FOCUS QUESTION FOR THIS SECTION
How do investors evaluate and select stocks for their portfolio?
Section 2: Stocks
SECTION DESCRIPTION
In these lessons, students begin the process of choosing a stock. They first find out how to determine what it costs to own a stock and how they might go about choosing a stock. Choosing a stock includes reading financial information, researching simple information, and comparing the stock to its peers. The lessons conclude with students constructing a portfolio based on what they have learned.
A stock is shared ownership in a company. Investors make money on as stock by either holding on to the stock and receiving a share of the company’s profits (dividends) or by selling the stock at an increased in value of the stock over time.
LESSON OBJECTIVES
Read a stock table. Identify the terms used in a stock quote.
LESSON OBJECTIVE
Interpret stock quotes.
Compare stocks for competing companies within an industry.
LESSON OBJECTIVES
Apply information from a stock index to draw conclusions about purchasing that stock.
LESSON OBJECTIVES
Research financial news stories published about current companies and analyze factors that are likely to affect the stock price of those companies.
Examine a financial news story and deduce whether the company’s stock price will increase or decrease as a result of the story.
LESSON OBJECTIVES
Create a stock portfolio based on an investor’s financial needs.