StockMarket1920s

The stock market is a place where stocks and bonds are traded, which means bought and sold. When becoming involved in the stock market, the best idea is to buy stock and then save it for a long period of time and then eventually sell the stock for a better price than you bought it for. Companies use stock to research better ways to make things, create new products, hire more employees, improve old products and renovate their buildings.

Once you buy stock you become a shareholder of a company. This means when a company’s profits go up, your share in the company then increases, just as when the company is at a loss, so are you.

In the 1920s, the economy was picking up and easy credit and speculation created the boom of the stock market. People were spending more money because loans were easy to get. People were borrowing huge sums of money and earning good wages. Technology was also advancing and people wanted all new products.They were buying cars, washing machines, furniture, radios, and numerous other expensive items.

  

Between 1922 and 1929 the annual gross national profit of the USA increased by 40% and the average income per head increased at 27%.

Many people were able to get rich quick from the stock market. Professional traders were able to manipulate the prices of many stocks. Wall Street was becoming more sophisticated throughout the 1920s, they handled turnover in stocks and bonds greatly and new investment products began to develop such as technological advancements.

The United States was in a good place after World War I. We had a great abundance of goods such as coal, iron, minerals, land, etc. Hire purchase and credit were created which were exactly like loans. This meant anyone could afford expensive things. Advertisements were also introduced which lead to people spending more money, because they saw the product on billboards and signs throughout streets and stores. Henry Ford was a huge impact of the 1920s. He created the affordable car and the assembly line. The assembly line created more products at a faster pace, which meant there were more products available for people to buy.

Although many people prospered from the boom of the 1920s, farmers, black people, immigrants, and old traditional industries did not prosper.

In Gatsby, the stock market is booming. Everyone was all about becoming rich throughout Gatsby. The American Dream is corrupt and materialism prevails over hard work. The parties are fabulous and the people dress to kill. Materialism is shown greatly throughout The Great Gatsby. People were partying and spending money carelessly on many materialistic things. Everyone had a steady income; enjoyed life and no one had a care in the world. Throughout the novel, there are three categories of money, old money, new money and no money. Tom and Daisy represent old money, their wealth and power has been built up in society over years. Gatsby represents the new money. Gatsby made his fortune in the booming 1920s. Old money is associated through George and Myrtle. They were apart of the traditional industries who did not prosper in the booming 20s. 

  

 http://www.youtube.com/watch?v=6_Jkaaz1Xuc

Bibliography

"Explaining Stocks and the Stock Market." CNNMoney. Cable News Network, n.d. Web. 03 Feb. 2014. <http://money.cnn.com/magazines/moneymag/money101/lesson5/index2.htm>.

Fitzgerald, F. S. (1925). The great gatsby. New York, NY: Charles Scribner's Sons

Reams, Karen. "Wall Street in the Roaring Twenties." Voices.yahoo.com. Yahoo Contributor Network, 26 June 2007. Web. 03 Feb. 2014. <http://voices.yahoo.com/wall-street-roaring-twenties-403302.html?cat=3>.

"The Rise and Fall of the American Economy 1910-1929." BBC News. BBC, n.d. Web. 03 Feb. 2014. <http://www.bbc.co.uk/schools/gcsebitesize/history/tch_wjec/usa19101929/2riseandfall7.shtml>.