STOCK MARKET PROJECT



MONEY TO BURN

The Stock Market Project

US HISTORY: THORNE

OBJECTIVE OF THIS PROJECT: to understand how the stock market crash of 1929 affected the United States and the world and how another one in this century could affect all of us. In addition:

➢ Students will be able to recognize and use terms related to market activities in both 1929 and now

➢ Students will be able to use research tools on the Web to make an informed decision in developing their own stock portfolio

➢ students will be able to track and manage their own portfolio of stocks

BASIS OF THE PROJECT: You just inherited $15,000 with the stipulation that it must be invested in the stock market. Your goal is to make as much money as possible with your investment. However, there are some restrictions on your investment:

➢ You may invest it ONLY in stocks listed on the New York Stock Exchange

➢ You must invest it in exactly 4 stocks, at least 2 of which were traded on the NYSE in 1929 when “Black Tuesday” occurred

➢ You will track the progress of your investments for approximately one month, taking readings of their progress at least twice a week

➢ The stocks that you buy must cost at least $5.00 per share and you must purchase at least 4 shares of each of your 4 chosen stocks

➢ The person who earns the most money with his/her investment will receive an automatic 100% on this project

PARTS OF THE PROJECT:

1. Research stocks that were active on the NYSE in 1929. Feb 15-17

2. Research the NYSE. Feb 15-23

3. Research how the stock market “was” before the crash of 1929 and how the stock market “is different” now. Feb 27

4. Talk to your parents about investments and the stock market. If they (or their friends) have any good investment tips, use them. Feb 17-22

5. Decide how to apportion your $15,000 among your 4 stock picks

6. Make your initial investment on Feb 23, fill out your Portfolio spread sheet (see attached form #2 and giving me a “hard copy” of your initial investments

7. Track you stocks’ progress over the next month

ITEMS THAT YOU WILL TURN IN FOR A GRADE FOR THIS PROJECT

1. Due, Feb 23: A one-page typewritten report on the factors leading to the crash of 1929.

2. Due, March 28: A spreadsheet and a line graph (with at least two readings per week) of the progress of your stocks from February 23 to March 28

3. Due, Feb 29 A one-page typewritten report of one of the companies you invested in: what is its main business, how much does it make a year, where are its main markets and an analysis WOULD YOU INVEST IN THIS COMPANY IF THIS WERE YOUR OWN MONEY

4. Due, Feb 29: An essay on the problems that existed in 1929 and problems that you believe exist now (they can be the same problems or different ones) with a prediction of whether the “crash” can/will happen again

5. Due, Feb 29: A typewritten definition sheet which includes a sentence, definition and example of each of the following economic terms

➢ buying on margin

➢ price supports

➢ bull market

➢ bear market

➢ speculation

➢ credit

➢ Dow Jones Industrial Average

➢ supply and demand

THIS PROJECT WILL COUNT AS 2 chapter tests

Form #1: The Definition Sheet

Go to Microsoft Word first line of icons. Select the grid that says “insert a table”. Insert a table that is 9 columns by 4 rows. It should look like this when you first start working on it. Be sure to save this to your H-drive and your email address

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…………………..after you begin to fill it in it will start to look like this

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|Word to be defined |Definition |Sentence using the word |Example from history |

| |When a person doesn’t pay full | | |

|Buying on margin |price for the stock he buys, he | | |

| |pays only a small percent and | | |

| |promises to pay the rest when the | | |

| |stock rises in value | | |

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|Price supports | | | |

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Form #2: Your stock spreadsheet

Go again to the Microsoft Word line of icons to the “insert a table” icon--or if you’re good with Excel, go there. Your portfolio needs a table that is at least 6 columns by 8 rows. You can dress up the top of it as shown, but the basic portfolio table should look something like this.

[pic]

|Stock |Stock |Base |Number |Base |Selling |Selling |Gain/ |

|Symbol |Name |Price |Shares |Value |Price |Value |(Loss) |

| | | | | | | | |

|MCD |Mc Donald’s Corp |$99.55 |4 |$398.20 | | | |

| | | | | | | | |

|KO |Coca-Cola Company (The) |$68.90 |4 |$275.60 | | | |

| |Common | | | | | | |

| |Your other stock | | | | | | |

| |Your other stock | | | | | | |

|TOTAL | | | |TOTAL | | | |

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