Stock market crash of 1929 lesson plan

Stock market crash of 1929 lesson plan

By: MixMax Date of post: 30.05.2017

This lesson will promote student understanding of the economic causes of the Depression. It simulates the rollercoaster of emotions that investors endured in The Crash of was the impetus for the Great Depression, but it was the preexisting economic conditions - far more widely spread than the number of individual investors, that caused the downward spiral that doomed Herbert Hoover's presidency.

Write the following question on the board, and have students answer in their journals: Start with a brief discussion or explanation of what stock is pieces of ownership in certain companies and how stock markets operate supply and demand largely determine the value of stocks, as expressed by their price.

Each one will need a piece of paper, which they should turn "landscape" style lying on its side.

Education World: Every-Day Edits: Stock Market Crash of

On your classroom chalkboard, write 5 publicly traded companies that would have been around in I like to use RCA, Coca-Cola, Chase Bank, Rawlings, and Sears on the left margin of the board, leaving space in between. Across the top of the board, list 5 months - June, July, August, September, and October. Under June, make up prices for each company.

Stock Market Crash of , America in the s, Primary Sources for Teachers, America in Class, National Humanities Center

Tell them that they may not keep any money as cash, and make sure that they are keeping track of how many shares they have purchased, not just how much money they have spent. Track the performance of their purchases over the next three months, making up prices as you go. Make sure that prices rise, steeply in some cases.

Build class excitement by having kids compare how much they have made. Try to create a sense of competition.

stock market crash of 1929 lesson plan

In October, "crash" the market to levels considerably lower than the prices you started out with in June. Once the market has crashed, debrief the activity. Talk about how much unhappier people would be if the money were real. Then explain the concept of "buying on the margin" - buying stock with borrowed money. If the value of the purchase fell below its original price, it would trigger a margin call in which the lender would ask for their money back immediately.

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This would force the purchaser to sell and also somehow raise the balance owed in some other way. All of these sales would drive prices stock down, triggering more margin calls. There were several underlying causes that had quietly built up over time:.

Growing amounts of consumer debt. During the 's, more and more Americans bought more and more goods using credit that required regular installment payments. Simply put, they were overleveraged.

Low prices for agricultural commodities. After World War I, farmers failed to adjust to lessened demand, causing a supply glut. Manufacturers were largely ignorant of the fact that their products were nearing the saturation point for sales and continued to produce at robust rates, often borrowing money to do so. Weakness in traditional pillars of the economy. Coal was being supplanted by oil and railroads by automobiles.

Both these and their affiliates suffered. Stocks plummeting hurt businesses and individuals. Many people hurried to banks to withdraw their savings to cover themselves. The high level of withdrawals also known as "bank runs" caused many banks to close completely. Other banks called in all of their loans to cover withdrawals, causing businesses to close and lay off workers.

These workers tried desperately to get their savings if they had any out of banks, and the cycle began again. The downward spiral launched the country into the Great Depression. President Herbert Hoover was faced with an unprecedented challenge. Teaching Tools Teaching Tools Classroom Management Education Industry Student Assessment Tools Teaching Methods Preschool and Early Ed Preschool and Early Ed Infant Development Parenting Tips and Advice Preschool Crafts and Activities Preschool Lesson Plans and Theme Preschool Teaching Strategies Toddler Activities and Ideas Elementary School Elementary School Grade School Activities Lesson Plans for Pre-K and K Lesson Plans: Grades 1 - 2 Lesson Plans: Grades 3 - 5 Parenting Grade Schoolers Teaching Younger Students Middle School Middle School English Lessons: Grades History Lessons: Grades Math Lessons: Grades Parenting Preteens and Tweens Science Lessons: Grades Social Studies: Grades Teaching Middle Schoolers The Arts: Grades More High School 7 Homework Help 20 Special Ed 11 More Areas 4.

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Gifted and Exceptional St IDEA, IEPs and The Law. Teaching a Second Language. The Lesson The Crash of was the impetus for the Great Depression, but it was the preexisting economic conditions - far more widely spread than the number of individual investors, that caused the downward spiral that doomed Herbert Hoover's presidency.

Stock Market Game Start with a brief discussion or explanation of what stock is pieces of ownership in certain companies and how stock markets operate supply and demand largely determine the value of stocks, as expressed by their price. There were several underlying causes that had quietly built up over time: The Great Depression This unit on the Great Depression is intended for high school students.

The lesson plans are designed for a block schedule that has 88 minutes allotted for each class. Modifying them to fit a traditional, shorter period should not be a problem.

stock market crash of 1929 lesson plan

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