4 minute read

Stock Market Review

Questions & Agenda: (3 minutes) Agenda: (3 minutes)

Talk through the guiding question and agenda as a whole group.

Guiding Question: What does it mean to purchase stock in a company?

Students should be aware of what they will be learning about today and what they can expect from the session.

I know an accountant who is always tired. Her job is very taxing.

Introduction to Investing & the Stock Market: (5 minutes)

Quick Write: Provide students with 30 seconds to write down anything that comes to mind when they hear the word “investing.”

Introduce Key Term: Investing

Read through the definition together and discuss when you might choose to invest your money instead of holding it in savings.

Example: When you want to grow your money for a longer-term goal.

Ask students…

• What are the positives of investing? • What are potential negatives?

Discussion Topics:

• What is the difference between saving and investing? • What are risks and rewards in investing? • What does it mean to have your money do the work for you? • What are some companies students would want to invest in?

Provide students with 30-60 seconds to brainstorm a company they would want to invest their money in.

Instruct students to write what company they would want to invest their money in and why in their workbook.

After 30-60 seconds of brainstorming time, bring the whole group together to share. Write down the reasons their classmates invested in other companies.

Quick Write: Provide students with 30 seconds to write down why their classmates decided to invest in a company. Be sure to point out the main decision-making criteria students are listing.

Tip: Volunteers may choose to share their own first investment!

Introduce the Key Terms: Stock, Shareholder, IPO

Read through the definition together and discuss why companies sell stock in their company.

Examples:

• Fund new products or product lines

• Invest in growth

• Expand operations

• Pay off debt

Stock Market Review (14 minutes)

In order to develop a deeper understanding of investing, we will be using Yahoo! Finance to follow the prices of a stock and an ETF over the course of the fall sessions.

The students will all create their own account so they can monitor companies for their company stock analysis.

Please note that for some students this may be the first time learning about the stock market, while for others they may be familiar with the general concept of stocks.

Be cautious as you introduce stocks and pause to check student understanding.

Example of method to quickly check student understanding during the lesson: Fist to 5

EXPLAIN:

If you bought one stock of Company A, and Company A has 10 shares, then you would own 1/10th of the company or 10%.

HAVE THEM TRY:

If you bought 300 shares of Company B and they have 100,000 shares in total. How much of the company would you own?

Answer: 300/100,000 = .3%

Provide students examples of stock exchanges and briefly discuss:

The main stock exchanges in the U.S. are:

The New York Stock Exchange (NYSE)—which has a physical trading floor but also handles electronic orders The Nasdaq—which is an all-electronic exchange Global stock exchanges: There are 60 major stock markets around the world of which the NYSE is the largest. Some of the other major players include:

Tokyo Stock Exchange  Japan London Stock Exchange  United Kingdom Hong Kong Stock Exchange  Hong Kong Shanghai Stock Exchange  China Bombay Stock Exchange  India Frankfurt Stock Exchange  Germany Euronext Paris  France

Throughout the course of the fall sessions, we are going to track Apple (AAPL).

Have Yahoo! Finance pulled up on the overhead screen or projected on the board. If able, students can also pull up Yahoo! Finance on their own devices. The link to Yahoo! Finance can be found in the resources section of the RTSWS App.

https://finance.yahoo.com/

With Yahoo! Finance pulled up, review and record as a whole group the…

• Company name • Ticker (Key term) • Today’s price & date • How much the company is up or down since market open • The 6 month movement of the stock • Point out the “Sustainability” tab

Show students how on Yahoo! Finance under “Chart,” you can view the history of a company stock by different date ranges.

Today students will be sketching the 6 month chart of Apple (AAPL).

Discuss out loud what should go on the x-axis (time frame) and what should go on the y-axis (stock price).

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