LESSON #2

BUYER BEWARE!

LESSON
OBJECTIVE
POINT TO
PONDER
ESSENTIAL
QUESTION
CONTENT
Outline the
content you will
teach in this
lesson.

I. DEFINE OBJECTIVES AND CONTENT

Organize possible stock market investments and create portfolio
using Stock Market Simulation
"In investing, what is comfortable is rarely profitable." - Robert
Arnott
How do I strike a balance between potential reward and risk when
investing in the stock market? How does the law of supply and
demand relate to the stock market?
Supply and Demand:
One of the most basic concepts of economics is Supply and
Demand. These are actually two separate concepts, but they are
almost always talked about together. Supply and demand affects
almost everything you do. Demand is the desire and willingness to
purchase something. The people that own stores are always very
interested in what people are willing to purchase. For example,
when you go to GameStop and look for a certain game, you are
telling the store that you are willing to buy that game. If they run
out of the game, but more people keep asking for it, then they
know the demand is going up. Businesses need to sell what
buyers want and shoppers must be willing to spend their money.

This is a Brain Pop video that explains the stock market.

https://www.brainpop.com/socialstudies/economics/stockmarket/
Risk Taking Survey:
The stock market by its very nature has a huge degree of risks.
No one is going to give you your money back if the company you
invest in does not make money. However, if you do your
research, then there could be big rewards when a company does
extremely well. According to an article in the Chicago Tribune It's
important for parents to keep a kid's personality and style in mind
when encouraging them to take healthy risks. For those students
who are more adventurous with their risk taking it is very
important that their parents place strict limits on their investing.
The Chicago Tribune also says that Parenting experts say that
children who are encouraged to take reasonable, safe risks
with the guidance and support of their parents as they leave their
comfort zone tend to grow in confidence, are willing to make
mistakes and use each failure as an education. Teaching
children to take a risk is going to be a shift in their mindset for
some.

VISUAL TO USE

What will students

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

What will students

be able to DO as a
result of this
lesson?

II. PRE-PLANNING
Students will understand the law of supply and demand
with respect to investments.
Students will understand the New York Stock Exchange,
and the Nasdaq Stock Market
Students will understand stock ownership, weighing
expected benefits against expected costs.
Students will describe the risk that a companys owners
assume when the business introduces a new product
Students will describe strategies for stock selection as
they identify factors that might result in greater benet
than cost.
Students will analyze stock choices and identify the
appropriate stock selection strategies

HOOK
Describe how
you will grab
students
attention at
the beginning
of the lesson.
BE
CREATIVE.

INSTRUCTIO
N
Explain Stepby-step 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.

III. PLANNING
Check badge and Ringing of Bell
Ticket In the Door Students will enter a partitioned work area to
use provided magazines, ads, newspapers, to find and cut out an
item or company they know their family frequently purchases. (back
counter area) (this would be similar to the preview experience before
a ride at Disney) They will glue those tickets to a tri-fold board.
They will then use different color pens to write a response to a
question: Why might looking at items we regularly purchase be a
starting point for what to invest in within the stock market? (7 minutes)
TIME: 75 minutes
Divide class into groups, then they will be given 5 minutes to come up
with a Team Name, Logo. Team name and Logo will be displayed on
poster.
Who Are You? (Survey on type of risk taker) - Students will
share results within groups after they tally their results and
determine what type of risk taker they are. (5 minutes)
Vocabulary Graffiti Wall (7 minutes) ownership: possessing
something. parent company: A business that owns and
controls another company. profit: a financial gain, especially
the difference between the amount earned and the amount
spent in buying, operating, or producing something.
competition: the person or people with whom one is competing.
supply and demand: the amount of a commodity, product, or
service available and the desire of buyers for it. NASDAQ: In
1972, NASDAQ stood for National Association of Securities
Dealers Automated Quotations. NASDAQ was founded in 1971
by the National Association of Securities Dealers (NASD),
which divested itself of NASDAQ in a series of sales in 2000
and 2001.
NYSE: New York Stock Exchange; the oldest stock exchange in the
United States, and it's located on Wall Street in lower Manhattan. It is
the world's largest stock exchange by market capitalization of listed
companies ($13.39 trillion as of March 2011).
Stock Search Activity Sheet (googlefinance.com or
nasdaq.com/symbol/. This activity will enable students to begin
an understanding of searching brand names they are familiar
with and their company name and ticker symbol in the Stock
Market. Using Google Finance, students will work as partners
to search brand names to identify the company name and
ticker symbol. (7 minutes)
Periodic Table We will provide a large blank Periodic Table. As
teams identify a companys name and ticker symbol, they will put that
information on a provided card, and then place that card anywhere

they wish on the table. As the week progresses, students will be

encouraged to fill the table with more companies and their listing
information. The groups will be asked on Thursday to organize the
table and support their organization. (5 minutes) The purpose is to
get them thinking how to make a connection what the companies
have in common. (sectors)

Supply and Demand activity (10 minutes):

http://www.totally3rdgrade.com/lesson_plan_supply_dem
and.htm (We will use candy in this lesson to demonstrate
with student participation the idea of supply and demand.

What toy/products are possibly on future Horizons that could

affect an investors financial state in the stock market? Are
there any products/items they use or know of where there is a
current shortage?
Check top news events on Google Finance. What news is
on the current Horizon? They may be surprised by some of the
news, such as: Twitter is not keeping up with FB and Instagram.
Why? How could they find the root cause? What is a big concept
students could learn from this?
Stock Market Game Introduce online real life simulation
game where teams will decide together on one stock they want
to invest in and begin following the market making decisions to
purchase more stocks, trade, and/or sell. (15 minutes)
Daily ringing of the bell
ASSESSME
TIME: 15 minutes
1. Students will be asked to pick 1 of 4 corners in the room based
NT
on what they prefer: building, singing, acting, or writing
(Performance
2. They will then work within those groups to describe how the law
Task) What
of supply and demand relates to the stock market using that type of
will the
presentation. Ex: if they chose singing, they will sing a song to show.
students DO
to
demonstrate
that they
have
mastered the
content? Be
specific and
include actual
assessment
with unit
materials.
DOES THE ASSESSMENT ALLOW YOU TO DETERMINE WHETHER OR NOT THE
STUDENTS HAVE MET YOUR STATED LESSON OBJECTIVE? YES OR NO

ASSESSMENT AND INSTRUCTIONAL MATERIALS

Insert ALL materials here including Assessments and Instructional Materials.
Explicitly LIST any additional files for this lesson. Be sure that ALL materials have been
submitted for this lesson.

Strategies for Stock Selection: According to Peter Lynch, Go with what you
know. Think about what you know. What product do you really like? What is popular
among your friends? Who makes it? Do you think it will continue to be popular? If you
cant explain what the company does, then you shouldnt buy it.

Know how the company is going, the financial position of the company
Will the product be marketable in the future?
Will a large percentage of the population want this product?
Is the economy booming or slowing down?
Beware of front page stories
Determine its industry condition
Will it be affected by changes in technology?
Investigate if the company is in trouble, or could be in trouble
Searching stocks in newspaper or online: Pizza Hut stock is not listed in the newspaper
because Pizza Hut is owned by PepsiCo, Inc.

STOCK SEARCH ACTIVITY SHEET

Name ____________________________ Date______________________

Brand Name

Company Name
as Listed on
GoogleFinance

Ticker Symbol

1. Band-Aid

______________

___________

2. Betty Crocker

______________

___________

3. Cheerios

______________

___________

4. Coca Cola

______________

___________

5. Disney

______________

___________

6. Footlocker

______________

___________

7. Kellogg

______________

___________

8. Kentucky Fried

______________

___________

Chicken

9. Kool-Aid

______________

___________

10. McDonalds

______________

___________

11. Nike

______________

___________

12. Pepsi

______________

___________

13. Pizza Hut

______________

___________

14. Sony

______________

___________

15. Target

______________

___________

16. Time Warner

______________

___________

17. Tylenol

______________

___________

18. Yum! Brands

______________

___________

Who Are You?

Circle one answer for each question.
1. You are offered a chance to be part of the first colony on the moon. You:
a. ask how soon the flight leaves and go home to pack
b. agree to part of the team...if you can come home after 6 months
c. stay on Earth and enjoy breathing without an oxygen tank
2. Last month, you went to a new restaurant. Since then, you havent stopped
thinking about how great your meal was. You go back this month and the waiter
recommends the special of the day, alligator tail with artichoke sauce. You:
a. order the same wonderful meal you had last time
b. go for the special of the day
c. convince your friend to order the special, so you can try it
3. In the music store, you see a new CD. You have never heard of the group, but
the sign over the display says theyre the hottest band of the century. You:
a. buy it so you can be the first in your school to discover a new sound
b. ask the manager if theres a demo you can listen to
c. look for something by a group that you know you like
4. Youre on a TV game show, and you have just won $3,000 to decorate your room
any way you want. Now you have to decide to keep the money, or trade it for the
secret prize. The secret prize may be a rubber chicken, or it may be a check for a
million dollars! You:
a. go for the secret prize-if you dont get the million dollars, you can work on a
comedy routine with the rubber chicken
b. keep the money and plan your new room
c. do whatever most of the audience votes for you to do
5. You and your friends are at the brand new town pool. There is a very high diving
board that hasnt been tried out yet. You:
a. stick to the low diving board, showing off the cannonball skills you perfected
last summer
b. rush to be the first in line to try out the high board

c. wait until a few of your friends use it, and see what they think
6. Its the very end of the fourth quarter of the big basketball game. Your team is 2
points down, and you have the ball. You:
a. pass it to Slam Dunk Sammy, who most likely will make 2 points to tie the
game
b. pass it to Long Shot Louie, who might make 3 points to win
c. pass it to Captain Earl and let him decide who should get it
7. Your mom won a sales contest at work. The prize is a family trip to a tropical
paradise, but it has a huge volcano right in the middle of it. Theres a 1-in-500
chance that the volcano will erupt sometime this year. You:
a. agree to go to the island but promise your parents you will stay as far from the
volcano as possible
b. plead with your mother to give the trip to someone else
c. get ready to go and hope that your family will agree to camp out on the most
beautiful spot on the island-the top of the huge volcano
8. You pass Hometown Gifts and see that they just got a shipment of the newest
limited edition Beanie Beauties. Theyre selling for $50 each, with a limit of two
per customer. Regular Beanie Beauties sell for $6 each. You:
a. borrow $100 from your parents, because you believe they will be worth
$1,000each someday soon.
b. spend $12 on two of the regular ones, which may or may not be worth more
than that someday
c. pass up on the Beanie and buy a CD that you know youll enjoy
9. You go to the movie theater with your friend to catch the new horror movie youve
both been dying to see for weeks. Unfortunately, you mixed up the times of the
show and you arrive an hour late. You:
a. go to the movie your friend insists shes heard is good, even though it looks
weird and boring to you
b. spot a cool looking poster for a new movie that neither of you has heard of,
but decide to go anyway
c. buy tickets for the movie you and your friend saw a couple of weeks ago; it
wasnt that great, but you could sit through it again
10. Its almost time for grade to be in, and your teacher asks you to stay after class.
At this point, your math grade averages out to a C+. Your teacher gives you the
following options. Which will you choose? You:
a. can take a pop quiz on the spot, and if you do well, you can bring your grade
up to a B+, but if you do poorly, your grade will fall to a Cb. can agree to take home some extra credit work that cant hurt your grade but
could bring it up to only a Bc. can retake one of the tests you bombed, which could bring your grade up to a
B or down to a C
YOUR ARE A:

Risk Lover

Moderate Risk Taker

Risk Avoider