Chapter 25 sec. 1 Guided Reading

1. The Stock Market Crashes

2. For almost all of the Roaring Twenties, the stock market was a ___ market, or one with rising stock values. For example, you could have bought shares in the Radio Corporation of America for ___ each at the beginning of  1928. You could have sold them a year later for ___ each.”

• bus, $85, $549

• bull, $80, $549

• bull, $85, $549

• bull, $85, $545

The Stock Market Crashes 

“The chance to make huge ___ from small investments encouraged many people to buy ___. Some who could not afford the stocks full price began ---- purchasing stocks on ___, or with ___ money.”

• profits, stocks, buying-on -margin, credit, borrowed

• proffer, stocks, buying-on -margin, credit, borrowed

• profits, sticks, buying-on -margin, credit, borrowed

• profits, stocks, buying-and-margin, credit, borrowed

The Stock Market Crashes 

“These stockholders planned to ___ the stock at a ___ price, pay back the ___, and keep what remained as ___.”

• sell, higher, loan, profit

• sell, higher, lien, profit

• sell, hillier, loan, profit

• sale, higher, loan, profit

1. The Stock Market Crashes 

2. “But this ___ only worked if stock values went ___. Few considered what would happen if the ___ market turned into a ___ market, or one with ___ stock prices.”

• plane, up, bull, bear, declining,

• plan, up, bull, bear, declaring,

• plan, up, bear, bull, declining,

• plan, up, bull, bear, declining,

1. The Stock Market Crashes 

2. “Stock prices___ in the late __ of 1929. Then prices started to ___.”

• peeped, somber, drop

• peaked, summer, drop

• peaked, somber, droop

• peaked, sooner, drop

1. The Stock Market Crashes 

2. On Tuesday, October 29 (1929) --- a day that became known as ___ --- the stock market ___. So many people wanted to ___ their stock, and so few wanted to ___, that stock prices ___.”

• Black Friday, crashed, sell, buy, collapsed

• Black Tuesday, crashed, sell, buy, collided

• Black Tuesday, crushed, sell, buy, collapsed

• Black Tuesday, crashed, sell, buy, collapsed

The Stock Market Crashes

In September 1929 the total value of all ___ was $87 billion. Less than ___ months later, more than $30 billion in stock value had d___. ___ who had bought stocks on margin became stuck with large ___.

• stocks, two, disappeared, investors, depths

• stocks, two, disappointed, investors, debts

• stocks, too, disappeared, investors, debts

• stocks, two, disappeared, investors, debts

The Economy Collapses

President Herbert Hoover tried to ___ public fears by assuring Americans that the economy

was still ___. “The fundamental ___ of the country . . . is on a sound and ___ basis,” he said. But this was just the beginning of more than ___ years of economic ___ times.

• calm, strange, business, prosperous, ten, hard

• calm, strong, business, preposterous, ten, hard

• calm, strong, business, prosperous, ten, hard

• call, strong, business, prosperous, ten, hard

The Banking Crisis

One ___ effect of the stock market ___ was a ___ crisis. Banks had ___ invested in the stock market, so they lost heavily when the ___ crashed.

• immediate, crash, banking, heavily, market

• intermediate, crash, banking, heavily, market

• immediate, crush, banking, heavily, market

• immediate, crash, baking, heavily, market

The Banking Crisis

Now those customers were ___ to pay back their ___. Some banks ___ out of business. People who had ___ their life ___ in those banks lost everything.

• unable, loans, went, deposited, servings

• unable, loans, went, deposited, savings

• unable, loins, want, deposited, savings

• unable, loans, went, reposited, s