Student Activity Packet - 2020-21Mr. Marynovskyy



Semester Course7.2 What is a Stock?Student Activity PacketName: In this lesson, you will learn to: Explain what it means to own stock and how you can make money from it Identify the risk of investing your money in the stock market Analyze the performance of individual stocks over time ResourcesQuestions1 Discussion PromptsDiscuss these questions with your classmates or with a partner.Estimated time: 5 minsWhat comes to mind when you hear the term “stock market”? 2How The Stock Exchange WorksWhat is the stock exchange and how does it work? Watch this German video to find out (the facts are true in the U.S., too!) and follow your teacher's directions to answer the questions either in your student activity packet or within the EdPuzzle itself.NOTE: EdPuzzle videos shuffle answer choices and do not always match the order provided in the lesson here.Estimated time: 5 minsIf the price of the share grows as the company grows, how does buying shares in a company benefit an investor? An investor will be able to sell these shares for a lower price and make a profit.An investor will be able to sell these shares for a higher price and make a profit.An investor will be able to enjoy free services from the company they bought shares from.An investor will be able to put the company on their resume.How does selling shares on the stock exchange benefit companies? They rely on a low return when selling shares.They are immune to any volatility in the stock exchange when they sell their shares.They receive funds to further expand their company.They get more customers than when they did not sell shares.As an investor, what is the risk involved when investing in companies on the stock exchange?Investors can lose their existing shares if the value of the stock does not increase within 90 days of purchaseOnce they purchase a share, investors cannot sell them at a higher priceThe price of stocks can decrease; for example, when the company receives bad pressInvestors are only at risk if the purchase a share when the stock price has fallen3Stock Performance - ChipotleStock Performance - NikeStock Performance - AmazonStock Performance - Snap Inc.Now that you know what it means to own individual stocks, let’s see how some popular stocks are doing in the market! Compare the performances of these stocks to answer the questions. Estimated time: 10 minsEach company has an abbreviated name called a ticker symbol. What is the ticker for each of these companies? Which of these stocks has seen a significant rise in stock price in the past year? Which ones have stayed about the same? Have any decreased in price? Look at the 5-year performance for Chipotle. Why do you think there was such a huge decrease in price in January 2016? (Hint: you might want to look it up!) Now look at the 5-year performance of Amazon. What do you think explains the general upward trend of the stock price? 5Exit TicketFollow your teacher’s directions to complete the Exit Ticket.Estimated time: 5 mins Explain what it means to own an individual stock. What are the two ways you can make money from investing in the stock market? What risk are you taking when you invest your money in the stock market? ................
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