3.03BM What is a Stock?

Instructions

QUESTION OF THE DAY: If you invested $1,000 in Netflix stock ten years ago, what would it be worth now? 📷5 min
Answer the question on the first slide in the space below. Then, compare your answer to the answer on the second slide. Finally, follow your teacher’s directions on how to answer the follow-up questions on the last slide.

1

If you invested $1,000 in Netflix stock ten years ago, what would it be worth now?_______ 

VIDEO: Investing Basics: Stocks
If you want to grow your wealth, investing in stocks is a great option. Watch this video to learn more about what stocks are, how they work, and what you can do to minimize your risk when investing in stocks. Then, answer the questions.

1

Company A is raising $1 million at its initial public offering (IPO) by issuing 2,000 shares of stock. What is the value of each share?_______ 

2

Julia buys a share of stock through her brokerage firm. What are the two ways that Julia could make money from owning this stock?_______ _______ 

3

Julia knows that investing in just one company is risky since there’s a chance that the stock’s value could decrease. What are some ways she can minimize her risk?_______ _______ _______ 

ARTICLE: How to Read a Stock Quote
REFERENCE: Stock Performance - Nike 📷10 min
To understand if a particular stock is a good investment option for you, you’ll need to know how to read a stock quote so you can evaluate its performance. Read through this article to learn how to read a stock quote. Then, review the stock quote and answer the questions.

1

According to the article, why is it more useful to look at the percent change of a stock price, rather than the change in dollar amount?

1

Look at the stock performance for Nike. Describe the trend in Nike stock prices over the last year. What about the last 5 years?

2

Is Nike a small, medium, or large cap company?_______  How do you know?_______ 

1

Company B’s stock price is $500. You overhear a classmate say, “Based on the stock price, Company B’s value is clearly higher than Nike’s!” Why might your classmate be wrong?

2

If you were considering buying a stock, which time frame would you use to analyze its price history (1-day, 5-day, 1-month, etc)? _______ Why?_______ 

FINCAP FRIDAY: Stock Split Summer 📷9 min
Sometimes, a company will announce a stock split. So, what does this mean for you as an investor? Go through this FinCap Friday to find out! As your teacher progresses through the slides, answer these questions, just writing A, B, C, or D for questions 1 - 5.

5

Question 1:_______ 
Question 2:_______ 
Question 3:_______ 
Question 4:_______ 
Question 5: _______ 

1

You’ve been interested in investing in Company C for quite some time. You’ve done your research and you’re ready to invest. Coincidentally, Company C just announced a stock split. Why might this be good news for you?

PROJECT: 5 Stocks on Your Birthday
Part I: Pick 5 Companies
Imagine it's your 10th birthday, and your wealthy Grandma’s buying you 100 shares in a single company. Choose 5 public companies you could have picked back then that still exist today. Make sure they were around on your birthday and are still active now - no bankrupt companies allowed!

1

What was the date of your 10th birthday?_______ 

15

Fill in the chart with your 5 possible investments. Need help finding historical stock prices? Watch this quick how-to video.
Company 1: 
Name: _______ Ticker Symbol: _______ 
Adj. Cose Price on my 10th Birthday: _______ 

Company 2:
 Name: _______ Ticker Symbol: _______  
Adj. Close Price on my 10th Birthday: _______ 

Company 3: 
Name:_______  Ticker Symbol:_______ 
Adj. Close Price on my 10th Birthday: _______ 

Company 4: 
Name:  _______ Ticker Symbol:_______ 
Adj. Close Price on my 10th Birthday: _______ 

Company 5: 
Name:  _______ Ticker Symbol:_______ 
Adj. Close Price on my 10th Birthday: _______ 

Part II:  Track the Prices
Follow these steps to track the prices of the 5 companies’ shares yearly on your birthday.
Open the  Stock Tracker, spreadsheet
Open Yahoo! Finance in another tab
Enter Company 1’s name in cell C1, its Yahoo! Finance link in C2, and its “Adj. Close” price on your 10th birthday in C3.
Add the Adj. Close Price on your birthday to the table in column C starting with the year you turned 10. Then, look up every additional year until the current year.
Notes:
If your birthday wasn’t a trading day, use the closest previous day’s price
If your birthday hasn’t happened this year, use the latest Adj. Close Price available
Your chart for Company 1 might look something like this:

Use the tabs at the bottom of the spreadsheet to complete the same for Companies 2-5.

1

This file is linked in your google cassroom assignment. Did you find and open it there?

1

Use the tabs at the bottom of the spreadsheet to complete the same for Companies 2-5.
Let me know here if you have any questions.
Pic of the tabs below: Click on each tab to open the sheet.

1

Part III: Compare the Stocks
Go to the “Stock Comparison” tab in your spreadsheet and follow the How To video to create a single graph with all 5 stocks’ data
NOTE: Your stock values will automatically carry over from the other tabs, so skip this setup step in the video. Any questions?

1

Part IV: Write a Stock Report
Now that you’ve got some great graphs for comparison, go back to your google classroom and open your copy of the STOCK REPORT. Write a brief report summarizing which stock would have been the best choice on your tenth birthday.

QUESTION OF THE DAY: If you invested $1,000 in Netflix stock ten years ago, what would it be worth now? 📷5 min

VIDEO: Investing Basics: Stocks

ARTICLE: How to Read a Stock Quote

REFERENCE: Stock Performance - Nike 📷10 min

According to the article, why is it more useful to look at the percent change of a stock price, rather than the change in dollar amount?

Look at the stock performance for Nike. Describe the trend in Nike stock prices over the last year. What about the last 5 years?

Company B’s stock price is $500. You overhear a classmate say, “Based on the stock price, Company B’s value is clearly higher than Nike’s!” Why might your classmate be wrong?

FINCAP FRIDAY: Stock Split Summer 📷9 min

You’ve been interested in investing in Company C for quite some time. You’ve done your research and you’re ready to invest. Coincidentally, Company C just announced a stock split. Why might this be good news for you?

This file is linked in your google cassroom assignment. Did you find and open it there?

Use the tabs at the bottom of the spreadsheet to complete the same for Companies 2-5.
Let me know here if you have any questions.
Pic of the tabs below: Click on each tab to open the sheet.

Part III: Compare the Stocks
Go to the “Stock Comparison” tab in your spreadsheet and follow the How To video to create a single graph with all 5 stocks’ data
NOTE: Your stock values will automatically carry over from the other tabs, so skip this setup step in the video. Any questions?

Part IV: Write a Stock Report
Now that you’ve got some great graphs for comparison, go back to your google classroom and open your copy of the STOCK REPORT. Write a brief report summarizing which stock would have been the best choice on your tenth birthday.

What is a stock?

When reading a stock quote, which of the following metrics would give you the best idea of the total value of the company?

Which of the following is TRUE about a stock split?

3.03BM What is a Stock?

QUESTION OF THE DAY: If you invested $1,000 in Netflix stock ten years ago, what would it be worth now? 📷5 min

VIDEO: Investing Basics: Stocks

ARTICLE: How to Read a Stock Quote

REFERENCE: Stock Performance - Nike 📷10 min

According to the article, why is it more useful to look at the percent change of a stock price, rather than the change in dollar amount?

Look at the stock performance for Nike. Describe the trend in Nike stock prices over the last year. What about the last 5 years?

Company B’s stock price is $500. You overhear a classmate say, “Based on the stock price, Company B’s value is clearly higher than Nike’s!” Why might your classmate be wrong?

FINCAP FRIDAY: Stock Split Summer 📷9 min

You’ve been interested in investing in Company C for quite some time. You’ve done your research and you’re ready to invest. Coincidentally, Company C just announced a stock split. Why might this be good news for you?

This file is linked in your google cassroom assignment. Did you find and open it there?

Use the tabs at the bottom of the spreadsheet to complete the same for Companies 2-5. Let me know here if you have any questions. Pic of the tabs below: Click on each tab to open the sheet.

Part III: Compare the StocksGo to the “Stock Comparison” tab in your spreadsheet and follow the How To video to create a single graph with all 5 stocks’ dataNOTE: Your stock values will automatically carry over from the other tabs, so skip this setup step in the video. ** Any questions?**

Part IV: Write a Stock ReportNow that you’ve got some great graphs for comparison, go back to your google classroom and open your copy of the STOCK REPORT. Write a brief report summarizing which stock would have been the best choice on your tenth birthday.

What is a stock?

When reading a stock quote, which of the following metrics would give you the best idea of the total value of the company?

Which of the following is TRUE about a stock split?

Use the tabs at the bottom of the spreadsheet to complete the same for Companies 2-5.
Let me know here if you have any questions.
Pic of the tabs below: Click on each tab to open the sheet.

Part III: Compare the Stocks
Go to the “Stock Comparison” tab in your spreadsheet and follow the How To video to create a single graph with all 5 stocks’ data
NOTE: Your stock values will automatically carry over from the other tabs, so skip this setup step in the video. Any questions?

Part IV: Write a Stock Report
Now that you’ve got some great graphs for comparison, go back to your google classroom and open your copy of the STOCK REPORT. Write a brief report summarizing which stock would have been the best choice on your tenth birthday.