This document provides information about investing and the stock market. It begins with instructions for an activity where students simulate investing in stocks. They are given $10,000 to invest across different industries and updates on news that would affect stock prices. The document defines key terms like stocks, bonds, stock exchanges, stock symbols, and bull and bear markets. It also profiles famous investors like Warren Buffett and provides examples of how to calculate stock prices and potential returns. The simulation aims to help students understand how the stock market works and why people choose to invest their money.

1. Verbal Bellringer
1. Write “Computer Lab, CPU LAB 252– Econ”
for Monday Tuesday, Wednesday in your planner or on your phone
2. Why do you think people invest their
money?
3. What is the opportunity cost of investing
money?

2. Label Cornell
notes
• “How does the
Stock market
work?”
• “Why do people
invest?”
Questions or
Comments
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3. Bellringer
• Stocks
• Bonds
• Dividends
• Stock Market
• Stock Symbols
• Stock ticker
• NYSE, NASDAQ
• Dow Jones
• Bull vs. Bear
• Industries
1 Make a
KWL chart
about the
stock
market
and
investing

4. Investing in the USA
• Stocks
• Bonds
• Stock Market
• NYSE, NASDAQ
• Dow Jones
• Bull vs. Bear
• Industries

5. Savings Accounts
• 0% -
0.5 %
interest

6. Investing
• Brokerage Account
• Old School – Stock Broker
• Higher fees, but advice
• New School – DIY online
• Lower fees, little to no help

7. A stock broker at work
• Finance
degree
• Income:
$50,000 and
up
• Commission
per trade

8. Famous Investor
Warren Buffett (1930-
One of 3 Richest people
in the world ($52
Billion)
Successful investor
Earns only pays himself
$100,000/year
“hold investments”

9. Bonds
• Government backed
• Very Safe
• Low risk
• Low return
• Loan for a time
• Corporations also
offer them

10. Stocks
• Ownership in a
publically
traded
corporation
• Issued to raise
capital
• Some pay
dividends
• Voting rights

11. Stocks
• Stock Calculation:
• $25.90/share
• You have $1000 to
invest in Disney
• $1000 investment
• $25.90 per share
• You can buy 38.6
shares with $1000
• Dividend: $0.35 /year
Investment divided by share price =
shares you can buy

12. Let’s try one
• $1,000 investment
• Someone name a large company

13. Stocks
• Stock Calculation:
• $25.90 share price
• You own 38 shares
• Price $28/share
$28 X 38 = $1064 now!
Total investment = share price X shares owned

14. Stock Exchange
• Stock Market
• Place where
Stocks are traded
• Most famous:
NYSE
• Wall Street
• Others: NASDAQ,
• Nikkei
• London
• Hong Kong
• Chicago

15. 2011 New York Summer

17. Stock Symbols
• Makes trading
easier
• EX: Disney = DIS
• Use
finance.google.com
to look them up
• Read a stock ticker

24. “Dow Jones”
• Dow Jones” –
average 30 top
companies
• MMM, AA, AXP,
T, BAC, BA, CAT,
CVX, CSCO, KO,
DD, XOM, GE,
HPQ, HD, INTC,
IBM, JNJ, JPM,
KFT, MCD, MRK,
MSFT, PFE, PG,
TRV, UTX, VZ,
WMT, DIS

26. Bull vs. Bear Markets
• Bull Market
• Bear Market

28. Industries
• Field of business
• Stocks follow
others
• “Chinese
increase car
purchases”
• Tough times for
biotechnology

29. Stock Market Game
• $10,000 to invest
• Must spread out
among 6 industries
• Winner: 2 excused
assignments
(December 6)
• http://www.marketwatch.com/game/pueblo-spring

30. Stock Market Simulation

31. Old School Stock Market
Simulation• Sellers/Buyers
• 2 minute trading day
• 3 companies, Ford (F) , Campbell's (CPB),
Adobe (ADBE)

32. Groups of 1-2
2. On a half sheet write down how much
money Klein gave you
3 Write down your goal for this simulation

33. News of the Day
• American businessmen fear US government
debt
• Consumer demand for soup increases by 10%
• Chevy announces new hybrid model

34. News of the Day
• Mexican tomato growers watch 80% crop killed
• President Obama announces increase in
income taxes
• Adobe announces record breaking year

35. News of the Day
• US signs trade deal with Australia, tariffs on
cars eliminated
• Consumer debt at an all time high
• US consumers frustrated with Indian tech
support

36. News of the Day
• Gas price up to $5/gallon in US
• US computer companies sell 20% more
computers last month
• US consumers get rebate check of $200

37. News of the Day
• US Unemployment Rate increases to 10%
• US tourism increases for the second straight
month
• Microsoft announces new product to compete
with Acrobat Reader

38. Final Stock Prices?
• Ford? OPEN: $1
• Campbell's? OPEN: $1
• Adobe? OPEN: $1

39. Closure
• Write 3 “How” or “Why”
questions in question section
• Write your summary based on:
• “How does the Stock market
work?”
• “Why do people invest?”
• Use new vocabulary

40. Closure
4 How much did you finish with?
5 What effect did the news have on
your investing?
6 Explain why you think this was a
Bear or Bull market?
7 Fill in 3 things you learned today
on the L column of #1

41. On your half sheet
6 How much did you start out with?
7 How much did you finish with?
8 What effect did the news have on your
investing?
9 How well did you stick to your goal?
10 What would you do different if we were
investing in the real world?
11 Explain why you think this was a Bear or Bull
market?