GED 2002 Teachers' Handbook of Lesson Plans

Activity Title - Understanding the Stock Market

Area/Skill – Math, LA Reading and Social Studies Cognitive Skill Level –Critical Thinking & Application

Activity Title - Understanding the Stock Market

Goal/Objective

To figure gain and loss using the stock market.

Lesson Outline/Introduction

Many people invest in the stock market. They use the Internet and the newspaper to watch how their stocks are doing. If the stock increases in value, a gain is reported. If the stock decreases in value, a loss is reported. Sometimes these gains and losses are reported in points, but they can also be reported in percentages.

Activity

The class will work in small groups. They will look at one person's stock market provided in the handout and answer the questions provided. They will also be given a line graph to visually monitor the stock. After students answer the questions, they will share their answers with the class.

Debriefing/Evaluation Activity

Students can report this person's loss or gain in the stock market for the week. Each group can discuss whether or not a week is enough time to identify stock market trends.

Materials, Texts, Realia, Handouts

  • Handout "Understanding the Stock Market"
  • Handout "Wally Mart"
  • Pencils, paper, graph paper
  • Newspaper and Internet (if available)

Extension Activity

Give the students the opportunity to purchase stock by giving each student $70,000 to buy stock over a period of one month. Have students graph gains and losses to share with the class at the end of the month.

ESE Accommodations

Real-Life Connection

Ask students if they have purchased stock or if they follow the stock market on the internet or newspaper. Discuss why the stock market is important to the overall economy. Discuss, contrast and compare the stock market crash in 1929 and the effects of 9/11 on the stock market and global economy.

Area/Skill – Math, LA Reading and Social Studies Cognitive Skill Level –Critical Thinking & Application

Activity Title - Understanding the Stock Market

Introduction

Ask: Has anyone ever invested in the stock market? How did you keep track of your gains and losses? Do you ever look at the different graphs or articles in the Internet or newspaper regarding the stock market?

Say: Many people have invested in the stock market. They use the Internet or newspaper to watch how different stocks are doing. If the stock increases in value, a gain is reported. If the stock decreases in value, a loss is reported. Sometimes, these gains and losses are reported by points, but they can also be reported in percentages.

Main Activity

Say: The class will work in small groups. Each student will be given a handout with information and questions to be answered and a line graph. They will work on this sample as if it were their stock. The groups will report to the class their answers to the questions.

Closure/Conclusion

Have the students discuss whether or not a week is enough time to identify stock market trends.

Debriefing/Evaluation Activity

Each student will get a copy of the business section of the newspaper. The group will now invest in the stock market and see how well they do over a month. Each group will invest $70,000.00. They will purchase their initial stock and buy and sell any stock they wish. At the end of each week, the group's will figure their net loss or gain and document your information on a line graph. At the end of the month, they will figure their total net gain or loss and share with the class. Assign students to do research on the importance of the stock market to the overall economy of the United States, as well as the global economy and what will happened to the stock market in 1929. Have students discuss what happened to the stock market after 9/11.

*** Handout - Understand the Stock Market ***

You have worked for Wally Mart for five years and you are eligible to buy stock in the company. You decided to watch how the stock was doing on the stock market for a week before you made up your mind whether to buy any. You learned that stock are sold in shares and prices are given in units called points.

Example: How much did the price of a share of stock go up from Monday to Tuesday?

Find the price of the stock on Monday, 15.8. Find the price of the stock on Tuesday, 19.5.

Subtract to find the difference.

 19.5
-15.8
   3.7

The price of one share of stock went up 3.7 points from Monday to Tuesday.

1. How many points did a share of stock go down from Tuesday to Wednesday?

2. How much higher was the stock on Thursday than it was on Monday?

3. Circle th expression you would use to find the price of 40 shares of stock if you bought them on Tuesday. Solve for the answer.

a) 40 + 19.5
b) 40 -  19.5
c) 40 x 19.5
d) 40 ÷ 19.5

4. Circle the expression you would use to find the price of one share of stock if the price went up 1.8 points from the price it was on Friday. Solve for the answer.

a) 15 + 1.8
b) 15 -  1.8
c) 15 x 1.8
d) 15 ÷ 1.8


stock graph to indicate ups & downs in the stock market D.


Jeanni Pruitt, Northeast Texas Community College


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