1. How can shares of a PLC change their value

2. 2010
Deepwater Horizon is an oil drilling
Platform in the gulf of Mexico mining
Millions of barrels of oil a year.
The film starring Mark Whalberg tells a
life story of one the biggest oil spills
Disasters in US history.

3. What impact did this have on the oil company And the value of the company?
By June, oil and tar balls had made landfall on the beaches of Mississippi, Alabama, and Florida. In all, an estimated 1,100 miles (1,770 km) of shoreline were polluted.
BP created a $20 billion compensation fund for those affected by the spill. 
By the next year, the company had lost almost a quarter of its market value and had hemorrhaged over $40 billion in costs associated with cleanup and recovery.

4. What did this mean to BP’s shareholders?
The share price dropped dramatically and this means that the price of each share would drop, which may mean share holders losing money.
Would you sell your shares?
Explain two reasons behind your decisions.

5. Sports Direct – why has the value of their shares gone up and down?
Below minimum wage.
Workers rights were abused.
Loss of customers
The company has also lost more than 17 per cent of its value since the start of the month alone, Sports Direct's share price is down 40 per cent over the year to date, but rose 0.8 per cent this morning.
Conditions at the warehouse in Shirebrook were described as "Victorian" by a select committee of MPs that looked into Sports Direct's treatment of staff after the allegations were published in the media last year.
Would you sell your shares?
Explain two reasons behind your decisions.

6. What are some of the main reasons shares rise or drop?
Oil Prices.
Threat of war.
Politicians e.g. North Korea banning exports.
Human rights – e.g. is the company being fair and lawful.
MAGIC…….

7. If a PLC was making a decision, can you separate the decisions into two categories?
Factors that increase the share value
Factors the lower the share value
Discuss and place these factors into the table above…….
Competition driving customers away.
Expanding the business
Foreign countries buying from you.
Buying out another company
Making redundancies
The lack of money in the UK economy
Beating your competitors.

8. Todays task
Complete your share investment portfolio spending £10000 from last lesson – Learn coombe Dean – Share Game 2016
Create a wordsearch with key words you have learnt of different types of organisations e.g. sharehoders, sole trader, Private Limited company. (Use Doddlelearn to refresh your memory)
Print out and stick the wordsearch into your revision book. (blue)