Investing

InvestingInvestingInvestingInvestingMini-LessonMini-Lesson

OUTCOME: students will be able OUTCOME: students will be able to identify the to identify the

advantages/disadvantages of advantages/disadvantages of owning stocksowning stocks

OUTCOME: students will be able OUTCOME: students will be able to identify the to identify the

advantages/disadvantages of advantages/disadvantages of owning stocksowning stocks

Before: BrainstormBefore: BrainstormDuring: simulation During: simulation

(shareholders)(shareholders)after: Reading/Short persuasive after: Reading/Short persuasive

essayessay

Before: BrainstormBefore: BrainstormDuring: simulation During: simulation

(shareholders)(shareholders)after: Reading/Short persuasive after: Reading/Short persuasive

essayessay

investinvest

What does it mean to invest?

What are examples of investments?

After what you learned about yourself yesterday, what might you invest in?

What does it mean to invest?

What are examples of investments?

After what you learned about yourself yesterday, what might you invest in?

Equity - ownershipEquity - ownershipEquity - ownershipEquity - ownership

A Piece of StockA Piece of StockA Piece of StockA Piece of Stockownership in a piece of a companyownership in a piece of a company

Going PublicGoing Public

Not a dating status!!!

Privately owned companies sell shares

Hires an investment banker to sell the stock

This sale is called an IPO

These shares can be bought and sold in secondary markets (NASDAQ, New York Stock Exchange, DOW)

Stocks are only sold on ONE of the markets.

Not a dating status!!!

Privately owned companies sell shares

Hires an investment banker to sell the stock

This sale is called an IPO

These shares can be bought and sold in secondary markets (NASDAQ, New York Stock Exchange, DOW)

Stocks are only sold on ONE of the markets.

Groups - householdGroups - household

Each household has INCOME -

payments earned by households for providing resources

Households SAVE some of their income

SAVING is the portion of income not spent on CONSUMPTION (buying things) or TAXES

Households can use some saving to purchase STOCKS

you can purchase stock with money, on MARGIN - or with borrowed money (STOCK MARKET CRASH 1929)

Each household has INCOME -

payments earned by households for providing resources

Households SAVE some of their income

SAVING is the portion of income not spent on CONSUMPTION (buying things) or TAXES

Households can use some saving to purchase STOCKS

you can purchase stock with money, on MARGIN - or with borrowed money (STOCK MARKET CRASH 1929)

earn stocksearn stocks

Answer the questions correctly (as a household) to earn shares of stock in THE STOCK KNOWLEDGE COMPANY

Each correct answer is worth 15 shares of stock

Once you own stocks - you are known

INVESTORS or STOCKHOLDERS or SHAREHOLDERS

Answer the questions correctly (as a household) to earn shares of stock in THE STOCK KNOWLEDGE COMPANY

Each correct answer is worth 15 shares of stock

Once you own stocks - you are known

INVESTORS or STOCKHOLDERS or SHAREHOLDERS

stock questionsstock questions

Stocks represent ownership in a corporation.

People who invest in stocks cannot loser their money.

Mark bought 100 shares of Intel stock. Each share sold for $35.50. If no fees were involved, Mark paid $3,550 for the shares.

The price people pay for a stock is called a dividend.

The closing price for a share of Wal-Mart stock was $37.25. This means that the price of the share was $37 and one-quarter of a dollar. One quarter of a dollar is $0.20.

Stocks represent ownership in a corporation.

People who invest in stocks cannot loser their money.

Mark bought 100 shares of Intel stock. Each share sold for $35.50. If no fees were involved, Mark paid $3,550 for the shares.

The price people pay for a stock is called a dividend.

The closing price for a share of Wal-Mart stock was $37.25. This means that the price of the share was $37 and one-quarter of a dollar. One quarter of a dollar is $0.20.

stock questionsstock questions

People who own stocks are guaranteed a return on the money they have invested in stocks.

The only way stockholders make money is through dividend payments while they own the stock.

One way stockholders make money is by selling their stock for more money than they paid for it.

Stockholders can reduce the risk on their stock investment by diversifying their portfolios.

The New York Stock Exchange is the only place where people can buy and sell stocks.

People who own stocks are guaranteed a return on the money they have invested in stocks.

The only way stockholders make money is through dividend payments while they own the stock.

One way stockholders make money is by selling their stock for more money than they paid for it.

Stockholders can reduce the risk on their stock investment by diversifying their portfolios.

The New York Stock Exchange is the only place where people can buy and sell stocks.

MRS. K. JOHNSON’SMRS. K. JOHNSON’S

QuestionsQuestions

If your household answered all the questions correctly, how many shares of stock would you own?

How many shares does your group own?

Of the 150 shares your group could have purchased, what percent does your group in fact own?

If your household answered all the questions correctly, how many shares of stock would you own?

How many shares does your group own?

Of the 150 shares your group could have purchased, what percent does your group in fact own?

DividendsDividends

DIVIDENDS can be earned on some stock (such as these)

if the company makes a profit - they may pay DIVIDENDS to their STOCKHOLDERS

DIVIDENDS for this stock is candy

1 share = 1/5 a piece of candy

What are your group’s earned DIVIDENDS?

DIVIDENDS can be earned on some stock (such as these)

if the company makes a profit - they may pay DIVIDENDS to their STOCKHOLDERS

DIVIDENDS for this stock is candy

1 share = 1/5 a piece of candy

What are your group’s earned DIVIDENDS?

REAL LIFEREAL LIFE

How was this simulation different than REAL LIFE?How was this simulation different than REAL LIFE?

Overnight ReadingOvernight Reading

Feb. 2013 New York Times Article

Mar. 2012 Forbes Articles

Investing in Stocks to Get More Return

Feb. 2013 New York Times Article

Mar. 2012 Forbes Articles

Investing in Stocks to Get More Return