The Stock Market

Buying, Selling, and Trading parts of businesses you own for cash.

UEQ and LEQ

• UEQ: How can JA Finance Park teaching you to use financial institutions to your benefit?

• LEQ: How can investing money into the stock market be beneficial to your financial future but at the same time risky?

Vocabulary• Stock• Bond• Mutual Fund• Wall Street• Dow Jones• S&P 500• NasDaq• Rate of return• Taxable/Tax-Deferred Investment

Stock Market: Nuts and Bolts

• Watch this short clip, while watching write down some important facts that you hear.

• The Stock Market

• Watch another very short clip, answer this, “why invest your money into buying stock?”

• New York Stock Exchange

Stock Market• Summarize the Stock Market– Go To Google, type in “The Stock Market,” click on

the site titled The Stock Market (should say library.thinkquest as the site)

– Working with a partner read over:• The Beginning• How It Works• Rules• Crashes

• Summarize each section using markers on the poster paper I have given you, write down the most important facts, dates, people, ideas.

The Stock Market

• Center of the U.S. and World economies.• Location where businesses have stock bought

and sold daily.– Estimated Value of World Markets: $36.6 trillion

• Allow for all individuals to own parts of different companies, but money is required to purchase and own stock.

Stock Exchange (Stock Market)

New York Stock Exchange

Stock• Bought and sold daily.• Parts of companies that people buy for

money.– Fast way for businesses to make money– Fast way for people to make money

Two Ways to Look At It: If Business is Stock will be Your Money isIf Business is Stock will be Your Money is

Stock

Stock Market/Stock Cartoon

What is the Message here?

A Delicate Balance or Disaster

Graphing Stock

• The easiest way to track stock besides, watching its dollar value increase or decrease is to graph the stock.– Student Workbook Page 33• Read over the directions and using the figures in the

chart provided, graph each of the three stocks.• Hint: to see which stock is which draw the graph line

for each stock differently and in a different color.

– Discussion of chart

Graphing Stock

How To Read Stock/Stock Facts

• Look Over: “How To Read Stock Listings”– Discussion of Listings

• Complete: “How Do I Read Stock Quotations?”– Discussion of Answers

Stock Value Assignment• You are now going to pick 9 stocks and using

the laptops determine 9 companies you wish to buy stock in, how much the stock is worth currently, and how much money you would have invested in that stock.– Turn to page 36 in your workbooks– Using the stapled packet I have given you pick

nine companies, go to Google and type in “company name” followed by “ticker symbol”

– Use the information provided and the calculator to figure out the rest.

Exit Ticket

• After looking at stocks, the stock market, how to read stock, and how to determine stock value, using your own opinion, how difficult do you think it is to buy/sell stock and keep track of stock that you own?

• Also, explain whether or not you play the stock market when you get older, and provide and advantage and disadvantage of doing so.