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The Business Cycle

The Business Cycle. Or, Why our Generation Is Screwed…. STOP!. WANT to Make Stacks of Cash?. OF COURSE YOU DO!. TEAM UP!. The Game. In this simulation you will take part in stock trading. The stocks being offered are from real companies that existed in the 1920 ’ s .

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The Business Cycle

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  1. The Business Cycle Or, Why our Generation Is Screwed…

  2. STOP! WANT to Make Stacks of Cash?

  3. OF COURSE YOU DO!

  4. TEAM UP!

  5. The Game • In this simulation you will take part in stock trading. The stocks being offered are from real companies that existed in the 1920’s. • OBJECTIVE: Your aim as investors is to make as much money (or profit) as possible. To do this, you will need to watch the market prices and buy shares of stock when the price is low and then sell them when the price is high. • Your team has received $5000 to start. • You may invest any amount of money in one company, or you may invest in a combination of companies.

  6. What is a Stock? • A stock (also known as equity) represents a share in the ownership of a company. • When you purchase a company’s stock, you become a part-owner of that company – a stockholder or shareholder. • A stock represents your claim on the company’s assets and profits.

  7. Why Do Companies Sell Stock? • Companies sold stocks (shares) of their company as a way of funding expansion. • Many new businesses in the 1920s did this in order to keep up with high demand for their products. • If you owned a business and needed to make $100,000 to afford expansion you could sell shares to raise the money. If you sold 10,000 shares at $10 a share you now have $100,000.

  8. Some 1920s COMPANIES • Ford Motors • Canada Canners • Winnipeg Electric • Bell Telephone • Canada Cement • Massey Harris • Montreal Power Corporation • Canadian Pacific Railway • Steel Company of Canada • Distillers-Seagrams

  9. INSTRUCTIONS • You have been given $5000 to begin buying stocks. • There are a limited number of stocks for each company. First come first served. • Once stocks are bought, they can only be sold to another team. • You may borrow extra money after the first round. • Money can be borrowed on a 10% margin, meaning you only have to have 10% of the cash needed to buy the stocks. • You may offer more money than the price listed on the Value of Shares sheet. • Stock Broker’s are the only members of the team who can purchase and sell stocks. • All stock sales and purchases must be made through the Stock Market Commissioner. • The Stock Market Commissioner will close each round after a maximum of 7 minutes of trading or when the trading ceases.

  10. TEAM ROLES • STOCK BROKER: Does all of the yelling and negotiating with the other teams. • RECORDER/MATH PERSON: Calculates the value of the stocks and how much the team is able to spend.

  11. TEAM STRATEGY TIME • Take 1 minute to quickly discuss strategy with your team. • Are you going to be aggressive traders? Or play it safe? • Remember the team with the most money at the end of this simulation wins!

  12. Values of Shares in Companies, 1922

  13. Values of Shares in Companies, 1924

  14. Values of Shares in Companies, 1926

  15. Values of Shares in Companies, 1928

  16. Values of Shares in Companies, 1929

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