The Stock Market and the Crash of 1929

Grade: Length:
10 (Applied) Two 75-minute periods

Subject / strand(s): Teacher:

Canadian History Since World War I Stephanie Lett

Description
In this lesson, students will learn about causes of the Great Depression of the 1930s. Through a stock market simulation, students will learn how the stock market works and gain an understanding of the effect of the Stock Market Crash of 1929 on individual shareholders. In the following class, they will outline the underlying and immediate causes of the Great Depression and how they affected Canadian society.

Expectations
Social, Economic, and Political Structures Strand - Overall: explain changing economic conditions and patterns and how they have affected Canadians; - Specific: compare economic conditions at selected times in Canadas history and describe their impact on the daily lives of Canadians

Resources
Equipment and materials - Computer and projector - Prezi and Powerpoint - Stock certificates - Bell Handouts - Stock Market Simulation - Keeping the Books - More Immediate Causes of the Great Depression

Strategies
(click all that apply) cooperative learning think-pair-share learning centers hands-on activity demonstration simulation other: lecture, worksheets

Student groupings
(click all that apply) whole class pairs small groups independent work

Specific Content
Motivation

Timing

15 min. At the beginning of the class, rhetorically ask students Who wants to get rich today? Remind students that in the 1920s, the economy was prospering, and people were optimistic. Explain that for these reasons, many Canadians invested money in the stock market with the hope of getting rich. Show and explain short Prezi on how the stock market works, explaining the concepts of a stock and how they can be bought and sold to make a profit

Body

60 min. Ask for a volunteer to be the stock broker. The remaining students should get into groups of 3. Give each student a copy of the Stock Market Simulation and Keeping the Books handouts. Explain that each group will be given $5000 to invest in stocks from three different companies. Read the company profiles to the students. Tell students that stocks will be sold in 10 minute rounds, and the stock prices will change at the end of each round (which will be indicated by the ringing of a bell). Students can buy and sell stocks through the stock broker, and must use the Keeping the Books worksheet to keep track of their assets. They can buy as many stocks as they can afford with the $5000 they are given. At the beginning of each round, write the stock prices on the board and ring a bell to open the market. Circulate among the students during the simulation to ensure that everyone understands and is participating in the activity.

5 min. After the simulation, ask students how well they did. Did they make money or lose money? Which group was most profitable? Which strategies were the most successful? What effect did the crash at the end of the simulation have?

Check for understanding (Day 2)

15 min Use the Occupation Cards activity (attached) to introduce students to the idea of growth and recession in the economy.

Hook (Day 2)

Body (Day 2)

30 min. Show and explain a PowerPoint on the underlying and immediate causes of the Great Depression. Provide students with a copy of point form notes on the topic to keep in their binders.

Consolidation (Day 2)

25 min. Divide students into groups of 3 and have them create graphic organizers (the Frayer Model - Definition, Characteristics, Example, Non-Example) defining the term Depression. Allow them to use their textbooks, notes, and smartphones to complete it.

Closure
Have students share the ideas they have included in their graphic organizers to conclude the class.

Assessment & Evaluation

Type (check all that apply)
informal discussion informal observation student conference performance task oral presentation written assignment journal/portfolio concept map test/quiz other: graphic organizers

Student performance
Students will have the opportunity to demonstrate their knowledge and critical thinking skills through the completion of a graphic organizer. If the teacher observes any misunderstandings or if the students have any questions, these can be addressed in subsequent lessons on the Great Depression.

Lesson review (how did it go? changes?)

Stock Market Simulation

In this game you will simulate the prosperity of the stock market in the 1920s. You will be given $5000 to invest in stocks.

Your Goal: Make as much money as possible!

How will you make money?
1. Invest in stocks. 2. Wait for the value of the stocks to increase. Remember that stock values will increase and decrease with the value of the company! 3. Sell stocks at a profit.

Which stocks can you buy? Name: Bell Telephone Characteristics: This is a blue chip stock. It provides steady growth and regular dividends but is not likely to increase in value very rapidly. Name: Ford Motor Company Characteristics: This is a stable stock providing good growth and variable dividends. Name: Canada Cement Characteristics: This is a speculative stock. While dividends tend to be small this stock has the potential to grow very quickly and as a result is best suited for the confident investor. All sales must be made through the stock broker. Use the Keeping the Books balance sheet to keep track of your CASH assets only (NOT your paper stocks!).

Round

Cash Assets How much money do you have leftover from last round?

Keeping the Books Value of Stocks Profit from Purchased Selling Stocks How much money did and/or you spend buying stocks Dividends this round? Did you sell stocks this round? How much money did you make?

Remaining Assets at the End of the Round How much money do you have left at the end of the round?

$5000

Occupation Card Simulation (Adapted from Understanding Economics in U.S. History lesson plan, http://ushistory.ncee.net/wlg/focus_ushistory_lesson30.pdf) We discussed how in the 1920s, the economy was booming people had jobs, they had money, they were buying new inventions and technologies, and they were investing in the stock market and making millions But that couldnt last forever just as we saw in the stock market simulation yesterday Draw a picture of the boom/bust business cycle on the board and explain growth/recession For several reasons that we will discuss this class, by the end of the 1920s the economy started to slow down and enter a mild recession. Businesses started to slow down their expansion.

Tell the students who received Occupation Cards in the machineryproducing industry to stand up. They are now unemployed because business firms are ordering less machinery. Because they are unemployed, they have less money to spend on expensive houses and Model T Fords. Tell the students in car sales to stand up. They are now unemployed because sales of new cars are down. The car dealers who lay them off also cancel their orders to automobile factories. Owners of these factories fire autoworkers. Tell the autoworkers to stand up; they are now unemployed, too. Auto factories in turn cancel their orders for steel and other raw materials used to make cars. Tell the steel workers to stand up joining the ranks of the unemployed. Since sales of new houses have also gone down, tell the housing construction workers to stand up. Furniture sales are also down. Tell the furniture sellers to stand up. Furniture stores reduce orders to furniture factories. Tell the furniture workers to stand up. All these people are out of work. Ask the students who are still seated to look around at all the people who are unemployed. The jobs of students who are still seated are now in danger too. People who are unemployed dont buy new clothes. Tell the clothing salespeople to stand up. People who are unemployed dont eat out at restaurants. Tell the restaurant workers to stand up. Unemployed people still eat, but they cut back on food purchases, particularly the purchases of more expensive food items that mean higher profits for grocery stores. Grocery store owners reduce the number of their employees. Tell the grocery store workers to stand up. All these people are out of work. Tell the students that if people start buying again, unemployment will fall. Think about automobiles, for example. Automobiles wear out. If people decide to buy new automobiles, car dealers will place new orders. Auto workers and producers of materials for the auto industry will be reemployed. Tell the autoworkers and steelworkers to sit down. Car dealers will hire new salespeople. Tell the car salespeople to sit down. Furniture wears out, too, and eventually some people decide to buy new furniture. Tell the furniture makers and furniture salespeople to sit down. These people are back on the job. As more and more people gain employment again, some feel they can afford new homes. Tell the housing construction workers to sit down. People begin to buy higher priced food in grocery stores, to eat in restaurants and to buy new clothes. Tell the grocery store workers, restaurant workers and clothing salespeople to sit down. As purchases of various new products rise, business firms expand production and buy new machinery and equipment. Tell the machinery producers to sit down. These people are back on the job. By this time, everyone in the class is sitting.

OCCUPATION CARDS

You work in a factory that makes machinery You are an autoworker You sell cars You are a steelworker You are a construction worker You sell furniture You work in a furniture factory You sell clothing You work in a restaurant You work in a grocery store