Daily Lesson Plan Teacher: TJ Wilson Class: Business Education 11/11/02 The Stock Market Game
Set Have the students quickly think of the major companies in the U.S. and the possible outcome if they were to invest in these companies. Discuss this aloud with the class.
Measurable Performance/Outcome Students will be able to demonstrate the proper method of investing in the stock market. They will also be able to buy and sell stocks amongst each other in a pretend market setting.
Steps: • The students will split up into groups of approximately 3-5 people. The groups will spread out around the room. • The students will be given a handout with directions of the activity. ACTIVITY
Cont. 3. Each group will then be given $25,000 in fake money. This money will be used to purchase stocks.
Cont. 4. Walk the class through the directions on the handout. A. Students will do the research on the stock figures from the past 3 days. B. They will observe & research each stock over this period. This will give them the information needed to decide on what stocks to purchase.
Step 4 cont. C. Each group will then confer amongst each other & decide on what stocks they shall purchase with their $25,000. They will have a total of 10 minutes to decide on their initial purchases.
D. The groups will then be given Day 4’s stock figures. These are the stock prices that they will purchase stocks at. E. Each group can use as much of the $25,000 as they would like.
F. To purchase stocks, they must come to the Stock Broker (teacher) and purchase what they want. The broker charges $100 for each purchase, sale or trade of stocks. G. The stock broker will be open for 5 minutes or until they are done buying stocks. If they are done soon, they will continue sooner. The broker will not stay open past the 5 minute limit.
Step 4 cont. H. When all the purchases are done, each group will be given the next day’s figures. They will figure up their profit or loss. 1. If they have a profit, they can either re-invest or take the profit and re-assess their stocks. 2. If a loss occurs, they can stay in with the same stock in hopes of a gain in the future or take the loss and get out.
After each group assesses their situation, they can purchase, sell, or trade stocks with the broker. They can look at the day’s stocks and decide what they will do for the next day. • J. Each group will be given the next day’s stock figures after decisions are made and they go through the broker.
Activity cont. Step 5: Review the rules one more time and then split the class into their groups and hand out the necessities to start.
MATERIALS 10 days’ worth of stock figures; $25,000 in fake money for each of the groups; A calculator for each group and the stock broker; a timer; scratch paper to do research and figuring on.
GUIDED PRACTICE The teacher will be helping the students in the buying and selling of stocks. Also, the teacher will be walking around giving help during the research stage at the beginning.
INDEPENDENT PRACTICE Refer to steps D-J in the activity section. Steps G-J will be repeated over a 7 day period. At the end of the period each group will assess the situation & sell back their stocks to gain profit or pay off their loss.
CLOSURE At the end of the activity, each group will assess how their decisions turned out. The class will discuss, as a whole, how their group’s decisions were profitable or not. They will talk about how they went about making decisions on what stocks to purchase and how much to purchase.
Assessment Students will be assessed on the idea that they can show that they did the necessary research to pick the stocks to purchase. They must show a record of their gains and losses. They must show a proper ending figure considering all the payments and cash receipts. (This will count for minimal points in the grade.)
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