Lesson Plan Template Instructor: Tonya Boustead Course Title: Dollars & Sense Date: Specific Topic: Stock Market Reading Assignment: Brass Magazine Article Stock Talk Performance Objectives: After completion of the lesson, students will be able to: 1. Understand vocabulary that goes with deciphering the stock market 2. Learn necessary information to research stocks CCSS Standards: Determine the central ideas or conclusions of a text; trace the text s explanation or depiction of a complex process, phenomenon, or concept; provide an accurate summary of the text. Determine the meaning of symbols, key terms, and other domain specific words and phrases as they are used in a specific scientific or technical context relevant to grades 11 12 texts and topics. [Reading ES] VOCABULARY Assessment Turn in completed Cornell Notes Materials: Brass magazine article Stock Talk Cornell notes template Procedure: Entire Class: Introduction and Method of activating prior knowledge Explain the process of using Cornell notes
Method of setting purpose Introduction to the stock market and to our stock market project Individual: Read Stock Talk article Complete Cornell Notes Entire Class: Discuss article including topics covered in the Cornell Notes Application of Material: Introduction to the stock market and what we will be covering in this class regarding investing. Extension Questions: 1. What costs are associated with buying stocks? 2. Define broker and brokerage. Which option would you choose? Justify your answer. 3. What steps should you take before deciding to invest in the stock market? 4. How would you go about buying a share of stock? Accommodations Needed:
Stock Talk: A beginner-friendly guide to the stock market brass http://www.brassmagazine.com/article/stock-talk-beginner-friendly-guide-stock-market Page 1 of 4 3/26/2013 Interested in becoming a brass contributor? Click Here Login Register Feedback About [ young today, rich tomorrow ] topics columns issues blog order Search... Home» Articles» Winter 2006» Stock Talk: A beginner-friendly guide to the stock market Stock Talk: A beginner-friendly guide to the stock market By Tina Dressel on October 30th, 2006 Investing, Stocks, Investing Originally appeared in: Winter 2006 Starting Line The stock market. It's mystifying. It's up. It's down. Some guy named Dow wants to trade, Jones needs a quote, and everyone wants a broker. Lost yet? You're not alone. To understand what owning stock is all about, you've got to know the basics first. Keep reading. We'll have you typing "ticker symbols" into that "quote" box on MSN in no time. Stocks A stock is essentially a portion of ownership in a corporation. A corporation first sells shares of stock to the public at an initial public offering (IPO) to help raise money for starting or continuing their business. Most of us know that stocks are sold on the stock market, but where exactly is that? The market Not just on Wall Street anymore, today the stock market is an entity you can access electronically from almost anywhere. There are actually many stock markets, but people generally consider "the stock market" to be the system that encompasses all of them. Within this organized system, the trading (buying and selling) of stocks occurs through listed stock exchanges like the New York Stock Exchange and the American Stock Exchange, as well as over-the-counter (OTC) markets such as the NASDAQ. To give investors a little perspective, there are stock averages that gauge the performance of a particular group of stocks. The most well-known are the Dow Jones Industrial Average, which tracks 30 stocks; the S&P 500, which follows 500; and the Russell 2000, which tracks (you guessed it) 2,000 companies. Not so confusing is it? When average prices show an upward trend it is commonly referred to as a bull market. A bear market, on the other hand, demonstrates weakness in stock prices. New investors beware: There is no fail-safe way to predict the market's upward or downward trends. What is always a safe bet is putting a high priority on the quality of your investments by researching thoroughly. When you are ready to buy, you will usually need a broker. Despite their name, they are actually supposed to help you make money. Brokers There are two options available to help you execute stock trades. A full-service broker offers an array of services, including financial planning and advice. These services are usually anywhere from fifty to hundreds of dollars per transaction. Discount brokerages buy and sell for a much smaller price tag, but without the advice. With discount brokerages, you select stocks on your own and make trades online or over the phone. Understand this basic distinction: brokers are Considering a Roth IRA Surfing Water MOST POPULAR Inventing Opportunity: Is your idea patent worthy? Meet the ProduCEOr: 24-year-old entrepreneur on the business of filmmaking I'm Falling For Debt Smart School Supplies Sock Away Savings Today Keeping It Green: 10 ways to save money and the planet City Inc.: Top dollar towns Not so Top Secret Sites MOST COMMENTED
Stock Talk: A beginner-friendly guide to the stock market brass http://www.brassmagazine.com/article/stock-talk-beginner-friendly-guide-stock-market Page 2 of 4 3/26/2013 people, brokerages are places. A broker is more expensive because you are actually talking to someone, while using a brokerage, such as E*Trade or TD Ameritrade, is automated and around $15 per trade. Buying and selling stock is a little more dynamic than walking in a store and paying what's on the price tag. You've got to be able to give your broker, whether it's a person or a computer, some crucial information in order to make a trade. Trading There are different numbers associated with the price of stock. The bid price is what you, the potential buyer, might offer to pay. The ask price, on the other hand, is the amount for which the owner would be willing to sell their shares of stock. The difference between these two values is the spread. Through a broker, you will choose between a limit order and a market order for your stock transaction. A limit order allows you to specify at what price you would buy or sell a stock. A market order allows the broker to buy or sell stock at the best current price. Inputting a ticker symbol, a set of letters that identifies the company, as well as the price you are willing to pay, will allow the broker to facilitate the order. Another way to buy stocks is through dividend reinvestment, and as a new investor, you might want to consider this as well. DRIPs Dividend Reinvestment Plans (DRIPs) are a convenient and cost-effective way for new investors to build their investments. DRIPs enable investors to use the dividends the company pays them to purchase more of the same stock. These investment plans are usually run directly from the company whose stock you purchase, or another company hired to manage these types of accounts. Many of these plans have very low fees. Getting in You don't need a lot of money to start investing - a hundred dollars could be enough. But you do need to research companies: Start looking up companies at websites like finance.yahoo.com or finance.google.com. Try the online business section of major newspapers. You don't even need to know the company's ticker symbol - you can look it up when you get there. Also check out The Value Line Investment Survey, which you can usually find at a library, or for a fee online at valueline.com. You will also need to continue learning about the stock market: Look up terms or concepts you don't know in online dictionaries like investopedia.com or the help section for finance.yahoo.com. Visit betterinvesting.mystockfund.com for a list of companies that are common investments. Check out a broker comparison chart at fool.com to see the various fees of four major discount brokerages. Be on the lookout for biased information as you research. It's always a smart idea to visit with financial planning services as you venture into the unfamiliar. Stock challenge Do some research and let us know what stocks are your top picks and why. We'll post the most insightful stock critiques on brassmagazine.com in February! The Bottom Line
Stock Talk: A beginner-friendly guide to the stock market brass http://www.brassmagazine.com/article/stock-talk-beginner-friendly-guide-stock-market Page 3 of 4 3/26/2013 There are thousands of companies, millions of investors, and billions of dollars in the stock market. And there's only one thing between you and your first trade - learning the basics. If you've got credit card debt or school loans to pay off before investing, start researching companies now and be an expert when you are market-ready. Sources: investopedia.com; fool.com; merriam-webster.com; yahoo.com; latimes.com; nytimes.com Post new comment Your name: * Anonymous E-mail: * The content of this field is kept private and will not be shown publicly. Homepage: Comment: * Web page addresses and e-mail addresses turn into links automatically. Allowed HTML tags: <a> <em> <strong> <cite> <code> <ul> <ol> <li> <dl> <dt> <dd> <img> <p> <br> <blockquote> Lines and paragraphs break automatically. More information about formatting options What code is in the image?: * Enter the characters shown in the image. Save Preview 2013 - brass MEDIA Inc. Privacy Policy Terms of Use Contact Us Our Network brass MAGAZINE brass MEDIA brass STUDENT PROGRAM brass TEACHER RESOURCE CENTER
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Cornell Notes Stock Talk Stocks The Market Bear Bull Brokers Full Service Discount Trading 6 Tips for rookie investors Please answer the 3 questions from the back of the article on the back of this piece of paper.