LESSON FOCUS: The stock market

Size: px

Start display at page:

Download "LESSON FOCUS: The stock market"

Victor Cameron
8 years ago
Views:

1 LESSON FOCUS: The stock market Key stage Key concepts Key processes Range and content Curriculum opportunities KS4 1.1a, 1.1b, 1.1c, 1.2a, 1.2c, 1.3b, 1.3c 2.1a, 2.1c, 2.2a, 2.2b, 2.2c, 2.3a, 2.3c 3a, 3d, 3e, 3f, 3i, 3k 4a, 4b, 4c, 4g, 4h, 4i, 4j PLTS: independent enquirers, creative thinkers, reflective learners, team workers, self managers and effective participators FUNCTIONAL SKILLS: literacy, numeracy, discussion and role-play skills RESOURCES: OBJECTIVES: Resource A PowerPoint Resource B Companies Resource C Shares lists Resource D Money sheets I will understand what a stock market is. I will identify what caused the downturn in the American Stock Market. OUTCOMES: I will explain what a stock market is. I will identify what caused the downturn in the ASM. I will create a classroom stock market. Overview Students will explore what happened in the recent American Stock Market decline. They will use creative and numeracy skills to create a classroom stock market and experience the highs and lows of trading on the market. Students will then identify why stock markets are so important to the economy of a country. Keywords economy, dividends, fiscal responsibility, money, recession, reward, risk, shares, social responsibility, stock market Page 1 of 6

literacy, numeracy, discussion and role-play skills RESOURCES: OBJECTIVES: Resource A PowerPoint Resource B Companies Resource C Shares lists Resource D Money sheets I will understand what a stock

2 Introduction (5 minutes) Share objectives and outcomes. Starter (10 minutes) Resources: A, B Instructions: Use Resource A (the PowerPoint) to explain how stock markets work (slides 5 and 6). Explain to students how the classroom stock market works (slide 7). Appoint five traders to sell the shares. Read about the five companies on Resource B (Companies) or slides Main (35 minutes) Resources: A, B, C, D Instructions: The instructions for the task are on slide 13. Students have to go to the traders to buy shares. Some of the traders will be much busier than others. The traders use Resource C (Shares sold) to write down the names of the students buying the shares, how much money they gave them and how many shares they got in return. The buyers use Resource D (Money sheets) to write down the number of shares they bought in each company (the traders should initial their sheets) and how much they paid. After ten minutes, when everyone has bought their shares, start to work through slides which introduce highs and lows in the market. After each slide, give students time to calculate their gains and losses. The aim is to show that spreading your money/shares out a little can increase the dividends paid and that investing in safe options doesn t always work. Finally, ask students to calculate their earnings and see who made the most (slide 19). A prize for the winner might be appropriate. Use slides to explain the difficulties experienced by the American Stock Market and their impact on the USA and the rest of the world. Ask students to take notes if you feel it is appropriate Page 2 of 6

Main (35 minutes) Resources: A, B, C, D Instructions: The instructions for the task are on slide 13. Students have to go to the traders to buy shares.

3 Plenary (10 minutes) Resources: A Instructions: Hold a silent debate (slide 29), putting the following questions to students: Do you feel the bankers that run the stock market a have social responsibility towards ordinary people? What signs do you see that the UK has been in recession? How has the recession affected you personally? Do you think the stock markets should be allowed to use public money to buy stocks and shares? Write these questions on large pieces of paper and stick them around the room. Ask students to walk around the room and write their ideas on to the pieces of paper. Keep these pieces of paper for use in the lesson Recession in the UK. Attainment Level 1 Level 2 Level 3 Level 4 Level 5 Level 6 Level 7 Level 8 Exceptional performance I can understand what a stock market is. I can understand one reason why the stock markets are so important to the world economy. I can understand what a share is. I can explain the difference between a share and a dividend. I can identify how people might be affected by the stock markets. I can take part successfully in a debate and role play. I can explain why stock market s can cause economic issues coherently. I can describe how banker s influence society as well as the economy. Taking a leadership role in the creating and leading our classroom stock market Page 3 of 6

Do you think the stock markets should be allowed to use public money to buy stocks and shares? Write these questions on large pieces of paper and stick them around the room.

4 RESOURCE B Companies Russian Football Federation This company runs football leagues in Russia. It has been awarded a contract for running all the football matches in Russia for the World Cup. Its shares are 25p each. Fauva Cars This is a French sports cars manufacturer. It has recently had great success at the World Car Show with an experimental flying car. Its shares are 50p each. Choco PLC Choco PLC is chocolate manufacturer. It is based in the UK but gets its raw ingredients from 14 different countries. It is very popular in England and France. Its shares are 75p each. GP Oil GP Oil is an international company with many bases. It specialises in oil and other non-renewable fuels. Its shares are 1 each. Royal Bank of Oberrion This company is the national bank of Oberrion. It not only lends to private people in their home country but also to countries around the world. Its shares are 1 each Page 4 of 6

Choco PLC Choco PLC is chocolate manufacturer. It is based in the UK but gets its raw ingredients from 14 different countries. It is very popular in England and France. Its shares are 75p each.

5 RESOURCE C Shares sold Company name: Opening price: You can only sell a total of 100 shares to buyers. Name of buyer Number of shares Amount paid Page 5 of 6

6 RESOURCE D Money sheets Name: Value: 10 You have 10 to spend on shares in your classroom stock market. The object is to make money. Use the table below to keep track of your gains and losses. Name of company No. of shares bought (trader to initial) Money spent Money lost Money gained Total at the end of the task Final total: Name: Value: 10 You have 10 to spend on shares in your classroom stock market. The object is to make money. Use the table below to keep track of your gains and losses. Name of company No. of shares bought (trader to initial) Money spent Money lost Money gained Total at the end of the task Final total: Page 6 of 6

of shares bought (trader to initial) Money spent Money lost Money gained Total at the end of the task Final total: Name: Value: 10 You have 10 to spend on shares in your

www.citizenshipteacher.co.uk 2011 16228 1

The stock market www.citizenshipteacher.co.uk 2011 16228 1 Lesson objectives I will understand what a stock market is. I will identify what caused the downturn in the American Stock Market. www.citizenshipteacher.co.uk