Course:

Investing and
the Stock Market
Created by: Inside you will find the one-of-
a-kind lesson plan to teach
Amulya Kattimani students all over the nation
about Investing and the Stock
Anmol Mittal Market.
Keerthan Harish
Vishva Mehta
Alisha Devji
John P. Stevens High School
Edison New Jersey
 Acknowledgement

The John P. Stevens High School’s FBLA chapter from Edison, New Jersey, had a
tremendous year by involving its members in the We Seed Virtual Stock Market. Our members
experienced buying and selling stocks while learning about the stock market without the risk of
losing real money. Everyone we spoke to, had a lot of fun participating in the We Seed.. Along
with experimenting and strategizing with WeSeed’s virtual stock, our members had the
opportunity to gain knowledge and experience through different activities we employed, such as
playing Jeopardy games, taking short quizzes, doing group projects, having open discussions,
listening to guest speakers and much more.
We, the WeSeed Stock Market team of John P. Stevens High School, would like to thank
our dedicated members and local advisor, Laura Ribinsky for allowing us to implement our
ideas. We thank Stephen Parkoff, our guest speaker, for inspiring us to carry on our project, and
providing his guidance and support. And most importantly, we thank WeSeed and its creators for
providing us a wonderful resource.
Below is the one-of-a-kind lesson plan you are looking for that will change the way
classrooms all over the nation learn about Investing and the Stock Market. We have
incorporated a variety of activities and teaching methods to keep the students most engaged,
most entertained and most benefitted. We are confident that this unique and creative lesson plan
will revolutionize the myths of Investing and Stock Market and make all of us better investors
and better share holders.

Sincerely,

The WeSeed Stock Market Team of John P. Stevens High School

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 Contents
Overview
I. Introduction
II. Lesson Plans

1. Week One: Let’s begin!

 Day One: Ice Breaker and Jeopardy Game
 Day Two: Money, Companies and Banks
 Day Three: What is the Stock Market?
 Day Four: Discuss the stock trends of familiar companies
 Day Five: What is the NASDAQ?
2. Week Two: Get to know your terms…
 Day Six: Share Prices - How are they influenced?
 Day Seven: Fundamental Terms
 Day Eight: Fundamental Terms Continued
 Day Nine: Jeopardy and Short Quiz
 Day Ten: Sign up for a WeSeed account and start building your portfolio
3. Week Three: Become a stockholder!
 Day Eleven: Class Discussion – How to judge stocks?
 Day Twelve: Governmental role in the stock market
 Day Thirteen: Value Investing and Growth Investing
 Day Fourteen: Project – Company Trends
 Day Fifteen: Jeopardy and Short Quiz

4. Week Four: Become a smart investor!

 Day Sixteen: Influential Investors - Warren Buffet, Stock Market History

 Day Seventeen: Project Presentations
 Day Eighteen: WeSeed Challenge ends – Declare Winner, Discuss Patterns
 Day Nineteen: Career Opportunities – Investment Banker
 Day Twenty: Class Feedback and Farewell Party
III. Conclusion

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 Day One
Introduction
Introduction
“Investing and the Stock Market” is a four-week course that meets for approximately forty to fifty
minutes in each session, for a total of twenty sessions. The sole purpose of this course is to acquaint
novice learners about the stock market and how it works, and to give them a hands-on experience in
investing and stock trading. Along with training beginners, this course will provide an opportunity to
trade with fake stocks that have real values.

The following lesson plan may be adapted to fit your individual requirements.

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 Day One
Ice Breaker and Jeopardy Game
I. Objectives:
 Introduce the course and explain goals to be achieved by the end of the course
 Excite class about the course
 Introduce class members to each other
 Initiate using the stock market language

II. Process:
 The teacher should introduce himself/herself and start out with asking basic questions that
students might have about Investing and the Stock Market. The questions could be as such:
 What are the first few words that come to your mind when we talk about Investing
and the Stock Market?
 Do any of you have family or friends that made fortunes by trading stocks? ... Do any
of you know those that lost huge sums of money?
 Do any of you own stocks? Or do you want to in the future?

After students have contributed some responses, the main purpose and goal of this course
should be explained. Students should be assured that they will have a better knowledge about
the Stock Market, and become smarter investors by the end of this course.

 After this introduction, a short Ice Breaker game may be played to introduce class mates to each
other.

 Finally, the class should be divided into two and a short Jeopardy game should be held. This
game should contain the basic concepts about Investing and the Stock Market. This activity will
not only introduce topics and concepts into students’ minds, but also bring a fun and enjoyable
learning environment, and allow students to get to know each other. A sample game is
attached.

III. Homework:
 Students should be asked to read and print one interesting article about Investing and the Stock
Market.

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 Day Two
Money, Companies, and Banks
I. Objective:
 Explain the fundamental concepts of money, companies and banks using examples.
 Talk about the history of money. Explain how companies and banks came into existence.

II. Process:
 Ask questions to students in order to initiate discussion or assign the following questions as a Do
Now assignment.
a. What is money?
 What happened before money was around?
 What does money represent?
b. What is a company?
 What is the difference between private and public limited companies?
c. What is the function of a bank?
 Why do we need banks? Why do we keep our money in banks?
 How do banks make money?

 Define and explain fundamental concepts. Give background information on their history. A
PowerPoint slide show may be included to outline each concept and provide notes.
 Talk about how trading occurred when bills and coins did not exist.
o Ex. Trading 10,000 apples for 5 pigs.
 Explain the difference between private and public limited companies.
 Explain why it is not only safe to keep our money in the bank, but it is also
profitable.
 Explain how banks make money by providing loans and charging interest.
 Make sure all Do Now questions are addressed and any further questions are
discussed.
 Some Fun Facts may be read out loud to the class to interest students. Some examples include:
 The first ever public company was the Dutch East India Company during 1601.
 As usually assumed, money is not made out of paper; it is three-fourths cotton and
one-fourths linen. Therefore, it does not tear easily.

III. Homework:
 Find examples of two private companies and two public companies.
 Research why we have different currencies and why foreign exchange rates fluctuate.

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 Day Three
What is the Stock Market?
I. Objectives:
 Explain the concept of Stock Market and Investing using simple examples.
 Discuss a few case studies where small companies have grown big with their investors.

I. Process:
 Explain and provide notes on the following items:
 What is a stock?
 Why should you buy a stock?
 Why does a company issue stock?
 What is the stock market?
 What is a stock index?
 What are some big stock indexes?

 Discuss about the major stocks index companies.

 Dow Jones Industrial Average
 S&P 500
 NASDAQ Composite

 Talk about small companies that have grown big because of their investors, because they issued
stocks.
 Reliance
 Infosys

 Read out loud a few fun facts such as the one below:
 The stock market was initiated in the year 1792, when 24 stockbrokers and merchants
signed the Buttonwood Agreement.

III. Homework:
 Find the top 10 companies in the current Dow Jones Index
 List 5 of your favorite companies on the stock market.

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 Day Four
Discuss the stock trends of familiar
companies
I. Objectives:
 Understand the stock trends of familiar companies and analyze why they are so.

II. Process:

 Pick three famous companies and analyze their stock trends since the last twenty years.
Examples:
 Apple Inc.
 Infosys
 Google
 Find their stocks’ graphs from different sources such as CNN Money, Google Finance, Yahoo
Finance and Daily Finance.

 Read sample Analysts reports and analyze what their predictions are based on.

III. Homework:
 Pick one company of your choice and analyze their history and stock trends.

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 Day Five
What is the NASDAQ?
I. Objectives:
 NASDAQ, named from its original “National Association of Securities Dealers Automated
Quotations” is the world’s largest stock exchange with more than 3,700 companies enlisted in it.
Explain to the students what NASDAQ does and how critical a role it plays in the world.

II. Process:
 If possible, invite a NASDAQ employee or ex-employee as a guest speaker and ask him to explain
a how a typical day at the NASDAQ is.

 Encourage students to ask the speaker any questions they might have and create a forum for an
open discussion.

 If having the guest speaker is not possible, an introductory video clip of the NASDAQ should be
watched. We used this video that we found on YouTube.
http://www.youtube.com/watch?v=BXCUe6M8BAs

 Students should be explained what happens at the NASDAQ and how they produce their data.

III. Homework:
 If there was an opportunity to have a guest speaker, share that experience with your friends and
family.
 Watch other YouTube videos on the stock market and Wall Street.

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 Day Six

Share Prices - How are they influenced?

I. Objectives:
 Understand why stock and share prices fluctuate.
 What are the different factors that affect the share prices?

II. Process:
 Assign the following Do Now assignment and initiate an open discussion.
 What latest current event articles have you read about any multinational company?

 Explain that the three major influences on stocks are

 Economic Fundamentals
 Changes in Sectors
 Market Swings

 Explain how daily news is so reflective on share prices.

 Example: The coal mine disaster in West Virginia caused company Massey Energy to fall
10% in one day of trading.

 Discuss that the earnings report, which is produced four times a year, is very influential to a
company’s stock prices.

III. Homework:
 Look for one news article in the past one week that comments about a company’s stock price.
Mention that The Wall Street Journal is a very good source.

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 Day Seven
Fundamental Terms
I. Objectives:
 Define and explain the fundamental terminology used in the world of Investing and the Stock
Market.

II. Process:
 Assign the following Do Now question and continue with open discussion.
 How would you decide if a stock is undervalued or overvalued?

 Describe what a Value Line Report is and hand a sample copy to every student. Explain the
different parts of a Value Line Report.

 Explain what Fair Price Rating is and what the P/E ratio stands for.

 Review different P/E ratios and compare.

 Explain what a dividend is and why it is helpful to pay dividends.

 Make sure students jot down notes on all of these terms as there will be a quiz soon.

 Students should be taught how to read and understand stock values from The Wall Street
Journal.

III. Homework:
 Students should review what was taught in class and come prepared with any questions or
doubts to ask in the next day’s class.

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 Day Eight
Fundamental Terms Continued…
I. Objectives:
 Further define and explain the fundamental terminology used in the world of Investing and the
Stock Market.

II. Process:
 Relate the concept of Balance Sheets to School Report Cards.
 Report cards show progress of an individual throughout the year, companies issue
Balance Sheets to show how a company is doing for the year. They show how much
debt the company owes, what liabilities they have and how much money the company
has on hand.

 Explain what Income Statements and Cash Flow Statements using examples.

 Show samples of Balance sheets, Income Statements and Cash Flow Statements to the students.

III. Homework:
 Students should review everything discussed until now and be prepared to play a Jeopardy
game followed by a short quiz tomorrow.

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 Day Nine
Jeopardy and Short Quiz
I. Objectives:
 After reviewing the main concepts, play a Jeopardy game so that students can learn and have
fun.
 After a ten minute break, hold a short written quiz.

II. Process:
 Conduct an entertaining and useful Jeopardy game.
 Students should take a short quiz after the Jeopardy.

III. Homework:
 Have fun after scoring very well on the quiz and, and be proud that you are on your way in
becoming a very knowledgeable person on Investing and the Stock Market.

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 Day Ten
Sign up for a We Seed account and start
building your portfolio
I. Objectives:
 Discuss and introduce the website WeSeed.
 Use a t a computer and a projector to display the We Seed website and give a quick
demonstration of the site.
 Explain how to keep a Daily Log.

II. Process:
 Spend a few minutes to discuss the idea of a virtual stock market and go over minor details
that may include:
 Real Stocks
 Fake Money
 Real Prices
 15 minute Delay
 Project a computer screen to show how to make an account.
 Show different companies (Ask students for examples) and show them the current price.
 Ask them if they have any ideas on which stocks will go up in the next few minutes and
discuss why.
 Distribute a Daily log sheet and explain what to track daily for the next ten days.

III. Homework:
 Students should create an account and continue trading stocks for the next ten days. The
richest shareholder will be announced and rewarded on the tenth day.

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 Day Eleven
Class Discussion – How to judge stocks?
I. Objectives:

 Discuss how to judge stocks and make smart investments

II. Process:
 Lead an open discussion on how everyone’s experience has been in trading stocks on
WeSeed.

 Talk about Warren Buffet’s rule – invest in what you know. Explain to students that they
more they know about a company, more they can trust buying its stocks.

 Emphasize that a company’s P/E ratio, its Dividend and Yield, and Balance Sheet should be
closely watched to make the best decision whether to buy its stocks or not.

III. Homework:

 Students should continue buying and selling stocks through their WeSeed account.

 One company’s stock price should be tracked for an entire week. The value line should then be
referred to see if the predictions march.

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 Day Twelve
Governmental role in the Stock Market
I. Objectives:
 Discuss the Government’s role in the Stock Market.

II. Process:

 Start with a short anecdote from history or a personal experience describing what would
happen if there was free market and free trade allowed in a nation.
 Explain and discuss what the government’s role is in the Stock Market.

 Explain and discuss about the SEC or the Securities and Exchange Commission.

 Discuss few articles on governmental actions in the Stock Market within the past year.

 Discuss about the Stock Market Crash in 1929 and Franklin D Roosevelt’s “New Deal”
policies to stabilize the nation.

 Talk about the recent recession and the current President, Barrack Obama’s actions to
improve our country’s economy.

III. Homework:

 Think and write a paragraph on how far the American government should interfere in
Investing and the Stock Market, making sure that it does not upset the capitalistic mind set
of the Americans.

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 Day Thirteen
Value Investing and Growth Investing
I. Objectives:
 Make students understand about Value Investing and Growth Investing, and explain what the
difference between the two is.

II. Process:
 Begin discussion with this question: Which companies are doing well?
 Discuss any new companies and their growth potentials. Examples: Netflix, Google.
 Explain about Value Investing and Growth Investing with examples.
 An example of a value Investing Company is Coca-Cola.

III. Homework:
 Answer the following question: What companies are going to grow the fastest in the next
two years?

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 Day Fourteen
Project: Company Trends
I. Objectives:

 Discuss the WeSeed Daily Log sheet and observe growing and dropping stocks. Discuss
possible reasons for it.
 Explain the new Project – Company Trends and discuss its benefits.

II. Process:
 Discuss about the Daily Log Sheet for a few minutes. Ask for any concerns in trading stocks on
the WeSeed.
 Handout guidelines for the Project.

 This will be a group project with three to four members each. Each group will be
assigned one company and asked to research the company’s history and its stock
trends for the past years (since it began). A poster describing the company with
numerical data should be presented to the class.

 Entertain any questions or doubts.

 Pass around samples of the project.

III. Homework:

 Start working on the Project. Project Presentations will be held on Day Seventeen, after two
days.

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 Day Fifteen
Jeopardy and Short Quiz
I. Objectives:

 Discuss goal of the Jeopardy and Quiz

 Play Jeopardy

 Have quiz after a ten minute break.

II. Process:
 Conduct an entertaining and useful Jeopardy game.
 Students should take a short quiz after the Jeopardy.

III. Homework:
 Keep an updated profile on WeSeed and report in your daily log sheet. Mark the positives and
negatives.

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 Day Sixteen
Influential Investors – Warren Buffet,
Stock market history
I. Objectives:
 Discuss the world’s richest people and how they made their riches by owning stock in their own
companies.

II. Process:
 Discuss the following questions.
 Who are the world’s richest people?
o Carlos Slim Helu
o William Henry Gates
o Warren Buffet

III. Homework:
 Answer the following question: How is the world’s richest man rich, and how did he make his
fortune?

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 Day Seventeen
Project Presentations
I. Objectives
 Present all the Projects and have discussions.
 Discuss the importance of the project

II. Process
 Presentations should be given a limited time and graded on the following basis:
 Amount of research/Knowledge of the Company
 Poster and Oral Presentation
 Creativity and Originality

 After all groups have presented, each of the companies should be discussed.
 The best presentation may be awarded extra credit points.
 Importance of this project should be discussed. Opinion and critics for the project
should be asked.

III. Homework
 Continue trading in WeSeed and keep up with the Daily Log Sheet. The richest
stockholder will be announced tomorrow.

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 Day Eighteen
WeSeed Challenge ends - Declare
Winner, Discuss Patterns
I. Objectives:
 Present a winner for the Stock Market Challenge.
 Ask for feedback for WeSeed.
 Discuss any patterns found.
 Discuss Good/Bad Stocks.

II. Process:
 Present the name of the winner of the competition.

 Ask the students what they thought about for WeSeed , and deltas that they strongly
believe in.

 Ask for their records of the stocks they were following and discuss the Daily Log Sheet.

 Discuss ways to improve WeSeed.

 Discuss any patterns found while buying and investing in stocks.

III. Homework:
 Keep current news on Wall Street and other Stock Markets.

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 Day Nineteen
Career Opportunities – Investment
Banker
I. Objectives:
Have an open discussion on career opportunities involving Investing and
the Stock Market.
 Invite an Investment Banker as a guest speaker to have an open
discussion with the students.

II. Process:
As the course is concluding, it is important to review the different job
opportunities available with Investing and the Stock Market. One such
opportunity is that of an Investment Banker.

Discuss the following with the guest speaker:

 What is an investment banker? What do they do?

 What are the qualifications you need to be a successful investment
banker?
 What happened before investment bankers were around?
 Who do they represent?
 Why do we need investment bankers?
 How do they help us?
Make sure any further questions are discussed.

III. Homework:
Find examples of famous investment bankers. Research how they have
become successful.

 Think about pursuing Investment Banking as a career.

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 Day Twenty
Class Feedback and Farewell Party

I. Objectives:
 Discuss what students have learnt from this course

 Discuss possible ways to improve this course.

 Have an enjoyable party!

II. Process:
 Present all the students with certificate completing this course on Investing and the Stock
Market.

 Have an open discussion on what progress each student has made

 Organize and enjoy the party!

III. Homework:
 Keep an eye on the news for changes in stock prices.
 Continue trading in the virtual stock market at WeSeed.
 Buy a few stocks and become a smart investor!

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Conclusion
We thank you for considering our lesson plan as one that could be used to teach students all

around the nation about Investing and the Stock Market. Make sure that the homework assigned

for each day is checked and reviewed on the next day. Make any alternations to this lesson plan

to suit your individual requirements. Do check out our sample Jeopardy games and quizzes.

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