Stock Market Project
The purpose of this project is to promote a clearer understanding of financial markets, develop personal investment strategies, and prepare students to be better economic decision-makers. To accomplish these purposes students will be encouraged to evaluate stock price movements based on fundamental and technical reasoning, rather than mere price gains or losses. The importance of understanding why stock prices move up and down is fundamental to sound investment strategy. Random choice that turns a profit based on luck is not education. The notion that participation in stock markets is like gambling should be dispelled. Rational, long term approaches to investments is a healthier approach. Successful completion of this experience should assist students in developing a basis for more complex understanding economic decision making in the future. The California State Standards in Economics addressed in this project are:
12.29: Describe the functions of financial markets.
12.34 Understanding the aims and tools of monetary policy and their influence on economic activity.
12.51 Distinguish between normal and real data.
12.52 Define, calculate, and explain, the significance of an unemployment rate, the number of new jobs created monthly, an inflation or deflation rate, and rate of economic growth.
12.53 Distinguish between short-term and long-term interest rate and explain their relative significance.
Steps:
1. Choose four stocks to follow during the project period of study. At least one stock must be chosen from the NYSE and one must be chosen from the NASDAQ. The third can be from either the NYSE or the NASDAQ. The fourth investment must be a mutual fund. You will have $10,000 to invest. Quantity is based on your discretion.
2. Students will be required to type 1 paragraph explaining the decision made in choosing the each stock. Advice? Random? Expectations?
3. A collective record of the daily data on each stock and mutual fund must be included in a data base format. This data will include opening price, daily high, low, closing price, and volume.
4. Produce two graphs of each stock and mutual fund during your designated time period of investment. The first graph must be a linear graph and the second must bean isobar graph of each stock’s daily price pattern.
5. Collect two news articles on each stock and mutual fund during period of investment. News articles may include company failures, successes, scandals, new products, etc. Each article must also have a 2 paragraph response. Paragraph 1 summarizes the article and paragraph 2 must explain how this news will affect the company and/or prices of the stock.
6. Students will be required to complete 4 worksheets during the period of investment. These worksheets will update the student and the teacher on the progress being made in each chosen investment.
7. Finally, the students will be required to type a full page response reflecting on the project and their experiences investing.
* All steps of this project must be typed in Times New Roman Font, Size 12, and Double Spaced *
With the exception of worksheets and updates given in class
Project must be completed in a report folder with a cover sheet.
DUE DATE: Thursday 12/1BY 3PM
Section Points
- Company 1 (NYSE)
a. Decorative Company Divider
b. Paragraph on why you chose this stock
c. Daily Data on each stock
d. Isobar and line chart
e. Article 1 and response
f. Article 2 and response / _____ (5)
_____ (5)
_____ (5)
_____ (5)
_____ (5)
_____ (5)
______(30)
II. Company 2 (NASDAQ)
______
a. Decorative Company Divider
b. Paragraph on why you chose this stock
c. Daily Data on each stock
d. Isobar and line chart
e. Article 1 and response
f. Article 2 and response / _____ (5)
_____ (5)
_____ (5)
_____ (5)
_____ (5)
_____ (5)
______(30)
III. Company 3 (NYSE or NASDAQ)
______
a. Decorative Company Divider
b. Paragraph on why you chose this stock
c. Daily Data on each stock
d. Isobar and line chart
e. Article 1 and response
f. Article 2 and response / _____ (5)
_____ (5)
_____ (5)
_____ (5)
_____ (5)
_____ (5)
______(30)
IV. Mutual Fund
______
a. Decorative Company Divider
b. Paragraph on why you chose this stock
c. Daily Data on each stock
d. Isobar and line chart
e. Article 1 and response
f. Article 2 and response / _____ (5)
_____ (5)
_____ (5)
_____ (5)
_____ (5)
_____ (5)
______(30)
V. Updates and Conclusion
a. Day 1 Purchase Cost
b. Update 1
c. Update 2
d. Final Profits/Loss
e. 1 page Reflection / _____ (5)
_____ (5)
_____ (5)
_____ (5)
_____ (10)
______(30)
Total / ______(150)