1. Unit 2: The Stock Market Lesson 1: What is a stock?

2. Lesson Objective  SWBAT describe how stocks fund corporations, benefit investors and portray the “value” of a business.

3. 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?

4. 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

5. 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

6. 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

7. 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?