1. SUCCESSFUL INVESTOR By Greg Fisher California Academy of Math & Science

2. © 2008 Greg Fisher, California Academy of Math and Science, Carson, California 5 Reasons for Doing It: The content covers many of the state economic content standards. Students gain firsthand knowledge of entrepreneurship. Students discover in depth the world of financial investments. It is real world, as students transcend their classroom and go into their community and beyond. Economics comes alive.

3. © 2008 Greg Fisher, California Academy of Math and Science, Carson, California Economic Content Areas  Market Economy  Personal Finance  Financial Markets  Investment Process  Entrepreneurship  Capital Formation Concepts  Microeconomics b usiness organizations, opportunity costs, marginal analysis, market pricing, market structures, cost analysis, supply/demand  Macroeconomics i nvestment, savings, stock market, inflation, unemployment, business cycle, capacity output, economic growth, economic indicators, venture capital, business plan, investment portfolio, liquidity

4. © 2008 Greg Fisher, California Academy of Math and Science, Carson, California Overview of the Project 1. Questions on Investments with Individual Portfolio 2. Time to Invest (Stock Market) 3. Entrepreneurship Time 4. The Business Convention 5. Debriefing

5. © 2008 Greg Fisher, California Academy of Math and Science, Carson, California Investment Questions & Individual Investment Portfolio Students are expected to gain information on a wide range of investment options. Students acquire knowledge through individual and group research. Students synthesize information that culmi- nates in an individual investment portfolio. Teacher uses lectures, Microsoft PowerPoint pre- sentations, hand- outs and activities, computer lab, and guest speakers to organize and present content. Teacher demon- strates how to create an invest- ment portfolio through explana- tion and examples.

6. © 2008 Greg Fisher, California Academy of Math and Science, Carson, California Categories of Investment Questions Business Cycle Investment Objectives Portfolio Mutual Funds Compounding Money Annuity Stock Market Bonds Money Market Funds International & Global Mutual Funds

7. © 2008 Greg Fisher, California Academy of Math and Science, Carson, California Risk Management Performance Benchmark Beta Volatility Return/Risk Ratio > VAR (Value at Risk) Hedging Single-Trade Risk Management Portfolio Risk Management

8. © 2008 Greg Fisher, California Academy of Math and Science, Carson, California Different types of investments have different levels of risk and return potential.

9. © 2008 Greg Fisher, California Academy of Math and Science, Carson, California Individual Investment Portfolio OBJECTIVES (pie chart & description) TIME & RISK TOLERANCE TYPES OF INVESTMENTS (pie chart & description) Growth Growth and Income Current Income & Inflation Protection I’ll need my investment in 10 years or more 5 to 10 years 5 years or less Equity Balanced (stocks and bonds) Bonds Money market Fixed accounts The risk level will be Conservative Moderate Aggressive

10. © 2008 Greg Fisher, California Academy of Math and Science, Carson, California TIME TO INVEST

11. © 2008 Greg Fisher, California Academy of Math and Science, Carson, California STOCK MARKET SIMULATION Step 1 : Students are introduced to the stock market through various activities:  Read articles “What Is a Stock?”  Review the steps in the execution of a trade using a flow chart  Computer-lab activity Team Scavenger Hunt  Wall Street Journal class set on how to read stocks  Video How the Stock Market Works  Field trip to local mall to research familiar companies  Microsoft PowerPoint presentation on the stock market

12. © 2008 Greg Fisher, California Academy of Math and Science, Carson, California Step 2: Students are given $100,000 and asked to invest it in the following stock markets:  New York Stock Exchange  American Stock Exchange  Nasdaq All students buy 4 or 5 stocks on the same day and fill out. Teacher selects stocks randomly (using darts). Step 3: Students use a Stock Market Tracking Sheet to track their stocks. Step 4: All students dump (sell) their stocks on the same day (after a 3- or 4-month period). Winner is determined by seeing who has generated the most profit beyond the original $100,000.

13. © 2008 Greg Fisher, California Academy of Math and Science, Carson, California Activities for Stock Market Simulation Readings Flow Chart of a Trade Wall Street Journal Video How the Stock Market Works Field Trip to a Mall and Pacific Stock Exchange Computer-Lab Scavenger Hunt Microsoft PowerPoint Presentation

14. © 2008 Greg Fisher, California Academy of Math and Science, Carson, California The Simulation Students create a diversified stock market portfolio and track their stocks once a week for the duration of the simulation. The teacher brings in a dart and a newspaper showing stocks and selects his or her portfolio by throwing the dart at the paper.

15. © 2008 Greg Fisher, California Academy of Math and Science, Carson, California Stock Charts Line Chart Bar Chart

16. © 2008 Greg Fisher, California Academy of Math and Science, Carson, California Stock Charts, continued Candlestick Chart Reference Charts