Omnibus IIIB

Rules for the Stock Market Game, 1870s

You will have the opportunity to play the New York Stock Market with History Money between 1871 and 1878. When you have had a chance to read the Stock Prospectus, you will be able to buy any of the eight stocks listed on the Prospectus. You may buy stock from as many companies as you have money, or you may invest all your money in one stock. As the game begins, all stock will be sold at one dollar ($1) a share, but you must buy in ten share lots. The object of the game is to make as much money as you can. When everyone has purchased their stock for 1871, your teacher will stop the game and post the new stock prices for 1872. The new price will be the value of your stock in that year. If your stock changed in value, you may want to sell it back to the brokers and invest at the new price in some other stock. In other words, you will be buying and selling stock in the eight year period of the game. For the most part, the companies on your prospectus were real companies and their value will be based on the actual prices of that time. From Six Involvement Exercises for Untied States History 1840-1880, Volume II Prepared by David Sischo, Roosevelt High School, Fresno, California.

Stock Prospectus 1871 The Thomson Steel Company is just being capitalized. They will sell $12,000,000 in stock valued at one dollar a share. They plan to produce cheap steel which will sell at 75 dollars a ton below current costs. They have purchased the rights to the open hearth process developed by Bessemer. Wall Street brokers feel this is a sound investment. Studebaker Carriage: A company under new management which will make wagons and carriages for use on the overland trails to California and Oregon. They plan to produce a durable, cheap form of transportation. Russell, Majors, and Waddell, owners of the Pony Express have invested in this company. John Deere Company: A family company owned by the manufacturer of the famous frontier plow. This company has made great profits in the past 20 years. The Company is making a public offering of stock for the first time. Brokers feel this company has a bright future. Comstock Silver: An opportunity of a lifetime to buy into one of the famous silver mines in Virginia City, Nevada. They are located on a silver vein which is said to be seven miles long. Drexel-Morgan and Company: Investment brokers located on Wall Street in New York City. Aggressive management under the leadership of J.P. Morgan has made this company the most successful in ithe stock and bond market. The Great Northern Railroad: A new company just being capitalized at $10,000,000. The company plans to build a transcontinental railroad from St. Paul, Minnesota to Seattle, Washington. James Hill, the director, refuses to take land grants or loans from the federal government. Private capital will be used. Johnson Fuel Oil: A company which sells kerosene for lamps and heating oil, and refines crude oil. The company has borrowed large sums of money to build a new cracking tower which will revolutionize the oil processing business. Brokers feel this is a risky investment because of the companys lack of capital. Durham Smoking Tobacco: A well-established company which imports cigars from Cuba, and sells Bull Durham Smoking Tobacco. Their new management is aggressive and young. Currently their stock is one of the hottest on the stock exchange. It has tripled in value in the last 12 months.

From Six Involvement Exercises for Untied States History 1840-1880, Volume II Prepared by David Sischo, Roosevelt High School, Fresno, California.

1871 1872
Thompson Steel

1873

1874

1875

1876

1877

1878

Studebaker

John Deere

Comstock Silver

DrexelMorgan Great Northern Rail Road Johnson Fuel

Durham Tobacco

From Six Involvement Exercises for Untied States History 1840-1880, Volume II Prepared by David Sischo, Roosevelt High School, Fresno, California.