1. The Stock Market Game

2. Why would someone want to buy stock?
Pair-Share
What is stock?
Why would someone want to buy stock?
Do you think you will speculate in the stock market some day?

3. Stock Market Vocabulary

4. Stock
An instrument that signifies an ownership position in a corporation.
Most stock also provides voting rights, which give shareholders a proportional vote in certain corporate decisions.
Ownership in the company is determined by the number of shares a person owns divided by the total number of shares outstanding.
For example, if a company has 1000 shares of stock outstanding and a person owns 50 of them, then he/she owns 5% of the company.

5. Share Certificate
A legal document issued as proof of ownership in a firm. In the modern stock markets, the 'paper' share is now being replaced by the 'electronic' share.

6. Stock

7. Stockholder A person who owns stock in a corporation
Along with the ownership comes a right to declare dividends and the right to vote on certain company matters, including the board of directors.

8. Broker
The person who works on behalf of a investor in the stock market to buy and sell stock

9. Dividends
Dividends are payments made by a corporation to its shareholder members.
It is the portion of corporate profits paid out to stockholders.

10. Prospectus
a printed statement that describes a business and that is distributed to prospective buyers, investors, or participants

11. Line of Credit A loan of money.
Interest (a percentage of the loan) must be paid on the amount of the loan.
If you are given a 1000 dollar loan at 10% interest, you pay 100 dollars.

12. Buying on Margin
A risky technique involving the purchase of securities with borrowed money, using the shares themselves as collateral.

13. Current Day New York Stock Exchange

14. The Stock Market Game

15. Directions: The Stock Market Game
You have a list of companies in front of you.
Most of the stock companies existed in the 1920’s.
Some became successful, others failed.

16. Directions: The Stock Market Game
Read each prospectus and decide which stocks you want to purchase.

17. Directions: The Stock Market Game
Each student will get a worksheet:
“Stock Record”