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What year did the stock market crash?
1929
Name the one piece of technology we discussed in class that caused issues
Stock Ticker
How much experience did investors have during the 1920s?
None!
Name one lesson you learned from the events that took placed during the 1920s
-Patients is key
-Be mindful of market bubbles
-Dollar Cost Averaging may help in times of uncertainty
-Speculation can be a killer
-Dont invest what you cannot afford to lose
T/F: The Stock Market Crash was the CAUSE of the Great Depression
FALSE! It was a symptom than accelerated it!
Which event had more Americans unemployed: Covid or the Crash?
Covid
Name a PRO of Dollar Cost Averaging
PRO: Get in a stock at multiple price points, helps reduce risk, can help minimize losses
Approximately how many years did it take for the stock market to recover?
~25 years (1/4 of a decade)
What is the target unemployment rate in the United States?
~5%
Explain what stocks being in "excess of value" means
Prices of shares were significantly more expensive than their true value
Name a CON of dollar cost averaging?
CON: You may be buying at a more expensive price
Durant Motors eventually evolved into which organization?
General Motors
What is dollar cost averaging?
What role did technology specifically play in the role of the crash?
Technology was unable to keep up with the rapid moving prices
Describe the performance of the stock market prior to the crash
Stocks were doing well; prices were going up; tons of speculation and inexperience
Describe the phenomenon of Panic Selling
People irrationally reacting to an event, people typically will sell their assets in order to minimize losses or because they felt others were jumping ship
T/F: Only one individual in the public has to sell their shares to be considered panic selling
FALSE; large groups of people
Name three PRECONDITIONS of the state of the economy behind the scenes during the 1920s
- Low Wages
- Low Production
- Overvalued Businesses
- High level of Debt
- High level of loans
Which company eventually overtook TelTone?
The Bell System
What was the unemployment rate during Covid?
~15%
Name of the tree where founding NYSE document was signed
Buttonwood
What is the nickname for the day were the stock market utterly crashed?
Black Tuesday
What does HODL mean?
Hold On For Dear Life
What did the unemployment rate peak at during the crash?
~30%
How many Americans were jobless due to the crash?
15 million