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S&P 500
a market index that includes 500 of the most widely traded stocks of the NYSE and Nasdaq. the Nikkei; an index of 225 top-rated Japanese companies listed on the Tokyo Stock Exchange. the Hang Seng or HSI; an index consisting of the 50 largest companies traded on the Hong Kong Stock Exchange. a period of long term rise in the stock market, or a particular sector or industry within it. a period of long term decline in the stock market, or a particular sector or industry within it.
Nikkei 225
Hang Seng
bull market bear market
Lesson Objectives By the end of this lesson the student will be able to: 1. Explain the purpose of a stock index. 2. Interpret a stock index.
SLIDE 16F
3. Name five major market indexes. 4. Compare a bear vs. bull market. 5. Tell about the goals and tools of the International Monetary Fund and World Bank. Gaining Attention Engage students in a discussion: You know those standardized tests students (and teachers) endure every year? The data provided by those tests is analyzed, scrutinized, and agonized over by state education officials, district administrators, principals, teachers, and parents. Why? What does the test data reveal? (Take answers.) The data reveals far more than the progress of an individual student. Students’ scores, when averaged, provide an indicator of how students, as a whole, are performing. The data can be compared class-to-class, school- to-school, by district, state, and grade level. This tells educators whether a) they are on the right track; or b) they need make some changes to their teaching strategies. In a way, stocks are like students. Stocks don’t take tests, of course, but upward and downward price movements of a group stocks, when averaged, provide analysts and investors with an indicator of how the market, or a particular sector, industry, or type of stock is performing. The data can be compared against other markets, sectors, industries, or types of stock. This tells investors whether a) they’re on the right track; or b) they need make some changes to their investment strategies. Communicating Objectives By the conclusion of this lesson, you will be able to explain the purpose of a stock index, interpret stock index data, and name five major market indexes. You’ll compare bull and bear markets, and tell about the goals and tools of two important global organizations, the International Monetary Fund and the World Bank. SLIDE 16G PRODUCT PREVIEW
Lesson 16 | Bulls and Bears and Boats, Oh My! 302
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