The Stock Market
The Great Depression Activity
A market where buyers and sellers trade stocks. A stock is a share of a company that someone can purchase and sell for a certain amount.
- Causes: The New York Stock exchange started on May 17, 1792 when the buttonwood agreement was signed by 24 stockbrokers. The volume of stocks traded increased six times in the years between 1896 and 1901, and so the organization grew.
- Characteristics: The New York Stock exchange experienced a major crash in 1929 which was a major part of the Great Depression. There are two states of the market, the Bull and Bear markets. The Bull market is when prices are higher, and the Bear market is when the Market falls (usually goes down about 20% or more).
- Significance: The Stock Market is one of the most important factor of The U.S. economy today. Many Americans use this market today and we will probably use it too when we get older. So much money is put in to it, that if it crashes like it did in 1929 it would bring the country with it.