Unit 2: The Stock Market Lesson 1: What is a stock?
Lesson Objective SWBAT describe how stocks fund corporations, benefit investors and portray the “value” of a business.
WOTD/Initial Activity Equity The value of the shares issued by a company. The quality of being fair and impartial. Initial Activity Base your answer on your own opinion experience. Why do stock prices fluctuate everyday? How do you think the four core principals of economics discussed in unit 1 effect the price of stocks?
Background Knowledge: Quickwrite How do investors profit from investing in the stock market? Develop a list of ways to profit from investing in the next 2 minutes. Chart & Discuss
Activity 1: Stocks 101 Jigsaw Focus Question: Where and how are stocks traded? Read Initial Public Offering (IPO) Read Capital Gains & Dividends Read Risk vs. Reward Read Stock Exchanges For your reading, summarize the central idea for your term. Briefly describe what your term has to do with stocks. Record responses on board & copy other group’s responses. Share Out
Activity 2: Supply and Demand in Action Focus Question: How can an investor determine the value of a stock based on its financial ratios? Goal: To assess the investment potential of a share of stock. Review financial ratios and equations Discuss definitions Apply ratios and equations to answering mathematical questions concerning the investment potential of Apple, Inc. & Google, Inc. Share Out
Summary Discussion How can an investor profit from investing in the stock market? How can an investor begin to differentiate between a good and bad investment?