think it would have been better if you could just be careful because loosing everything and being a victim of foreclosure is not fun at all...




The Great Depression was a severe worldwide economic depression in the years precedind world war II. With the crash of the stock market, everything automatically went down. People lost their jobs, basically in 1930, 25% of all workers and 37% of all nonfarm workers were unemployed. The Bank industry was stongly affected. Banks went bankrupt, could not get the money they invested in stocks back and now people could not get funded in any possible ways. A lot of people, unable to pay their debts or bills were victims of foreclosure and had to live in what we called hoovervilles. Farmers were also affected by the situation and even teenagers were wandering wild in the streets looking for food or support. They were called hobos.