Objective
By the end of this lesson, you will understand the basics of the stock market, including how stocks are bought and sold, and how to calculate simple stock profits.
Materials and Prep
- Pen and paper
- Calculator
- No prior knowledge needed
Activities
- Stock Market Simulation: Create a pretend stock market scenario where you "buy" and "sell" imaginary stocks. Keep track of the prices and calculate your profits.
- Research a Company: Choose a company you like and research its stock price history. See how the stock has changed over time and try to understand why.
- Stock Market Math: Practice calculating simple stock profits. Choose a stock, decide on a purchase price and a selling price, and calculate your profit using the formula: Profit = (Selling Price - Purchase Price).
Talking Points
- What is a Stock: "A stock represents ownership in a company. When you buy a stock, you become a part owner of that company."
- Buying and Selling Stocks: "To buy a stock, you pay a certain price called the 'stock price'. To sell a stock, you receive a certain price. The difference between the selling price and the purchase price is your profit or loss."
- Stock Market Basics: "The stock market is where stocks are bought and sold. Prices of stocks can go up or down based on how well the company is doing."
- Calculating Profits: "To calculate your profit from a stock sale, subtract the purchase price from the selling price. This tells you how much money you made from selling the stock."