Extension: Setting Stock Prices and Trading Stock

(Suggested for Sessions One and Two)

In this 15-minute extension activity, students learn why public companies sell stock, what happens during a company’s initial public offering, and how stocks are traded on a stock exchange.

Objectives:

• Identify how a stock’s price is set during a company’s initial public offering.

• Identify the steps in the process for buying and selling stocks on a stock exchange.