Lesson Plan: Stock Market Economics

This lesson plan includes the objectives, prerequisites, and exclusions of the lesson teaching students how to identify stocks and bonds as components of the stock market and characterize the role of the stock market in a country’s economy.

Objectives

Students will be able to

  • understand that stocks and bonds are means for entities to borrow money directly from the public,
  • understand the legal rights granted to shareholders (stockholders) and bondholders,
  • know the differences between stocks and bonds,
  • understand that issuing and trading stocks and bonds are regulated through the stock market,
  • understand different roles of the primary (issuance) and secondary (exchange) stock markets,
  • understand the functions of the stock market in a country’s economy.

Prerequisites

Students should already be familiar with

  • functions and characteristics of money,
  • the role of banks as financial intermediaries,
  • different types of banks and their functions.

Exclusions

Students will not cover

  • exchange-traded funds,
  • mutual funds,
  • different types of stocks.

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