Introduction to Stock Market A WebQuest for Stock Matters Enrichment

1. Introduction to Stock Market A WebQuest for Stock Matters Enrichment Designed by Jarrod Gamaufjgamauf@jgsc.k12.in.us

2. Introduction Home | Task | Process | Evaluation | Conclusion | Standards | Resources |Teacher Notes American Fidelity Inc., a respected investing company, is looking for a young, ambitious go-getters to manage their newest mutual fund, American Fidelity Large Cap Growth and Equity Fund (AFGEX). These positions draw a $250,000 salary with many other benefits and can make one very wealthy. To prove your abilities to run this fund, you must first prove you can consistently make money in the stock market. You will join a team of fellow investors, and the team that makes the most money a eight-week period will win these coveted job openings. Good luck!! Stock Market Intro Created by Jarrod Gamauf August 20, 2004

3. The Task Home | Introduction | Process | Evaluation | Conclusion | Standards | Resources |Teacher Notes In this activity, you will invest in a stock market game based solely on your decisions you make based on research. Your ultimate goal is to make the most money you can in the short run. • To achieve your goal, you will need to complete the following tasks: • Learn basics stock market language, procedures, and the stock market game rules. • Research at least 3 stocks in your stock market sector to recommend to your group members for purchase. • Decide how your $50,000 seed money will be spent in the stock market based on your member’s research. • Create weekly summaries of your stock’s activities with updates on current business news and buy/sell recommendations. Stock Market Intro Created by Jarrod Gamauf August 20, 2004 • Describe crisply and clearly what the end result of the learners' activities will be. The task could be a: • problem or mystery to be solved; • position to be formulated and defended; • product to be designed; • complexity to be analyzed; • personal insight to be articulated; • summary to be created; • persuasive message or journalistic account to be crafted; • a creative work, or • anything that requires the learners to process and transform the • information they've gathered. • If the final product involves using some tool (e.g., HyperStudio, the Web, video), mention it here. • Don't list the steps that students will go through to get to the end point. That belongs in the Process section.

4. The Process Home | Introduction | Task | Evaluation | Conclusion | Standards | Resources |Teacher Notes Before one can begin investing, you need to first learn about stocks and market procedures. To do this, you will need to form groups of 3, each eventually focusing different sectors of the stock market. Your group will need to complete a series of questionnaires on basic stock knowledge as individuals before you can start the research process. Print of this Stock Market Checklistto help you track your progress towards the completion of this activity. 1st Section: What is the stock market? 2nd Section: Common terms of the stock market. 3rd Section: Researching to buy Stocks 4th Section: Presenting Stocks for the Portfolio (Individual project) (Individual project) 5th Section: Buying and Selling Stocks Stock Market Intro Created by Jarrod Gamauf August 20, 2004

5. 1st Section:Stock Market Introduction Process | 2nd Section| 3rd Section | 4th Section | 5th Section In this section, you will be introduced to the basics of the stock market and how businesses utilize the stock market to make their companies grow. • Read the following two information sites about the stock market and its operations. • 2. Print and fill out the basic stock market operations worksheet. Source 1 http://www.factmonster.com/spot/stockmarket.html Source 2 http://www.nyse.com/pdfs/nyse_chap_02.pdf Stock Market Intro Created by Jarrod Gamauf August 20, 2004

6. 2nd Section: Vocabulary of Stock Trading Process | 1st Section| 3rd Section | 4th Section | 5th Section To successfully trade in the stock market, you would need to tell the broker your orders using his vocabulary. Also, an investor will come across many new market phrases and financial words when attempting to gather research about different stocks. This section you will need to learn some financial vocabulary, so you can correctly play the stock market. 1. Go to the following web site and define the words on the Stock Market Lingo Worksheet. Source 1 http://www.investopedia.com/categories/tradingterms.asp Source 2 http://www.investorwords.com/ Stock Market Intro Created by Jarrod Gamauf August 20, 2004

7. 3rd Section Process | 1st Section| 2nd Section | 4th Section | 5th Section Before you purchase any company’s stock, you should conduct research on that company to determine if you think it will make you money. Below is a sample of someone who has researched a company and is using that information to decide on whether to buy or sell a stock. Read through different types of researchavailable to the investor and how it could affect the stock market by following the research example below. To continue reading, look forNext >at the top of the reading. Research Example http://moneycentral.msn.com/investor/research/wizards/srw.asp?Symbol=psun Stock Market Intro Created by Jarrod Gamauf August 20, 2004

8. 3rd Section Process | 1st Section| 2nd Section | 4th Section | 5th Section Now comes the time you have been waiting for! You are to research at least 3 stocks for your team of investors to consider purchasing by using various sources on the next slide. Then take this research and compile it into a brief report that can be used to compare one stock to another. Here’s How to do Group Research: • Get into a group of three and give yourselves a team name. • Assign each team member the stock research responsibilities of the 3 made-up stock sectors. • (click for sector description) • a. Business/Financials b. Service c. Technical/Science Stock Market Intro Created by Jarrod Gamauf August 20, 2004

9. Business/Financial Sector For this stock game, we will place any business that is involved in creating a product to sell to other businesses in the business/financial sector. Examples include car makers, companies making household goods, and any other business not selling products directly to the public. Financial stocks include the stock of major banks, investment corporations, and other similar institutions. An investor can purchase mutual funds in this sector. Stock Market Intro Created by Jarrod Gamauf August 20, 2004

10. Service Sector For this sector, we will place any business that is involved selling products directly to the consumer. Examples of these stocks include retail stores, restaurant chains, utilities, and airline businesses. Health care and insurance stocks are also apart of this category. Another big area with these stocks is the entertainment sectors of our economy. Stock Market Intro Created by Jarrod Gamauf August 20, 2004

11. Technical/Scientific Sector In this sector, we will place any business that is involved in creating new technologies and the parts for technology. Most of these tech stocks are commonly found on the NASDEC. However, research companies and other drug companies are located in this sector. Science research companies are also found here. I will also include any defense industries in this category. Stock Market Intro Created by Jarrod Gamauf August 20, 2004

12. 4th Section Process | 1st Section| 2nd Section | 3rd Section | 5th Section Now it is time for your group to choose your stocks to purchase for the stock market game. Make an informal presentation to your group members on your three stock choices. Below entails how you should present your stock search. Each person should report your research to your group. See below for help. • Present the name of your company with its symbol. • Report the research (fundamentals, charts, earnings,etc.) you gathered about that company to your group. • Repeat steps 1 and 2 until you have reported about all three companies you researched. • Recommend to the group 1 or 2 of the stocks for your group’s final portfolio. Tips to help you in presenting Stock Market Intro Created by Jarrod Gamauf August 20, 2004

13. 5th Section Process | 1st Section| 2nd Section | 3rd Section | 4th Section Now your ready to start buying your stocks for your portfolio. Before you begin deciding which stocks to purchase, review the Rules of the Stock Market Game. You have $50,000 dollars to spend in the Stock Market. Decide what stocks you want and how many. Prepare the purchase papers for stock and make your purchase for your teacher. Your only job now is to keep monitoring your stock’s progress and keep up-to-date on the stock’s performance. Details below will tell you how to accomplish this task. • Decide which and how many stocks your group will purchase. • Fill out your Order Sheetfor each stock and turn it in. • Monitor your stock’s progress daily. Use the website below to do this. http://www.msfinancialsavvy.com/stockQuotes.html Stock Market Intro Created by Jarrod Gamauf August 20, 2004

14. 3rd Section Process | 1st Section| 2nd Section | 4th Section | 5th Section 2. Research at least 3 companiesin your sector that could possibly be bought for your group’s portfolio. Please read what types of stocks can be purchased in the Rules of the Stock Market Game. Be sure to record your findings, so you can present them to your group members. Tips to help with your group research Some Research Sites 1.http://moneycentral.msn.com/investor/research/wizards/srw.asp?Symbol=psun 2. http://www.morningstar.com/ 3. http://money.cnn.com/markets/data/index.html 4. http://home.flash.net/~hesler/ Stock Market Intro Created by Jarrod Gamauf August 20, 2004

15. Evaluation Home | Introduction | Task | Process | Conclusion | Standards | Resources |Teacher Notes You are evaluated based on a variety of things throughout the webquest. Each evaluation tool is indicated by a dark cyan color. Below is a list of the different rubrics used throughout the process sections of this webquest. • Evaluation of Stock Operations Worksheet (must be 100% correct) • Evaluation of Stock Market Lingo Worksheet (must be 100% correct) • Rubric for Evaluating Biweekly Market Summary Report • Rubric for Evaluating Final Group Stock Market Report Stock Market Intro Created by Jarrod Gamauf August 20, 2004

16. Conclusion Home | Introduction | Task | Process | Evaluation | Standards | Resources |Teacher Notes Good job! You participated and completed a task that many people never understand throughout their adult lives. Hopefully with your newfound knowledge of the stock market, you might have the confidence to participate in the world’s largest and exciting financial market. Stock Market Intro Created by Jarrod Gamauf August 20, 2004

17. Standards Home | Introduction | Task | Process | Evaluation | Conclusion | Resources |Teacher Notes 7.2.2 Calculate the percentage increase and decrease of a quantity. 7.6.1 Analyze, interpret, and display data in appropriate bar, line, and circle graphs and stem-and-leaf plots and justify the choice of display. 7.6.2 Make predictions from statistical data. 7.7.1 Analyze problems by identifying relationships, telling relevant from irrelevant information, identifying missing information, sequencing and prioritizing information, and observing patterns. Stock Market Intro Created by Jarrod Gamauf August 20, 2004

18. Resources Home| Introduction | Task | Process | Evaluation | Conclusion | Standards |Teacher Notes Student Resources Picture Resources • www.mubeamachines.com/ • www.cnnfn.com/2003/ 12/19/pf/autos/f150_safety/ • www.firstbook.org/ partners/ • www.nccjmidlands.org/ events.html • www.google.com • www.stanleylondon.com/ crosshatching.htm • www.ncvei.org/ sponsors.asp • www.cnnfn.com/.../news/ companies/walmart_time/ • www.aisc.it/2002/ifmad/ ifmad_abstractmain.htm • www.buy-watches.com/ wdata/disney.htm • www.lmaeronautics.com/ palmdale/lmla/ • www.lateral-thinkers.co.nz/ • http://www.nyse.com/ • http://www.factmonster.com/spot/stockmarket.html • http://www.nyse.com/pdfs/nyse_chap_02.pdf • http://www.investopedia.com/categories/tradingterms.asp • http://www.investorwords.com/ • http://moneycentral.msn.com/investor/research/wizards/srw.asp?Symbol=psun • http://www.msfinancialsavvy.com/stockQuotes.html • http://moneycentral.msn.com/investor/research/wizards/srw.asp?Symbol=psun • http://www.morningstar.com/ • http://money.cnn.com/markets/data/index.html • http://home.flash.net/~hesler/ • http://www.nyse.com/ Rubric Resources http://rubistar.4teachers.org/index.php Stock Market Intro Created by Jarrod Gamauf August 20, 2004

19. Teacher Notes Home | Introduction | Task | Process | Evaluation | Conclusion | Standards |Resources This webquest has been designed specifically for my enrichment class I teach for thirty minutes a day. Although a teacher could let the students run through the webquest on their own, most information on the stock market is complicated for adults, not to mention the students. You may have to facilitate the students as they work through the webquest in order make sure the students move through this activity in a timely manner. This may include question/answer sessions, verbal reviews, and completing examples of the more challenging parts of the game like stock purchases and money calculations. One can always simplify the activities by reducing the size and time of the game. Also modification of the rules can simplify this stock game. I modify the stock game because of class times do not correspond to the stock market trading hours. Each teacher should decide the depth they wish to pursue this game, and as need be, eliminate unneeded sections from the modified game. There should be at least a two week preteaching phase where sections 1-4 are completed, and examples of reports are given to the students. This will help to eliminate student questions during the game. These modifications can help make this webquest go much more quickly. Stock Market Intro Created by Jarrod Gamauf August 20, 2004

20. Tips on your Presentation • Present all companies using common research; this way all companies can be compared to each other on an equal basis. • Be prepared to your first choice from the companies you researched. You know more than your team; be confident in your choice. • Present your three stock choices as a sector. Present them one right after another. • Before choosing which stocks to buy, hear all of your team members’ presentations. Allow for time to discuss which is best for your portfolio. • After the presentations, agree on which stocks to buy, how many to buy, and what price you want to sell the stocks.

21. 5th Section Process | 1st Section| 2nd Section | 3rd Section | 4th Section You will need record certain data from a bimonthly report on your stock’s progress. You will collect data on the stock at the beginning of each day and, if you would like, generate graphs about it progress using Excel. Be sure to have a backup stock if a stock performs terribly, and sub the backup in its place. • Enjoy watching your stock go up! Or down>>>> • Record the most important data on a Biweekly Market Report. • Every two weeks, you need to file a Market Summary Report to your group and your teacher. Follow the prescribed template below. Biweekly Market Report Template 4. The last week the group will need in a final report the group’s overall successes or failures. This activity completes this webquest. Final Group Stock Market Report Template Stock Market Intro Created by Jarrod Gamauf August 20, 2004