The Stock Market

The Stock Market teaches students all about the stock exchange, the bull and bear markets, and what shares are. Students will discover how the stock market started in May of 1792. They will learn about the Buttonwood Agreement and about commissions. The Buttonwood Agreement led to what is now called the New York Stock Exchange (NYSE).

By the end of this lesson, students will be able to identify and define many of the terms associated with stocks. They will a basic understanding of how the market works and how to make money with investing. There are several suggestions in the “Options for Lesson” section that may aid in your instruction. For instance, you may invite a stock broker to speak with the class and provide additional information.

OVERVIEW

The Stock Market is a great lesson for 5th and 6th grade students. Your students will learn all about the stock exchange and related terms. They have likely heard of the stock market, but they may not fully understand it. Students will learn about buying, investing, selling, and trading. And they will even have the chance to simulate the stock exchange and purchase and trade stock.

What The Stock Market includes

There are four descriptive pages that explain the basics of the stock market. The lesson first describes what it is, what stocks are, what Wall Street is, and so on. Then it goes into more detail on how exactly stocks work. It mentions that only business corporations can issue stock. If one person or only a few people own a business, they can’t issue stock.

The lesson describes shares and shareholders. Shareholders are also called stockholders. The lesson provides an example of how the stock market works. Then it describes how to “play” the market and illustrates an example of what that means. Afterward, it defines investors and brokers and introduces students to the bear and bull markets.

ACTIVITY

You can get creative with the activity. After dividing into pairs, students will purchase shares of five different stocks. They will have an imaginary $5000 to allocate among the stocks. They will track the rising and falling prices of the stocks over a period of time. The lesson states two weeks. However, you could provide real companies for the students to monitor and adjust the amount of time they will track the prices.

At the beginning of the activity, students will answer a set of questions. After the two weeks pass, they will answer another set of questions based on their experience.

PRACTICE

The practice worksheet lists 15 statements. Students will match the definition to the correct term. Afterward, they will answer five other questions, most of which are based on the lesson material.

HOMEWORK

For the homework assignment, students must first fill in the blanks to 10 questions using the words in the word bank. Afterward, there is another set of statements. Students will determine whether the statement is true or false and mark it appropriately.

Additional information

grade-level

5th Grade, 6th Grade

subject

Social Studies

State Educational Standards

LB.ELA-Literacy.RI.5.3, LB.ELA-Literacy.RI.5.4, LB.ELA-Literacy.RI.6.3, LB.ELA-Literacy.RI.6.4, LB.ELA-Literacy.RH.6-8.4

Lessons are aligned to meet the education objectives and goals of most states. For more information on your state objectives, contact your local Board of Education or Department of Education in your state.