#2030. What is stocks and stock exchange market?

other, level: Elementary
Posted Sun Nov 26 12:32:49 PST 2000 by Wen-Lan Hsieh (wxh167@psu.edu).
Penn State University, State College, USA
Materials Required: green papers,white papers
Activity Time: 2~3 hours
Concepts Taught: Understand the roles that issue, underwrite, buy, and sell stocks.

Lesson Activity #1 (Introduction): What is stocks?
1. Students are divided into 3 groups.
2. One group is the owners of a company who want to raise money from the investors, the second group is the investors who want to earn extra reward from their money, and the third group is the investment banker.
3. The owner group uses white papers as stocks and issues them to the investment banker.
4. The investment banker underwrites these stocks and sells them to the public investors.
5. The investors use green papers as money to buy stocks.

Supporting web sites:
http://library.thinkquest.org/10326/investment_lessons/index.html
http://www.mainxchange.com/stockgame/help/lessons/lesson1.asp
http://www.suu.edu/ced/distance/durfee/fin2870_lesson5.html

Lesson Activity#2: What is Stock Exchange Market?
1. Students will be divided into 4 different groups.
2. One group is the buyer and sellers who place orders to a broker.
3. The second group is brokers who receive the orders from investors and contact the commission brokers who work in the stock exchange market to execute the orders.
4. The third group is commission brokers who assign stock trading to specialist.

5. The fourth group is specialists who makes a market in the shares of one or more firms and who maintains a "fair and orderly market" by dealing personally in the market.

Supporting Web sites:
http://www.mainxchange.com/stockgame/help/lessons/lesson6.asp
http://www.nyse.com/floor/floor.html, click the ¡§Anatomy of a Trader¡¨ under the trading floor