Business 10: Stock Market Challenge

A stock is a share in the ownership of a company, and it represents a claim on the company’s assets and earnings. Public corporations allow any investors to buy shares in their company via a stock market exchange. Investors can earn money on a stock through dividend yields (profit sharing) and capital appreciation (equity reselling); however, investors can also lose money through poor investments. For the next few weeks, our class will be trading stocks on the real-time stock exchanges (NYSE, NASDAQ and TSX) using virtual money. 

Task 1: Background on Stocks

  1. Review the Stock Basics articles on Investopedia. By reading the articles, students will be able to:
    • Define stocks in their own words.
    • Identify advantage of equity financing (e.g. stocks) over debt financing (e.g. bonds)
    • Compare the two types of stocks: common vs preferred.
    • Identify the two major stock exchanges in the United States and the type of companies in each one.
    • Understand what causes prices to increase (or decrease).
  2. Read the section called “Required Vocab” on Stock Lesson (pp.1-4) on HowTheMarketWorks.com. In addition to earlier vocabulary, students will be able to define:
    • entrepreneur
    • initial public offering (IPO)
    • stock exchange
    • stock broker
    • sector

Task 2: Research on Your Stocks

  1. Read the section called “Buy What You Know” on Stock Lesson (pp.5-7) on HowTheMarketWorks.com.
  2. Complete the table on page 7 by choosing at least 10 companies whose products you might purchase.

Task 3: Practice Trial

Before the actual contest, students will have the opportunity to practice buying and selling stocks based on the rules:

  • Initial Capital: $10,000
  • Stock Exchanges: NYSE, NASDAQ, TSX
  • Min. Number of Companies: 3
  • Min. Number of Transactions: 5
  • Commission Fees: $25 per transaction
  • Length: 1 week
  • Link: TBA

Task 4: Business 10 Stock Market Challenge Contest

  • Same as above unless noted below.
  • Length: 2 months (ends Feb. 13)
  • Link: TBA
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