What should students be able to do at the end of this lesson? The students will understand the causes of the stock market crash and how the crash helped lead to the great depression. Capital is the tools needed to produce things of value out of raw materials. Buildings and machines are common examples of capital.

A factory is a building with machines for making valued goods. Throughout the twentieth century, most of the capital in the United States was represented by stocks. A corporation owned capital. Ownership of the corporation in turn took the form of shares of stock. Each share of stock represented a proportionate share of the corporation.

The stocks were bought and sold on stock exchanges, of which the most important was the New York Stock Exchange located on Wall Street in Manhattan. Throughout the s a long boom took stock prices to peaks never before seen. From to stocks more than quadrupled in value. Many investors became convinced that stocks were a sure thing and borrowed heavily to invest more money in the market. But in , the bubble burst and stocks started down an even more precipitous cliff.

This had sharp effects on the economy.

Stock Market Crash Lesson Plan: Stock Market Bubbles and Crashes

Demand for goods declined because people felt poor because of their losses in the stock market. New investment could not be financed through the sale of stock, because no one would buy the new stock.

But perhaps the most important effect was chaos in the banking system as banks tried to collect on loans made to stockmarket investors whose holdings were now worth little or nothing at all.

Free Stock Market Game for Kids (with Lesson Plans)

Worse, many banks had themselves invested depositors' money in the stockmarket. When word spread that banks' assets contained huge uncollectable loans and almost worthless stock certificates, depositors rushed to withdraw their savings.

Unable to raise fresh funds from the Federal Reserve System, banks began failing by the hundreds in and By the inauguration of Franklin D. Roosevelt as president in March , the banking system of the United States had largely ceased to function.

Businesses could not get credit for inventory.

Checks could not be used for payments because no one knew which checks were worthless and which were sound. Roosevelt closed all the banks in the United States for three days - a "bank holiday. Eventually, confidence returned to the system and banks were able to perform their economic function again. To prevent similar disasters, the federal government set up the Federal Deposit Insurance Corporation, which eliminated the rationale for bank "runs" - to get one's money before the bank "runs out.

Another crucial mechanism insulated commercial banks from stock market panics by banning banks from investing depositors' money in stocks. Make connections to prior learning?

They truly get into the activity and understand supply and demand in a very real and concrete way. Social Studies , U.

History and Geography , Great Depression , supply and demand , stock market crash Save Common Core Tags Close. The Stock Market Crash Robin Daugherty King's Ridge Christian School, Ga Alpharetta, GA. Lesson Objective The students will understand the causes of the stock market crash and how the crash helped lead to the great depression. The Stock Market Crash of Learning Objectives: Analyze — investigating through supply and demand and investigating a stock for homework.

What made the stock market crash? Here's a brief summary. Ask the students to recall the stock market activity we played the day before. Remind the students that when the market crashed some of the student owed the bank money, because they had borrowed to invest.

Show Youtube video to start the lesson. There is a link in the flipchart that that will take you to the NYSE. Once on the stock exchanges website show the students the stock ticker, so they can get an idea of what a ticker is. Watch the following video http: The second page of the flipchart introduces the supply and demand activity.

Read through the activity completely before attempting in your classroom. I have found that this activity works best with no homework passes.

It is very important to not let on that you have more passes, demonstrating the fact that 1 of anything is worth more, than multiple. After the supply and demand activity it is important to discuss with the students what happened during the activity.

Stunning Chart: Today’s Stock Market is Eerily Reminiscent of …

I ask the students to think about when a new ipod comes out — what happens to the price. Then we talk about what happens when a new generation comes out — the previous generation ipod drops in price. After finishing the activity, go back and finish the flipchart.

This is a fairly short lesson that is really meant to set the stage for continuing on into the great depression. Performance will be assessed by classroom discussion. This is a highly interactive lesson and all participants should be participating in the discussions and activities. The students will learn how to make a graph based on the information we will make a line graph to show the change over time.

What went well and needed improving: History and Geography , Great Depression , supply and demand , stock market crash Grade s: April 9th, Visibility: Keep me logged in Forgot Password? State Standards Grades Subjects. Deliver the right support at the right time to every teacher.

NEA - Understanding the Stock Market

Overview Meet the Master Teachers. Innovative lessons from effective teachers! Browse over 1,, lessons plans, classroom materials, and instructional resources from high-performing teachers. Already have an account?

Keep me logged in. Don't have an account? Your feedback is important. Thank you so much for being part of the BetterLesson community. We will use your feedback to improve the experience for every teacher on our site. Please update your account information. If you're ready to get some TLC for your PLCs, request a demo. Thank you for your interest in TeachCycle! We'll be in touch soon.

I never received the confirmation email I have already confirmed my email I will verify my account later. See details for more info. New York Stock Exchange. The Great depression lesson 2.