Stocks
Stocks: this may be the first time you've ever learned anything about stocks. Although it may be confusing, and at times seem difficult, we will be NOT be using real money. You can't choose poorly or make a mistake. The important lessons are learning what stocks are, why and when some people decide to "get into the market" and how stocks can earn you money. HAVE FUN! Buy and sell. See what happens!
How can we learn about stocks if we aren't able to buy any?
Objectives:
Students will participate in the
Stock Market Game (username: NJ_8_ ZZ3??) from the end of September until the beginning of December. Students will buy and sell stocks of their choice (traded on the NYSE or NASDAQ), and keep a record of trades on the Google Classroom document.
Students will be able to explain what a stock is and name the 2 largest US stock exchanges.
Students will be able to define and explain the purpose of an IPO (initial public offering).
Students will be able to explain how stock is traded on the secondary market: what is meant by market price?
Students will be able to list two ways profits are made on the stock market. Define dividend and capital gain.
Students will be able to explain what a stock index is and name the 3 indexes used most commonly in the US. How many companies are in the "Dow"?
Students will be able to explain what is meant by a bull vs a bear market.
Students will be able to explain the reason people should diversify their holdings in the stock market. (worksheet)
Students will be able to explain what risk is and give examples of conservative, moderate and speculative investments and investors. (worksheet)
Students will be able to explain how stock is classified: income vs growth; cyclical vs defensive; and blue-chip vs speculative.
Students will be able to explain what factors influence market behavior and give examples of each: company; political; interest rates; market; and non-market risks. (class activity)
Students will be able to calculate: Return on Investment; Dollar cost averaging; Stock Split; and EPS (earnings per share). (worksheets)
Students will be able to identify short term buying techniques vs long-term buying techniques and explain the purpose of long-term techniques such as dollar cost averaging.
Students will be able to read a stock table for a given stock. (such as those on google.finance and/or finance.yahoo)
Students will be able to define insider trading and SEC (securities exchange commission)