Business Lesson 2 Birth and death of a star Aim: to understand what shares are, where they come from, and why they exi

1. Business Lesson 2 Birth and death of a star Aim: to understand what shares are, where they come from, and why they exist What are shares? Where do they come from? Lesson 2: Birth and death of a star

2. For starters… • How well do you think your shares did last week? Do you think your investment paid off? • Extension: think back to the week’s news. If you could go back in time who would you have invested in? Why? Lesson 2: Birth and death of a star

3. By the end of today, you will be able to • explain what shares are and why they exist. • explain share listing and de-listing. • come up with a trading strategy which takes share (de-)listings into account. Lesson 2: Birth and death of a star

4. Remember your mission • Check how well you’ve done this by checking your Portfolio and Mini-League on Celebdaq. To make as much money as possible by investing imaginary money in celebrity shares. Lesson 2: Birth and death of a star

5. So what’s a share? • Last week we bought some ‘celebrity shares’. Before we continue trading in shares we want to know what shares are! Lesson 2: Birth and death of a star

6. From pizza shares to business shares • Imagine you buy a pizza with 3 other friends. You each pay a fourth of the pizza and so you each get one of four slices. Lesson 2: Birth and death of a star

7. From pizza shares to business shares • Many companies are owned in the same way. They are split up into thousands of ‘slices’. These are called shares. • Each share entitles you to a part of the company’s profits. This is called the dividend. • Why do you think companies would sell shares? What do they gain? Lesson 2: Birth and death of a star

8. From business shares to celebrity shares • Celebrities cannot be owned and they don’t make profits… so these imaginary shares pay dividends that are based on press coverage. • Why have shares in celebrities? For the fun of it and to help us learn about company shares. Business shares and celebrity shares behave in similar ways! Lesson 2: Birth and death of a star

9. Where do shares come from? • In the business world, they are offered to potential buyers in an event called an initial public offering (IPO). • In Celebdaq, the same happens… but you have a say in who gets listed (put on) and de-listed (taken off). • On the Celebdaq homepage go to the Traders’ Choice Vote: + list. Discuss who you would like to see listed next week and vote for them! Go to – de-list. Vote for the celebrity you would like to see booted out! • Keep track of the Traders’ Choice. If you own a de-listed share you will lose your investment. Lesson 2: Birth and death of a star

10. Extension activity • Complete the worksheet on listing and de-listing. This will help you understand shares better. Lesson 2: Birth and death of a star

11. Invest! • Use your homework research to invest in 3 celebrities you think will make you the most money in the coming week. You can choose whether to keep last week’s investments. Lesson 2: Birth and death of a star

12. Homework Keep a close eye on the celebrities you chose to list/de-list, and on the broader celebrity market. Lesson 2: Birth and death of a star