The Stock Market WebQuest …Risks and Rewards

1. The Stock Market WebQuest…Risks and Rewards Jane Pearson

2. Introduction Buy Low...Sell High! Congratulations! You just inherited $10,000 but you aren’t quite sure what to do with it. Your friends tell you to spend it and your parents tell you to save it. You think to yourself for a second and a light bulb goes off. Maybe you can apply what Mrs. Pearson taught you about stocks and invest it! Learn how to become financially smart. Invest today so you can be a millionaire tomorrow! Just follow the Task link above…

3. Task • You and your partner’s task is to research various companies and look up information on their stocks. You will then choose 10 stocks from at least 5 different industries. You will have $10,000.00 to spend, so you will need to determine how many shares you will buy of each stock. You must use all your money. Track your stocks over a 10 day period and report your results using an Excel spreadsheet. Lastly, create ten 2-D line charts and a 3-D column chart to visually display your gains or losses. • Ready to start? Just follow the Process link above…

4. Process Here are the step-by-step directions Use the Internet to search for companies that you are interested in and find their ticker symbols. (1 day) Based on your search, choose 10 companies to invest your $10,000.00 in. Look at the price per share and allocate your $10,000.00…try to spend exactly that amount. Create a spreadsheet with the following columns: Stock, Symbol, Industry, Shares, Initial Cost per Share, Current Value on Day 1, Price Per Share on Day 2, Current Value on Day 2, Price per Share on Day 3, Current Value on Day 3, (follow pattern all the way through day 10), Gain / Loss, Rate of Return. See sample layout. (2 days) In your spreadsheet, set up formulas that calculate Current Value on each day, the Gain / Loss, and the Rate of Return. Check your stocks daily over a ten day period. Record the needed information on your spreadsheet. (10 days) To illustrate if you made or lost money, turn the data you collected in your spreadsheet into charts. You should create a 2-D line chart to depict each company’s gain or loss over the ten day period. (10 graphs). You should also create a 3-D clustered chart representing all 10 companies in one chart. This will help you analyze the data. (1 day) Be prepared to answer whether you gained or loss money. Also, consider the question, if given the chance, how would you invest your money differently? Helpful Websites are listed in the Resource link above…

5. Resources How will you be graded? Click the Evaluation link above… Researching Companies: Yahoo Finance NYSE MSN NASDAQ Excel Tutorials: Excel 2007 Microsoft Training Excel Tutorial Sample Spreadsheet: Stock spreadsheet - layout

6. Evaluation Click hereto view the rubric What was the point? Click on Conclusion above…

7. Conclusion Having completed this WebQuest, you should have a better understanding of the difference between investing and saving. You should also understand how to pick stocks and track stocks and apply this knowledge to future investments. Also, your Excel skills should have improved! Be prepared to discuss the following questions with the class: What do the terms ticker symbol, P/E ration, 52 week high/low,and volume mean? Did it benefit you to have a diversified portfolio? Why do stock prices change daily? What affects them? More info…Click the Additional link above

8. Additional This WebQuest was created by: Jane Pearson TEC 942 - Implementing Technology Integration Credits: Professor George Smith, Fresno Pacific University