prA Prosperous Nation
Who was president prior to the Great Depression? (1929)
Herbert Hoover
What was Black Thursday?
The day prices began to fall and all buyers went to sell their stocks at once.
Why did it matter that the stock market crashed?
The stock market had signaled the collapse of industry and helped to bring on a severe economic depression not just in the United States, but in developed nations around the word.
What did Herbert Hoover study prior to becoming president?
Engineering
When was Black Thursday?
October 24, 1929
What were Hoovervilles?
Shantytowns of cartons and wood scraps on vacant lots.
What does it mean to buy stocks on "margin"?
You put down only a small amount of money to buy a share of a stock and borrow the rest from a broker that you must pay back.
What was Black Tuesday?
The start of a continuous drop in stocks where a record-high number of shares were exchanged (start of Great Depression).
How did the Great Depression affect peoples daily lives?
No jobs were available, leading to no money, thennnn leading to no food.
Why did people buy stocks?
People wanted money and often heard stories of people getting rich "overnight".
What were "holding companies"?
Companies charged with the responsibilities to hold the stock of other companies.
What steps did president Hoover take to stop the business decline?
He asked Congress to create the Reconstruction Finance Corporation.
Was Hoover Left or Right Handed?
Left Handed
What are two ways a person can make a gain by owning corporation stock?
1.) If the company grew and made a large profit, then the shareholder would paid a dividend as part of the profit.
2.) If the dividends grew, the value of the share would go up.
Who tried to stop the collapse of the stock market? and how?
Banks; they decided to pool together $30 million to help support the stock market led by Richard Whitney.
What was the Federal Home Loan Bank Act?
Act passed by Congress at Hoover's request to help people with mortgages from losing their homes.
What was the name of Herbert Hoover's pet dog?
King Tut:)