UNIT TITLE: Investment and the Stock Market

UNIT TITLE: Investment and the Stock Market

Author: Dianna Granata

E-Mail Address:(optional)

School: Evergreen Park High School, Evergreen Park, IL 60805

School Home Page URL: www.evergreenpark.org

THEME: Business and Investment

BROAD CONCEPT: Risk and Reward in Investment

GRADE: Level 9 -12

INTEGRATED SUBJECTS: Business, Economics, Technology, Writing and Research

UNIT GOALS AND PURPOSE:

The purpose of this unit is twofold: to introduce freshman and sophomore students to investing in the stock market and also to teach them to do research on the Internet. The students will choose a company to research. They will then find the stock symbol for this company and track the progress of their company's stock for a period of four weeks. At the end of the four weeks the students will enter the data they have gathered into a spreadsheet and create charts illustrating their results. They will also research, using the Internet, periodicals and books, the company whose stock they are tracking. They will investigate the company's history, its founders, executives, products and/ or services, and its financial prospectus. They will report all of this information in a word processing document. They will maintain a portfolio throughout the project containing their stock results and research materials. The capstone of the project is a Power Point presentation created which outlines their findings. They will then deliver this presentation to the class. It is the goal of this project that the students become familiar with the details of one major corporation, and with the workings of the New York Stock Exchange and the NASDAQ. The students will also refine their research skills, and write a short paper. Finally, they will gain experience in public speaking when they deliver their projects to the class.

TIME FRAME: 4 weeks; 3 days per week; 40 minutes per day,

approximately 480 minutes to complete the unit.

OBJECTIVES:

In this lesson, students will:

* Track the performance of a company's stock

* Maintain an investment portfolio for four weeks.

* Evaluate the results of their stock's performance.

* Calculate gain or loss on investments.

* Create a spreadsheet to display results.

* Create a chart illustrating investment results.

* Research the company and compile a company profile.

* Prepare a typed report covering the company.

* Prepare and deliver a presentation (Power Point) on the company

* Incorporating charts and spreadsheet in presentation

* Incorporate investment results in presentation.

MATERIALS:

* General materials and equipment

Books containing company profiles

Folders for investment results (bright colors work best)

Teacher generated handouts explaining the project.

Teacher generated handout explaining how to calculate investment results.

* Technology tools

Computers

Internet

LCD panel and overhead or projector

Floppy disks

Computer terminals with access to the Internet

Computers with word processing software (Word)

Computers with presentation software (Power Point)

Computers with spreadsheet software (Works or Office)

Computer, with LCD panel, and screen to deliver presentations

* Software Used in this Unit

Desktop Publishing: Print Shop

Brainstorming: Inspiration

Word Processing: Microsoft Word, Works and/ or WordPerfect

Spreadsheet: Excel or Microsoft Works

Multimedia: Power Point

STATE STANDARDS ADDRESSED BY THIS UNIT:

This unit was created for an introduction to business course. There are no state standards for the course, however, the project does address some of the standards in several areas.

Social Sciences

Using Technology

Use appropriate instruments, electronic equipment, computers and networks to access information, process ideas and communicate results.

A. Understand how different economic systems operate in the exchange, production, distribution and consumption of goods and services.

15.A.5a Explain the impact of various determinants of economic growth (e.g., investments in human/physical capital, research and development, technological change) on the economy.

15.A.5b Analyze the impact of economic growth.

15.A.5c Analyze the impact of various determinants on the levels of GDP (e.g., quantity/quality of natural/capital resources, size/skills of the labor force).

15.A.5d Explain the comparative value of the Consumer Price Index (e.g., goods and services in one year with earlier or later periods).

E. Understand the impact of government policies and decisions on production and consumption in the economy.

15.E.4a Explain why government may intervene in a market economy.

15.E.4b Describe social and environmental benefits and consequences of production and consumption.

15.E.4c Analyze the relationship between a country's science/technology policies and its level and balance of trade.

15.E.5b Describe how fiscal, monetary and regulatory policies affect overall levels of employment, output and consumption.

READING

C. Comprehend a broad range of reading materials.

1.C.4c Interpret, evaluate and apply information from a variety of sources to other situations (e.g., academic, vocational, technical, personal).

1.C.4f Interpret tables, graphs and maps in conjunction with related text.

1.C.5f Use tables, graphs and maps to challenge arguments, defend conclusions and persuade others.

WRITING

A. Locate, organize, and use information from various sources to answer questions, solve problems and communicate ideas.

5.A.3a Identify appropriate resources to solve problems or answer questions through research.

5.A.3b Design a project related to contemporary issues (e.g., real-world math, career development, community service) using multiple sources.

C. Apply acquired information, concepts and ideas to communicate in a variety of formats.

5.C.2a Create a variety of print and nonprint documents to communicate acquired information for specific audiences and purposes.

5.C.2b Prepare and deliver oral presentations based on inquiry or research.

STUDENT ACTIVITIES WHICH WILL PROMOTE ENGAGED LEARNING:

Lesson 1: Students brainstorm using Inspiration software to generate a list of possible companies to invest in or to research. The companies must be large enough to have information and company profiles readily available. They must also have publicly held stock available for purchase.

Lesson 2: Chart the progress of one stock for four weeks. Using Quicken.com, NYSE.com, Hoovers.com, Company sleuth.com, pick a stock to follow and a company to research.Pick a stock whose products are interesting to the student; it will make research more fun. More established stocks tend to fluctuate less than newer issues. Keep these things in mind when choosing a stock to chart.

Lesson 3: Print out the stock quotes using the Internet containing the day's highs and lows for your stock for one week (Monday though Friday). Use the NYSE.com home page or Quicken.com to locate last five days of trading results. This will be done on Monday of each week for four weeks. Students keep the results/ printouts in their portfolios. I give them bright colored folders to bring to the Internet lab. This usually helps them stay organized and remember to bring the correct folder. Once the student has selected the stocks that to follow they are to make a hypothetical stock purchase of shares of each issue (stock). They can spend up to $1000.

Lesson 4: Students go the Internet lab to research their companies. They will use the following websites to do this research: Hoovers.com, Companysleuth.com, Dunn & Bradstreet, NYSE home page, Quicken.com, Askjeeves.com, and The Fortune 500 List.

Lesson 5: Students will go to the school library to use reference material there: some textbooks or CD roms. Our library has several good reference books which contain company profiles that students can use.

Lesson 6: Students spend two half days (40 minutes each period) typing their reports on the companies they researched. This research will cover each stock (company) they invested in. This might include information about what the company produces, its size, location, number of shareholders, etc. They will use word processing software for this. They can use Word, Works or WordPerfect for this.

Lesson 7: Using a spreadsheet program, like Excel or Microsoft Works, students will input all the data collected on their stocks over the four weeks of the project. They will create a spread sheet with the dates and open and closing prices of the stocks for four weeks. Then they will create a line graph using the spreadsheet tools. They will print this out and turn it in with their final portfolio.

Lesson 8: Students will create a cover sheet for their stock and investment portfolio using a simple desktop publishing program like Print Shop Deluxe. They will also type an illustrated table of contents for their portfolios using a desk top publishing program like Print Shop Deluxe or The Writing Center.

Lesson 9: The students will then create a slide show which summarizes their research, investments, gains and/or losses. They must have at least 10 slides including an introductory slide and a closing slide. They must add transitions and sounds to their presentations.

* This project will be judged by the following criteria:

presentation (neatness, organization)

documentation (copies of stock prices or clippings must be organized by date)

1. Typed report on company with cover sheet 200 points

2. Spreadsheet chart of stock progress (open, close) 100 points

3. Computer generated chart of stock progress. 100 points

4. Four weeks (printouts) of daily stock prices 100 points

5. Presentation (Power point) 200 points

All of these items must be submitted in a portfolio in order with a table of contents.

Lesson 10: Students will present their projects to the class using Power Point software. These presentation grades will be included in their total portfolio grades.

SHARE YOUR IDEAS: The students will present their projects to the class via a Power point slide show (see the preceding section). They will narrate their own presentations. They will also turn in a portfolio containing all research, stock printouts, spreadsheets, graphs, and charts created. This will be graded using the rubric presented in the preceding section.

STUDENT AND TEACHER ROLES:

Teacher's Role: The teacher will serve as guide, and facilitator. The teacher will provide the necessary background information, websites, and access to necessary texts to complete the project. The teacher will also model in class what is expected of the students as their outcomes for the project.

Student's Role: The students will collect the information on their companies and stocks. They will do this one day a week for four weeks. They will spend about 80 minutes researching their companies and then another 60 - 80 minutes typing the report. They will then spend another 60 minutes creating spreadsheets and charts of their investment results at the end of the four week project. Finally, the students will spend another 60 minutes creating a Power Point presentation. They will deliver these presentations to the class and they will submit a portfolio containing their results, reports, spreadsheets and charts at the completion of the project.

ADDITIONAL REFERENCE PRINT RESOURCES STUDENTS MAY USE :

Company Profiles for Students by Donna Craft (editor)

Hardcover - 1585 pages (December 1998)

A useful, thorough work profiling 280 companies. Each alphabetical entry provides an overview and then covers topics such as "Company Finances," "Analysts' Opinions," "History," "Strategy," "Current Trends," and "Global Presence."

The Corporate Directory of U.S. Public Companies 2001: Company Profiles and Indexes (Corporate Directory of US Public Companies

Hardcover (January 2001)

Newsweek Magazine

Business Week Magazine

Fortune Magazine

The Wall Street Journal

THE FOLLOWING BOOKS CONTAIN INFORMATION ABOUT THIS TOPIC:

Caes, Charles J.,The young zillionaire's guide to the stock market.

New York : Rosen Pub., 2000.

Bamford, Janet. Street wise : a guide for teen investors

Princeton, NJ : Bloomberg Press, c2000.

Maturi, Richard J. Divining the Dow : 100 of the world's most widely followed stock market prediction systems Chicago, IL : Probus, 1993.

How the stock market works

New York : New York Institute of Finance, c2001.

Introduction to Business: Our Business and Economic World

Glencoe McGraw-Hill, 1997

FOR ADDITIONAL ONLINE INFORMATION AND MEDIA PERTAINING TO THIS UNIT, TEACHERS MAY WANT TO USE THE FOLLOWING INTERNET ARTICLES:

Title1: Practical Money Skills

URL1: www.practicalmoneyskills.com

Description1: Resources for teachers and students regarding financial education.

Title2: Stock Market Simulation: The Educator

URL2: http://stocksquest.thinkquest.org/10326/market_simulation/educator.html

Description2: This is a free stock market trading system that is available 24 hours a day, year round. The educator allows teachers to help students learn more about investing.

Title3: The Nasdaq home page

URL3: www.Nasdaq.com

Description3: The home page of the National Automated Securities Dealers.

Title4: SIFEE Stock Market Game

URL4: http://www.smg2000.org/

Description4: Simulation for the classroom and an annual national contest. A program of the Securities Industry Foundation for Economic Education

Title5: Good News Bears

URL5: http://archive.ncsa.uiuc.edu/edu/RSE/RSEyellow/gnb.html

Description5: A Web-based Interactive Stock Market Learning Project for K-12

Title6: Securities and Exchange Commision home page

URL6: www.sec.gov

Description6: A Web-based Interactive Stock Market Learning Project for K-12