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8th Grade Stock Market Simulation and Roaring 1920s

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The Stock Market Simulation and Roaring 20s

 

Listen for period by period announcements regarding the rise and fall of your stocks.

The Roaring 20's, the Stock Market, and the Great Dression

In the 1920's, things were really good in the US and around the world. The increase in companies was causing growth in the economy. With technology improving quickly, many people expected the economy to rise. During the 1920's, people received more income. So, they spent more and stock prices began to rise. Billions of dollars were invested in the stock market as people began expecting to make millions on the rising stock prices. Everything was well.

Many investors invested their money and any other money they had. As the prices continued to rise, some analysts began to warn that it can't last forever, but they were ignored. Finally, in October 1929, the buying craze began to stop, and was followed by an even wilder selling craze.

On Thursday, October 24, 1929, the bottom began to fall out. Stock prices began to fall and fall. Investors tried to sell their holdings. By the end of the day, the New York Stock Exchange had lost four billion dollars, and it took exchange clerks until five o'clock AM the next day to get everything organized. By the following Monday, the people finally realized what had happened AND THEY PANICKED! Thousands of people were left with no money. The worst part was that they were ordinary people. By the end of the year, stock values had dropped by billions of dollars.

The banks began to fail. And the Great Depression had begun.

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