Stock Market 101

Stock Market 101 Lesson Plan

Invest some time in learning about the stock market. Your time could really pay off!

  • 1.

    What is the stock market? As a class, brainstorm a list of things known about stocks and financial markets from books, media sources or family and friends. Make a list of student contributions on a classroom white board using Crayola Dry Erase Markers.

  • 2.

    The stock market is an organized marketplace where stocks, or shares of a company, are bought and sold. Companies sell stock in their business in order to raise money to start or expand their operations. Organize students into collaborative groups and challenge them to look up stock prices for companies that produce some of their favorite items. How much would you pay for one share?

  • 3.

    The stock market fluctuates, or goes up and down, based on the global economy. Research the difference between a "bear" and a "bull" market. What type of market are we experiencing now?

  • 4.

    In order to understand how the market changes daily, invite each group to select five stocks to follow. Create a chart on construction paper with Crayola Metallic FX Crayons and Metallic Colored Pencils. Each day over the course of four weeks, record your daily stock price.

  • 5.

    How do stock prices changes over the month? Was there any news that impacted your stock prices? If the stock paid dividends, how much money would you have made? Use data to support responses.

  • 6.

    Each student group organizes their data integrating it into a brief presentation for classmates. During the presentation, members of the group share the stocks selected, reasoning why these stocks were chosen, and how the stocks fared during the period of observation. Share, as well, steps the team would repeat and others they would do differently if this process was repeated.

Standards

  • LA: Read and comprehend informational texts, including history/social studies, science, and technical texts, at the high end of the grade level text complexity band independently and proficiently.
  • LA: Determine or clarify the meaning of unknown and multiple-meaning words and phrases based on grade level reading and content, choosing flexibly from a range of strategies.
  • LA: "Conduct short research projects that build knowledge about a topic.
  • LA: Include multimedia components (e.g., graphics, images, music, sound) and visual displays in presentations to clarify information.
  • LA: Adapt speech to a variety of contexts and tasks, demonstrating command of formal English when indicated or appropriate.
  • SS: Give examples of the various institutions that make up economic systems such as families, workers, banks, labors unions, government agencies, small businesses, and large corporations.
  • SS: Explain and demonstrate the role of money in everyday life.
  • SS: Use economic concepts such as supply, demand, and price to help explain events in the community and nation.
  • SS: Give examples of conflict, cooperation, and interdependence among individuals, groups, and nations.
  • VA: Intentionally take advantage of the qualities and characteristics of art media, techniques, and processes to enhance communication of experiences and ideas.
  • VA: Select and use the qualities of structures and functions of art to improve communication of ideas.

Adaptations

  • Possible classroom resources include: Six Days in October: The Stock Market Crash of 1929: A Wall Street Journal Book for Children by Karen Blumenthal; Growing Money: A Complete Investing Guide for Kids by Gail Karlitz & Debbie Honig
  • Organize students into three groups, Have each group research one of the three major financial markets in the United States. As a whole class, compare and contrast the three markets.
  • Students interview family members about investing in the stock market. Prior to the interview, students collaborate to write questions for interviews. Word process student questions and provide a copy of the questions for each student in the class. After the interviews are complete, students return to the classroom to share reasons for investing in the stock market and what strategy is used to invest.