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This Week in Trading History: Ford IPO

This week in trading history saw the IPO of the Ford Motor Company, Zimbabwe released the largest banknote in financial history, and Bill Gates stepped down as CEO of Microsoft...

11th January

The Dow Jones Industrial Average crossed over the 200 mark for the first time since the beginning of the Great Depression.

12th January

The Dow closed over 100 for the first time in history.

Bear Stearns hit a high of $171.51 per share, however this was the last high Bear Stearns would hit. In 2008 the financial crisis hit, and J.P. Morgan bought Bear Stearns for $2 per share.

13th January

The Federal Reserve announced that it would be enacting an “anti-deflation” campaign as well as an easier credit policy. On hearing the news, the Dow rose 6.26%. However, this was a short-lived success for the Dow, already down 75% from it 1929 high, the Dow fell another 50% before bottoming out at 41.22 in July 1932.

Bill Gates steps down as Microsoft’s CEO. Day after the news Microsoft stock’s fell nearly 4%. Steve Ballmer took Gates place as CEO.

The Dow fell 364 points on this day as oil closed below $30 per barrel for the first time in 12 years. The decline in the price of oil spread over 2014 to 2016 and caused in total 64 oil companies to declare bankruptcy.

14th January

The internet bubble reached its peak as the Dow closed at 11,722.98. By October 2020, the bubble had officially burst, and the Dow had dropped nearly 40%.

15th January

Market Watch IPO at $17 per share and closed the day at $97.50 per share, making this a huge one-day gain of 474%. At the time this was the 2nd largest first day gain in history. Intraday shares traded as high at $130 per share and Market Watch was valued at $1.1bn after this day.

16th January

Zimbabwe released the 100,000,000,000,000, or 100 trillion, dollar banknote. This is the largest denomination banknote ever to be issued. By the end of February, the note would be worth just 31 cents in U.S. dollars. The inflation rates in Zimbabwe, by the end of 2008, had reached 89.7 sextillion percent. It wasn’t until April 2009 that the decided to stop printing altogether and start using South African Rand and U.S. dollar.

17th January

Ford IPO at $64.50 per share and closed the day at $70.50, giving Ford a market cap of $660 million. In 2021 Ford’s Net worth was around $35.81bn.

The U.S. aerial bombardment against Iraq began and the Dow rose 4.6% as traders sense a near victory. The Gulf war was won just over a month later, on the 28th February, when Bush declared a ceasefire as Iraq was near collapse.

At 5:46am a 6.9 magnitude earthquake hit Japan, 6,500 people were killed and nearly 10 trillion Yen in damages were caused. Japan’s stock markets were late to react, until three days later the Nikkei dropped over 1,000 points. This caused a ripple effect through the market, including the failure of Barings Bank in March 1995 due to rogue trader Nick Leeson’s losses on Japanese derivative bets