LESSON #4

KIDS, BULLS, AND BEARS, OH MY!

LESSO
N
OBJECT
IVE
POINT
TO
PONDE
R
ESSENT
IAL
QUESTI
ON
CONTE
NT
Outline
the
content
you will
teach in
this
lesson.

I. DEFINE OBJECTIVES AND CONTENT

Evaluate and design a plan for your financial horizons through investing in
the stock market.

"Financial peace isn't the acquisition of stuff. It's learning to live on less
than you make, so you can give money back and have money to invest.
You can't win until you do this." - Dave Ramsey
How will the stock market change and influence my financial horizons?

6. Factors that can effect stock prices

a. happenings within a company
i. mergers / acquisitions
ii. earnings reports
i.
suspension of dividends
ii.
the development or approval of a new innovative product
iii.
the hiring or firing of company executives
iv.
allegations of fraud or negligence
b.world events
i. war
ii. terrorism
iii. natural disasters
c.inflation and interest rates
i. adjustments of interest rates by the U.S. Federal Reserve to
combat inflation
ii. when interest rates are raised, many investors sell or trade
their higher risk stocks
d.exchange rates
e. hype about a company
i. release of new products or services
ii. people and organizations have an interest in promoting
particular stocks and industries to increase the value of their own
shares and profits
7. On the Horizon
a. TAL Education Group (XRS)
b. Lannett

c. Natural Health Trends

http://www.naturalhealthtrendscorp.com
d. Facebook http://www.facebook.comMobile advertising
makes Facebook one of the fastest growing companies in the U.S.
e. Disney (DIS)
f. NXP Semiconductor
8. The News, the Market, and Your Financial Horizons
a. Economic Indicators Predict Market Trends -There are many
reasons the Stock Market prices rise or fall.
i. The News - Example: The Bureau of Labor Statistics'
monthly employment figures are a key economic indicator.
ii. The Federal Reserve reveals the available money supply.
But with so much cash now being digitally transmitted, this indicator has
lost relevance.
iii. The Consumer Confidence Index measures perceptions
and attitudes
1. In the most simplistic terms, when their confidence
is trending up, consumers spend money, indicating a
healthy economy. When confidence is trending down,
consumers are saving more than they are spending,
indicating the economy is in trouble. The idea is that
the more confident people feel about the stability of
their incomes, the more likely they are to make
purchases.
2. Read more: Understanding The Consumer
Confidence Index
Investopediahttp://www.investopedia.com/articles/05/0
10604.asp#ixzz42H8D4NOm
iv.Natural Disasters - Top 5 Disasters that have affected
Stock Market

What will students

UNDERSTAND as
a result of this
lesson? How does
this connect to the

II. PRE-PLANNING
Students will understand the difference between a bear
and a bull market
Students will understand the influence of natural disasters
on the stock market

Essential
Question?

What will students

be able to DO as a
result of this
lesson?
HOOK
Describe how you
will grab students
attention at the
beginning of the
lesson.
BE CREATIVE.
INSTRUCTION
Explain Step-bystep what you will
do in this lesson.
Be explicit about
ties to Points to
Ponder, Essential
Question, and
Interactions here.
Include ALL
support and
teaching
materials with
your unit.

Students will explain factors that influence stock market

price changes
Students will be able to use current events to predict how
they impact the stock market

III. PLANNING
Students will use VR Google Cardboard Mission to Mars
to begin the discussion about events that could impact
their financial Horizon (7 minutes)
Looking at the world of VR, is this something finally
marketable? Some groups have released products; will they
become financially sustainable?

Each student will receive $1000 of Monopoly money at the

beginning of the day. Throughout the day, we will randomly
announce events that impact certain stocks, which will cause the
students to lose or gain money from their stash based on which
stocks they own. We are still working on these possible
scenarios. The group with the largest amount of money will
receive a prize.

Predict, on each level listed below, possible events that

could affect your financial Horizon:
Local: / State: / National: / World:

Discuss and display the impacts of events from the past,

present, future (Horizon) of how top news events affect
money and the stock market. Choose events from the year
students were born, current events July 2016 (Daily Online
newspaper and www.googlefinance.com), and students
will predict what they believe will be top news events in
the future (July of 2021)
Vocabulary Graffiti Wall: bear market: a market in which
prices are falling, encouraging selling. bull market: a
market in which share prices are rising, encouraging
buying. pigs: high-risk investors looking for the one big

score in a short period of time.

Top 5 Events that Rocked Stock Market We will look at

pictures and news clips of each event and discuss how
Mother Nature can upset the stock market. We will use
googlefinance.com to link news stories to the history of the
stock market

1)Indian Ocean Earthquake - December 26, 2004

This undersea earthquake had its epicenter off the west coast of Sumatra.
The earthquake and the resulting tsunamis killed over 230,000 people in
14 countries. There was no immediate effect on stocks. A low came 20
trading days later when the S&P had corrected 3.8%. It went on to rally as
much as 35% thereafter.
2) Haiti Earthquake - January 12, 2010
The 7.0 earthquake and some 52 aftershocks killed an estimated
316,000 people. There was no immediate effect on stocks. The S&P
closed as much as 6.6% lower 18 trading days later, but continued to
rally thereafter.
3) Hurricane Katrina - August 29, 2005
Hurricane Katrina is said to have been the costliest natural disaster in the
history of the United States. Property damage caused by the hurricane is
estimated to exceed $80 billion.
Surprisingly the S&P greeted the hurricane with an eight-day, 3% rally.
38 trading days the S&P was 2.4% lower. In terms of stock market
performance, the most costly natural U.S. disaster was no more than a
footnote; it couldn't even be picked out on a chart.
4) September 11 Attacks - September 11, 2001
9-11 is probably one of the most defining moments in United States
history. Following the attack, U.S. stock markets closed and remained
that way for the rest of the week. Once the market re-opened, the S&P
lost 11.6% in four trading days.
The panic selling, however, was short-lived and the Dow Jones (DJI:
^DJI), S&P (SNP: ^GSPC), Nasdaq (Nasdaq: ^IXIC), and Russell 2000
(Chicago Options: ^RUT) recovered to pre-9-11 levels within a month. It
is often omitted that the S&P had already lost 16% before the planes hit
the World Trade Center.
5) Japan Earthquake - March 10, 2011
Even though the scope of the Japan earthquake has yet to be fully
comprehended, there is no doubt that the combination of earthquake,
tsunami, and nuclear meltdown will have a long lasting effect on Japan and
that ripple effects could be felt the world over.

Top Most Outrageous Stock Market Scams:

1. Stock Exchange Hoax of 1814 - One of the 1st. February 21,
1814, a man dressed in a British uniform pronounced that
Napoleon had been killed and the Napoleonic Wars were over.
London Stock Exchange celebrated and stock prices went
up.
o Soon discovered that the whole thing was a hoax,
and someone (person never caught) had set the
situation up so that he might profit from the false
news.

2.October 29, 1929, Black Tuesday hit Wall Street as investors

traded some 16 million shares on the New York Stock Exchange
in a single day. Billions of dollars were lost, wiping out thousands
of investors. In the aftermath of Black Tuesday, America and the
rest of the industrialized world spiraled downward into the Great
Depression (1929-39), the deepest and longest-lasting economic
downturn in the history of the Western industrialized world up to
that time.
3.Enron

ASSESSMENT
(Performance
Task) What will
the students DO
to demonstrate
that they have
mastered the
content? Be
specific and
include actual
assessment with
unit materials.

Stock Market Game: students will continue to monitor their

online portfolios, and choose to buy, sell, or trade their
stocks (20 minutes)
VoiceThread: students will record a 30 second segment
about what they learned this week in camp and send it to
their parents email
Students will revisit Stock Market IQ test and then we will
give correct answers, (3 minutes)
Daily ringing of the bell

Twitter Update: In 120 characters or less, please post a

reflection of what you have learned today about the effects on the
stock market and/or how you plan to prepare for your
HORIZONS. You must include the word Horizon in your
message.
**Set up a Twitter account right before camp #stockmarketecu

DOES THE ASSESSMENT ALLOW YOU TO DETERMINE WHETHER OR NOT THE

STUDENTS HAVE MET YOUR STATED LESSON OBJECTIVE? YES OR NO