From Boom to Bust. THE ECONOMY ON THE UPSWING. By the middle of the 1920s, the economy turned around in Canada; Industries were growing, and foreign investment caused business to pick up;
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Parent Company (outside Canada)
Top management jobs
Foreign investment money
Research and development
Canadian Branch Plant (provides for Canada)
Jobs for Canadians
Products made in Canada
Taxes for Canada
Increasing Americanization of the Canadian economy
Many important decisions about Canadian branches were made in the U.S.
Top management jobs were frequently held by Americans
Profits made by the branch plants were sent back to the U.S.
Fear of a complete economic takeover by the U.S.
Too much American control in Canadian economy
The economic upswing in the mid-1920s gave many Canadians a new sense of confidence
What is a STOCK MARKET?
Why do people by SHARES (also called STOCKS) in a company?
They hope that the success of the business will cause the value of each share to rise. Then they can sell the stocks for a profit.
If the company is doing well, shareholders may receive a portion of the company’s profits. This payment is called a DIVIDEND.
Of course there are risks involved – if the company does poorly, there are no dividends, and the value of the shares will probably fall as well.