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 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 the difference between the primary and secondary 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,
- role of banks as financial intermediaries,
- different types of banks and their functions.
Exclusions
Students will not cover
- exchange-traded funds,
- money and capital markets,
- mutual funds,
- different types of stocks and bonds.
