It is interesting how many people failed to see the

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Unformatted text preview: the late 1920s. Gone were the good times of the Roaring Twenties; a dark economic cloud seemed to descend. It is interesting how many people failed to see the dark economic cloud on the horizon. Irving Fisher, perhaps the best-known American economist of the day, said just a week before the crash, “Stock prices have reached what looks like a permanently high plateau. I expect to see the stock market a good deal higher than it is today within a few months.” Fisher ended up losing a fortune in the stock market crash. Other people who did not see the crash coming were Myron Forbes, who was president of Pierce Arrow Motor Company, and E. H. H. Simmons, president of the New York Stock Exchange. Also, Winston Churchill, who until earlier that year had served for five years as the chancellor of the exchequer, an important financial position in Great Britain, was in America just a few weeks before the crash and had written to his wife telling her how well they were doing in the stock market. On October 24, 1929, when word got out that the stock market was crashing, thousands of people gathered on Wall Street to witness events. One of those people, Winston Churchill (who later became prime minister of Great Britain in 1940) watched from the visitors’ gallery of the New York Stock Exchange as his fortune disappeared on the trading floor below. THINK ABOUT IT Predicting stock market movements is often difficult. Why do you think it is difficult? Section 1 Stocks 435 16 (428-459) EMC Chap 16 EXHIBIT 16-3 11/18/05 9:33 AM Page 436 Translating Financial Talk Translating Financial Talk after the bell air pocket stock Bo Derek big board bull and bear markets casino finance deer market eat well, sleep well falling knife Goldilocks economy lemon love money Nervous Nellie sandwich generation Santa Claus rally short selling war babies Refers to the time after the bell sounds and the stock market is closed until the next trading day. A stock that plunges fast and furiously, much like an airplane that hits an air pocket. A slang term used to ref...
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This document was uploaded on 01/16/2014.

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