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Stock Market Basics
(log on to http://teacherweb.com/MI/Cheboygan/MrOstman/hf7.stm for hyperlinks)
PART A
1.) Go to the following website and complete parts one and two of the lesson http://www.econedlink.org/lessons/index.cfm?lesson=EM292Read this handout for the main directions. Do not download the worksheet because you have it right here!
For part one, define the words below on your handout by rolling the mouse over the term on the above website. Write down the definition on your paper for use during the stock market competition.
NYSE Made Easy
Part 1: Definitions
Return to the website for definitions to help you fill in the following terms that can be found on a stock ticker.
Last:
Change:
Volume:
Day High:
Day Low:
Open:
Previous Close:
Bid:
Ask:
52 Week High:
52 Week Low:
P/E
Earnings /
Share
Dividends/
Current Div.
Yield
# Share
Outstanding
Exchange
2.) For part two, fill in the current data for General Electric and Whirlpool. Use the link suggested.
Once at this site, type in the ticker symbols in the field labeled “Symbol(s):” and then click GO. Record the proper information in the following chart:
Conclusion
2.) Check yourselves with the quiz in the conclusion. Write down your score. Correct number out of 5:The final part of this section is to answer the following questions:
a.) Based on all of the information you have collected on General Electric and Whirlpool, which stock would you invest in today? Why?
b.) How does a dividend affect a stock’s yield?
c.) As an investor, do you want a stock to have a high or low PE ratio?
PART B
Go to http://www.econedlink.org/lessons/index.cfm?lesson=NN333
All three parts must be completed:
Part one- Scroll down (you may read or skim as you scroll) to Exercises and then click on Interactive Activity
a) In the first graph, which company did you pick? WHY b.) In the second graph, did you buy it or sell it? WHYc.) In the third graph, which company did you pick? WHY
Part two- (Scroll to the top of the page to click on Part 2) Scroll down (you may read or skim as you scroll) to “Are You Ready to Make Millions?” and then click on Interactive Activity
a.) What did your $100 grow to?
***Make sure you read “Review of the Key Statistics” before continuing!
Part Three- Scroll down (you may read or skim as you scroll) to “Are You Ready to Make Millions (Again)?” and then click on Interactive Activity
a.) What did your $1000 grow to?Assessment Activity:
Answer the following questions:
1. If a company reported $2 in earnings last year and its’ PE ratio is 15, what is its stock price?2 . Assume the average PE ratio for the stock market is 28 and dividend yields are less than 2%. In the recent past, the PE ratio has averaged around 18 and the dividend yield was 4%. The Federal Reserve begins to raise interest rates. Based on these facts, do you think stock prices will rise, stay the same or fall? Why?3. Use the "Stock Picking Bubble Map" to find some of your companies for the next question.4.) Go to http://www.bigcharts.com and research five stocks you would like to buy when we start our stock market project
Stock Picks
(1)
(2)
(3)
(4)
(5)
52 Week Hi & Lo
Stock Sym
Div
YId%
PE
Vol
Hi
Lo
Close
Chg