Module 8 Part 1

Question 1

the New York Stock Exchange lost 11 percent of its value on October 24, 1929; this was the first warning sign for American investors.

Answer 1

Black Thursday

Question 2

: October 29, 1929, when a mass panic caused a crash in the stock market and stockholders divested over sixteen million shares, causing the overall value of the stock market to drop precipitously

Answer 2

Black Tuesday

Question 3

: businesses that facilitate transactions such as the buying and selling of stocks on behalf of their clients. In return, they charge a brokerage commission.

Answer 3

brokerage firms

Question 4

borrowing money from a broker in order to purchase stock. Think of it as a loan from your brokerage; margin trading allows you to buy more stock than you’d be able to normally.

Answer 4

(buying)on margin

Question 5

: the practice of investing in risky financial opportunities in the hopes of a fast payout due to market fluctuations

Answer 5

speculation

Question 6

: the method used to transmit stock prices over telegraph lines using a paper strip that ran the stock symbols and their prices through a machine that made a ticker sound

Answer 6

ticker tape