History
This country created the world's first central bank.
What is the Netherlands?
A place where the issuing and trading of equity or stocks takes place.
What is the stock market?
“Stock markets are mirrors of the human psyche,” (Ferguson, 122).
Role of the human psyche must be factored in.
Law established his financial system in this country.
What is France?
This company lead to the creation of the stock market and the world's first stock exchange.
What is the Dutch East India Company?
The share of ownership of a company.
What is a stock?
“There was a time when academic historians felt squeamish about claiming that lessons could be learned from history,” (Ferguson, 164).
History repeats itself.
Name one stage of the course of financial bubbles.
What is displacement, euphoria/overtrading, mania/bubble, distress, or revulsion/discredit?
The first bubble occurred in this country.
What is France?
The amount of money paid by a company to its shareholders.
What is a dividend?
“Time and again, share prices have soared to unsustainable heights only to crash downwards again,” (Ferguson, 122).
Bubbles always burst.
The general consequences of a bubble burst. List three.
What is a decline in the market, loss of some individual's money, and loss of confidence in the market?
The inventor of the stock market bubble.
Who is John Law of Edinburgh?
Joint-stock corporations have this to protect their investors from losing all of their wealth.
What is limited liability?
“Confidence alone was the basis public credit, with confidence, banknotes would serve just as well as coins,” (Ferguson, 139).
Trust is the foundation of the global financial system.
The Chairman of the Fed during the dot com bubble.
Who is Alan Greenspan?
The amount of stock market crashes in the past century.
What is nine?
"An option but not an obligation to sell stocks at a good price in the future," (Ferguson, 170)
What is a put option?
“Once Dutch bankers started to accept VOC shares as collateral for loans, the link between the stock market and the supply of credit began to be forged,” (Ferguson, 133).
Credit allows the economy to function.
These two individuals' careers strongly resembled each other.
Who is John Law and Kenneth Lay?