Participants explore how stocks are traded, how stock prices are affected by current events, and how investors make investment decisions and diversify their portfolios. They are introduced to stock indexes/averages and stock tables, and they practice buying, selling, or holding stocks from their fictitious stock portfolio.
Objectives for this session:
Determine ways to assess the risks in investing.
Discuss the impact that economic events have on stock prices and supply and demand.
Analyze the data in a stock table.
Practice following the process for buying and selling stocks on the stock market
risk the probability of making a profit or losing money on an investment
stock index/average a group of companies in different industries whose performance represents market trends and is tracked to gauge the movement of the market
market capitalization the number derived from multiplying the total number of a company’s shares by the price per share, which reveals the company’s worth on the open market
blue-chip company a nationally recognized and well-established company with a long record of stable and reliable growth
mutual fund a professionally managed collection of stocks, bonds, and other assets stock table a table of information that investors use that shows the current price of a stock and the lowest and highest price paid for it over the previous 52 weeks
dividend a percentage of profits that are paid periodically to stockholders
yield the rate of return on a stockholder’s investment, derived by dividing the annual dividend by the current price of the stock price-to-earnings
(P/E) ratio the number derived from dividing a company’s current stock price by its earnings per share
You will need the following materials for this session:
Print and distribute table tents. Instruct students to write their names in large letters.
Follow the step-by-step instructions to facilitate a classroom or remote session. We recommend opening the instructions on a secondary device so you can use your computer to project.
Note Use this link to play the video on Slide 13: https://www.youtube.com/watch?v=JUtes-k-VX4
Project this presentation as you lead the session. The presentation includes important concepts, key terms, and opportunities to apply learning. We recommend opening the presentation on your computer to project. Practice navigating the presentation before the session begins. Some onscreen presentations include interactive features, so familiarize yourself with the features. Play any videos, and check all links that are included. Ask your teacher to check the presentation in the classroom to ensure the settings at the school are compatible and change the browser or adjust security settings if needed, prior to the start of the program.
Share a digital copy of this document, pages 21-26, with students. They can type in the document and save their work. Activity pages can also be printed.