Stock Market

• • Stock: a share in the ownerships of a business
  • If you bought 100 shares in a business and the business had 1,000 shares in total, you would own 10%
• • Investor: person who puts money into a business in hope of making money.
• • Stock market (stock exchange): marketplace where stocks are bought and sold
• • Capital gain: profit a shareholder makes selling stocks for  higher price than originally paid of
• • Buying on a margin: borrowing money to buy stocks.
• • Buying $1000 worth of stocks, you pay $100 of your own money and borrow $900 to pay for the rest
  • If stocks increased in value, you might be able to sell them, pay back the money you borrowed and make profit
  • If stocks decreased in value and you end up selling them at a lower price than you paid for them,  you have lost some of your own money - and still have to pay back for the money you borrowed
• Prosperity cycle: increased demand for materials, demand for labour increases, wage increase, increase spending, increased investments, more production
• Depression cycle: Less jobs, lower wages, decreased demand, decreased demand for materials, decreased investments
• • October 4th – Toronto Stock Exchange reported 200 mill in losses 
  • October 21st – New York Stock Exchange reports substantial losses from stock sales
  • Black Tuesday: Oct 29, 1929 - when the stock market plummeted and the U.S. plunged into the Great Depression; Canada aswell
  • The Aftermath: after the crash, banks, companies and stores went out of business and people lost their jobs. Unemployment skyrocketed to 30%. Unstable, reserved and tumultuous decade