1. 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

2. 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.

3. 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

4. What do the numbers mean?

5. Activity 2
Shares or Dividends?

6. 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

7. 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

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

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