COPYRIGHTED MATERIAL
Gaining Attention Recall HnnH Goes Public! In the last lesson, our hypothetical company HnnH, completed an IPO. Its stock is now publicly traded on the stock market. What if you had purchased HnnH stock as an investment? How would you keep track of its value? How can you compare the value and performance of its shares to shares of other companies? Display the HnnH stock chart. (Slide 15 G). You’ve probably seen something like this on a financial news site or program. It is a stock table . This is the stock table for our fictional company, HealnnHeels. What does it tell you about HnnH stock? What do all those numbers, symbols, abbreviations, arrow, and technical information mean? SLIDE 15G Advise students that in this lesson, the words shares , securities and stock are used interchangeably. PRODUCT PREVIEW Communicating Objectives Upon completion of this lesson, you will know the difference between an institutional and individual investor, and how to interpret the information on a stock table. You’ll be able to list ten stock fundamentals and compare the G8, G7, and G20. If your students will be participating in a stock game, advise them that they will also begin a new team competition. They will form investment teams to create stock portfolios and track their values. The competition will begin _____ and end _____. The team with biggest increase in portfolio value wins! Presentation of Content Recall that in the last lesson, students learned that there are securities exchanges all over the world. Anyone, anywhere can invest in the growth of a company in any other country. The largest exchanges are the NYSE, NASDAQ, London Exchange, Hong Kong Exchange, Shanghai Exchange, and Tokyo Exchange. Hundreds of billions of dollars in transactions flow through global securities exchanges every day. You will recall that on March 20, 2015 over $115,000,000,000 worth of shares were traded in a single day on the NYSE and that, on average, about $40 billion worth of shares trade daily on the NYSE. That’s just one of the world’s exchanges! Stock markets are powerful engines driving the world’s economies and important avenues for building personal wealth . With numbers like that, it is obvious that many people invest in the stock market. Some own stock directly through an investment account called a brokerage account . Through their account with a brokerage firm, such as E*Trade, T. Rowe Price, or Scottrade, they buy and sell stock and other securities. They are called individual investors . Even more people own stock indirectly as a member of a retirement fund , mutual fund , or pension fund . These funds are called institutional investors . They pool the money of their many individual members to purchase large blocks of stock or other securities. These funds are professionally managed and can (date) (date) 52W HI 18.76 52W L 11.22 Stock HealnnHeels Hi 15.31 Low 14.90 Cls 15.25 Net Chg 0.15 Tkr HnnH Div .28 Yld % 1.83 P/E 9 EPS 00 1.68 Vol 1,570,000
MrkCap
129.46M
285 THE 21st CENTURY STUDENT’S GUIDE TO FINANCIAL LITERACY
Made with FlippingBook flipbook maker