Stock trading handout PDF

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Stock trading handout
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Causes: 1. Over Confidence • Feeling of invincibility and irrational exuberance1 2. Boom of the Economy 3. Consumerism 4. “Easy Credit Era” 5. Stock Market Boom 6. “Buying on margin” 7. Overproduction 8. Unfair Wealth Distribution 9. ”Margin Calls”

Black Thursday - 24.10.1929: • First day of of the stock market crash • Fell 11% • closed down with only 2 percent lost

1 Exuberance = being full of energy

Black Friday – 25.10.1929: • Positive trend continued • Rose 1% à301,22 • Closed Saturday at 298,97 Black Monday – 28.10.1929: • Fell 13% à260,64 Black Tuesday – 29.10.1929: • Last day of the stock market crash • Trade record: 16,4 million shares • Dow dropped 12% à 230,07 The Aftermath:  Dow dropped 25%  Stock prices continued to fall  More than $100 Billion disappeared until November 13 Effects: 1. Stock Market 2. Suicides 3. Psychological effects 4. Bankruptcies 5. Fall in Demand 6. Low productivity 7. Starvation 8. Great Depression

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