Name: Date: Economics Stock Market Extra Credit Project. Overview

Transcription

1 Name: Date: Economics Stock Market Extra Credit Project Introduction Overview The Stock Market Project will be an opportunity for students to learn about and explore the stock market while trying to create the largest profit from a mock stock portfolio. The project will run until the end of the 20 week Economics course, with students reporting in their results on a regular basis. Students will learn the following: How stocks and the stock market work, including how to look up the closing price of a stock in the newspaper, calculating investment value and percentage return, and researching company background. Math skills, including manipulating decimal numbers, signed numbers, and percentages. How to organize and analyze a large amount of data. Practical presentation and data organization skills. The main benefit of the project is that it is relevant and generates excitement among the students. They want to learn how to calculate gain, losses, and percentages in order to figure out how much money they made. As the deadline to see the stock approaches, you should keep asking, Who is going to win? or Who will lose the most? At the end of the course, bonus points will be given to the team who has profited the most (or in the case of a recession or depression, lost the least). Initial Investment Students should break into teams of two. Students will be given time in class to pick their stocks using their initial investment fund of $10,000. The process for picking the stocks includes: 1. Students may pick as many companies as they want, but must always be invested in a minimum of three companies. Students may invest as little or as much of their investment capital as they choose. Students will look up the closing prices of their stocks from the day before (note: closing prices published in the newspaper represent the prior day s activity). I recommend you use the CNN Money website at but there are a multitude of other websites available. The stocks must be listed on the listed on the New York Stock Exchange, NASDAQ, or American Stock Exchange. 2. If Company A cost $43.30, and you want to invest $5,000, divide your investment by the price of the stock to and arrive at the number of shares you can purchase (in this case, 115 shares--it is not possible to buy partial shares). 3. After the number of shares for all three companies has been calculated, multiply this by the closing price, giving you the exact investment values. 4. Record all of this information on an Initial Investment Summary. These investment values will be used throughout the project to calculate weekly and final gain and loss on each stock. This is your starting point. 5. You do not have to spend all of your investment capital, but remember, you will not earn (or lose) any money on capital not invested. 6. You may buy and sell any stocks you wish at any point during the course, but there will be a $10 transaction fee for every change you make. You may reinvest any profits you make, as well. 7. You will be given time each class to track your stocks and record their progress. 8. After selecting your initial portfolio, in addition to providing the current market information on that stock, you will also have to provide a one paragraph write-up for each stock outlining why you chose that stock for your portfolio. 9. At the end of the semester, the team that has gained the most profit (or lost the least) will be given a 5 point bonus on their final average, 2 nd place will be given 4 points, 3 rd place 3 points, 4 th place 2 points, and 5 th place 1 point. No points will be awarded for any team 6 th place and below.

2 Initial Investment Summary Names: Stock Name and Symbol Stock #1 Share Price on Date Purchased Number of Shares Purchased Total Value of Investments on Purchase Day Stock #2 Stock #3 Stock #4 Stock #5 Stock #6 Stock #7 Stock #8 Stock #9 Total Investment Out of your initial $10,000, how much cash do you have left over?

3 Price Tracking Worksheet Names: Stock Name and Symbol: Date Closing Price Daily Price Change Daily % Change Investment Value Change from Original Value % Change in Value

4 Final Summary Worksheet Names: Stock #1 Number of Shares Owned Share Price Today Value of Investments Today Value of Investments on Purchase Date Net Gain (or loss) Stock #2 Stock #3 Stock #4 Stock #5 Stock #6 Stock #7 Stock #8 Stock #9 Total Investment

5 Purchase Order Form Names: Date: This form is used to make a stock transaction. Please fill it in accurately and completely to authorize your financial transaction. Remember that every transaction is charged a $10 broker s fee. Brokerage Fee = $10/ Total Fees Due = Team Signatures: Teacher s Signature: