Learning Objectives By the end of the lesson you will ….

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Presentation transcript:

Learning Objectives By the end of the lesson you will …. Understand what shares are Understand what dividends are Be able to explain how shareholder value can increase

Dividends Definition – the proportion of profits that is paid to shareholders. The more shares you own, the more dividends you get. Normally paid out twice a year Some profit may be kept back by the company to invest in the future e.g. new machinery.

Shares Shareholders Good Dividend Marks & Spencer's PLC Individuals Marks & Spencer's PLC Share price increases Share Capital OR Insurance Companies & Pension Funds Poor Dividend Share Price goes down

What do the numbers mean?

Activity 2 Shares or Dividends?

Why may the value of shares go up? If the Stock market thinks : The prospects of the company are good The asset value of the business is increasing There is a possibility of a takeover bid The economy on the whole is doing well

Celebdaq http://www.bbc.co.uk/celebdaq/ How does it work? How do you know which celebrity will ‘make money’? Don’t forget the dividends!! At Easter Prize for class Prize for Year 10

Homework Choose 3 FTSE 100 companies Track the share price on the BBC website See handout Lesson 16 Reading the Financial pages

Shares OR Handout for the students to fill in whilst going through the powerpoint