Stock Market Simulation

Background • The 1920s were an age of

dramatic social and political change. For the first time, more Americans lived in cities than on farms. The nation’s total wealth more than doubled between 1920 and 1929, and this economic growth swept many Americans into an affluent but unfamiliar “consumer society”.

• People from coast to coast bought the same goods (thanks to nationwide advertising and the spread of chain stores), listened to the same music, did the same dances and even used the same slang!

• Many Americans were uncomfortable with this new, urban, sometimes racy “mass culture”; in fact, for many–even most–people in the United States, the 1920s brought more conflict than celebration. However, for a small handful of young people in the nation’s big cities, the 1920s were roaring indeed

• The 1920s were also a time when ‘playing’ the stock market became more popular. Many people were able to get rich almost overnight, and could afford to buy the new modern conveniences like a radio, washing machine, record player, or even a car. Even if you could not afford these things, you still might be able to attain them by buying on credit, which became much more common in the 1920s.

Stock Market Simulation – Become Rich!!

Step 1: Move into assigned groups.

Step 2:

One person will be the banker and move to your group’s “Bank” / Wall Street seat.

-One person will be the stock trader : The stock trader is in charge of buying/selling/trading stocks when markets open

-One person will be the mathematician

-One person will be the recorder

- One person will oversee the group to make sure all is running smoothly

Step 3: Decide as a group which stocks you want to invest in after reading over the stock information sheet.

Step 4: Are you ready? You will have two minutes to trade when the stock market opens each round.

Stock Market Simulation – Become Rich!!

COMPANYStock Description

Allied ChemicalA Petrol chemical plant.

A & F Powerformed with the idea of pooling together with foreign powers to create electrochemical fuel.

A.T & TTelephone and telegraph company with the goal to get a phone in every house. Its value had steadily increased over 14 years.

Auburn AutoCompeted with Ford motors, until Ford bought it in 1924. This means, now you own Ford stock.

General ElectricNew Company with a goal to bring electricity to every home by creating dams and hydroelectric power.

Montgomery Ward New catalog company that competed with Sears.

US Radio Popular novelty item captured Americans spirit. Both the lower and middle class own them.

US Steel Produced the most steel in the world during the war. Stocks doubled in 4 years.

Stock Market Simulation – Become Rich!!Round 1

COMPANYLAST ROUND SHARE PRICE CURRENT PRICE

Allied Chemical-------- $150

A & F Power-------- $25

A.T & T-------- $25

Auburn Auto-------- $50

General Electric-------- $50

Montgomery Ward -------- $25

US Radio -------- $10

US Steel -------- $20

1920

First Commercial Radio Broadcast Aired.

There is a great feeling of post-war excitement.

Play sound to Start Market Play sound during Floor Trading



Allied Chemical$150 $170

A & F Power$25 $40

A.T & T$25 $30

Auburn Auto$50 $60

General Electric$50 $70

Montgomery Ward $25 $40

US Radio $10 $30

US Steel $20 $80

1922

Jazz is ringing in the ears of people everywhere.





A & F Power$40 $75

A.T & T$30 $50

Auburn Auto$60 $75



US Radio $30 $70

US Steel $80 $150

1924

More people are driving cars and dancing to new types of music. Stock speculation (high risk, high reward stocks) at an all-time high





A & F Power$75 $100

A.T & T$50 $150

Auburn Auto$75 $250



US Radio $70 $75

US Steel $150 $250

1926

People are reading “The Great Gatsby” and

Flapper dresses are in style.





A & F Power$100 $150

A.T & T$150 $250

Auburn Auto$250 $400



US Radio $75 $100

US Steel $250 $260

1928

Things are going well in America. Charles Lindbergh is famous for his flight across the Atlantic.





A & F Power$150 $160

A.T & T$250 $260




US Radio $100 $120

US Steel $260 $265

January 1929

Herbert Hoover has been elected president; he promises Americans a continued sense of prosperity.





A & F Power$160 $170

A.T & T$260 $280




US Radio $120 $130

US Steel $265 $270

September 1929

People have been buying stocks on margin, which allows people to borrow money to buy more stock than they would be able to. Essentially, people are buying stock with the hope that their earnings will pay for them later. Prosperity is overflowing!





A & F Power$170 $2

A.T & T$280 $10

Auburn Auto$440 $30



US Radio $130 $5

US Steel $270 $20

October 29, 1929

(Black Tuesday)

Panic has hit the wall street and people are selling off all their stocks. Prices are plummeting.





A & F Power$2 $.50

A.T & T$10 $1

Auburn Auto$30 $5



US Radio $5 $2

US Steel $20 $10

February 1930

America is officially in the Great Depression. Unemployment is climbing at an unrelenting rate. People are losing their homes, savings, and future earnings. Some Americans are now living in shantytowns and standing in bread lines to receive food.

The Great Depression Begins

November 1930

The prosperity of the 1920s is officially over. The country is suffering, but Herbert Hoover believes that the economy will correct itself with time (this is known as laissez faire). Americans are pleading with their government for help.

The Great Depression Begins End of the Game:

Step 1: Add up how much money you would have left (if you were to trade in your stocks at their current value)

Step 2: tidy your materials and return stock folder to teacher

Step 3: Complete the reflection questions

Stock Market Simulation - Welcome to Mrs. Beckett's...

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