Hoover

How does Hoover see the future

Poverty is going to be over soon

The Great Depression

World-wide economic decline characterized by high unemployment

Stock

Part ownership in a company that is publicly traded on an open market such as the New York Exchange

Buying on Margin

Purchasing a stock for only a fraction of the total price anticipating growth

What happens when the stock reaches a set price

The broker or banker sells, taking most profits and leaving most losses to the borrower

When a stock’s value increases…

Broker profits $500 just by lending you money

When a stock’s value decreases…

The stock price falls a set %, the broker sells the stocks, and you take a huge loss

How does buying stock work

1. RESEARCH
2. BUY the stocks
3. TAKE a PROFIT or LOSS

The Bull

People bought stocks because their perceived values continued to increase. This led to ever-increasing prices of stocks.

The Bear

Many individuals began to sell their stocks, leading to shortened demand for stocks and falling prices.

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