texas & the great depression chapter 23. stock many people who made money in the 1920s invested...
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Texas & the Great depression
Chapter 23
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Stock
• Many people who made money in the 1920s invested heavily in stock.
• Stock: Ownership in a corporation, divided into shares & represented by a certificate
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Stockholders
• If the company does well, the stockholders get money back from their investments.• Stockholder: Owner of stock
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Speculation
• In the 1920s, people began to speculate on the stock market (where stocks are bought & sold).
• Speculate: People risked their money hoping that prices would rise quickly so they could sell their stock for a quick profit.
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Stock market crash
•Thursday, October 24, 1929: Investors sold 13 million stocks, which dropped prices sharply.
•Friday & Saturday (Oct. 25-26): Bankers bought stocks to balance the stock market.
•Monday (Oct. 28): Prices fell again
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Black Tuesday
• On Tuesday, October 29, 1929, investors sold over 16 million stocks, causing a $26 billion loss.• So much money was
lost that the day became known as “Black Tuesday”.
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Effects of black tuesday
•Many people were left with debts they couldn’t pay.• Banks ran out of
money since they couldn’t collect the money they were owed.
• Factories & stores closed and ¼ of all workers lost their jobs.
• The Great Depression began.
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The great depression
• The Great Depression lasted from 1929 to the beginning of World War II in 1939.
• People roamed from place to place looking for work or built shacks to live in.
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Impact on texas
•The Great Depression spread worldwide, affecting European markets for Texas goods.
•Texas’s crop prices dropped 50% between 1929 & 1933.
•About 13% of Texans had to ask for government help.
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Drought
•In the mid-1930s, a terrible drought hit Texas & other states in the Great Plains.
•This caused the millions of acres of grassland that had been plowed to produce fierce dust storms called “black blizzards”.
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Dust bowl
•Texas, Oklahoma, Kansas, Colorado & New Mexico were affected by the drought & constant dust storms.
•People called this region the “Dust Bowl”.