What are stocks? They are units of ownership in a company.

How do you get a stock? Investors choose from many companies that sell goods, like clothing and sports equipment. When people buy and sell stock, they are trading.

What is an investor?  A person who uses money to buy or make something that will make more money.

What is a stock exchange? (1) A place where stocks, bonds, or other securities are bought and sold. (2) The business transacted at a stock exchange. (3) The prices offered for stocks and bonds in general: a rising stock market.

What happens if the stock market crashes?

Beginning in the fall of 1929 stock prices began to drop. Some investors began to sell their stock before the prices dropped any further.

Other people then began to sell their stocks.  Suddenly there were many people selling stocks, but few buyers. That caused stock prices to drop sharply, and soon panicked stockholders. They hurried to sell their stocks.

On Thursday October 24, people began selling their stocks at a very fast rate. Stocks were selling so fast, prices were dropping so quickly that the ticker-the machine whose ticker tape that tells the prices of stocks-ran a hour behind, then two hours, and then three and four.

The same day, a group of wealthy bankers tried to stop stock prices from dropping any lower. They brought up large amounts of stocks in several important companies, such as United States steel. Despite their efforts, almost thirteen million shares of stock were sold on October 24 and stock prices continue to drop.  Eventually, stocks were worth nothing at all.  This is what happens if that stock market crashes.  Many people were hurt economically during this time.  It also weakens the economy of the country when this happens.

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