Taking Stock in the New York Stock Exchange
Would your scholars enjoy an extra $100,000 of hypothetical cash? Have some fun with the stock market on this historical anniversary.
By Mollie Moore
Mark your calendars! May 17, 2013 is the 221st anniversary of the New York Stock Exchange’s humble beginnings beneath a buttonwood tree on Wall Street in New York City. Twenty-four brokers, five securities, and one monumental step — the Buttonwood Agreement — toward what would later become the largest exchange in the world.
Okay, okay. Perhaps this date isn’t regularly celebrated within economics classrooms, but the history is fascinating (check out the NYSE website for more details), and it conveniently opens a historically-relevant door to some great stock market activities for all ages. Depending on your class schedule, ideas to recognize this day could range from a “this-day-in-history” brief overview of the stock market, to a comprehensive study and simulation. We’ll look at approaches to both, and you can adjust based on your learners and time constraints.
The Human IPO
Use this wacky news story with older scholars as a discussion-prompting glimpse at stock market oddities, or to give an existing unit some social relevance and intrigue. Yahoo Finance gives the complete story of a man who decided to divide himself into 100,000 shares and sell them at $1 a piece to those interested in becoming shareholders in his future. The article, which includes a video, would be an excellent way to discuss IPOs, rights of shareholders, high-risk investments, reasons share price can fluctuate, and ethical dilemmas.
General Electric or Maytag?
Why not use May 17th as the beginning of an in-depth exploration through the stock market? The Council for Economic Education has excellent resources to help you address these financial concepts with all grades, many including worksheets and project ideas. If you want to stay focused on the aforementioned historical significance, consider the “NYSE Made Easy” lesson. Learners visit MSN Money to examine a current quote for General Electric and Maytag, becoming familiar with stock jargon and determining which of the two they would invest in. They decide on a stock they would like invest in and use company background, current events, quote analysis, and historical performance to back up their choice. Consider following the stocks learners chose in order to see how they do over the next month.
Simulations Made Easy
Thanks to apps and online programs, stock simulations take less effort on your part, are more engaging for budding brokers, and cost less (usually free) than ever before. So, where do you begin? If you don’t have mobile devices for apps, Investopedia is an excellent option offering opportunity to invest a hypothetical $100,000 in stocks. The helpful tutorials, continual stock ticker, and updated current events on the market add to the educational experience of this free program. If you’ll be using iPads, it’s worth your time to investigate simulation apps such as iTrade, Stock Wars - Virtual Investing, and Stock Market Millionaire; all of which are free. Kids can collaborate with other traders, link their trade profile to Facebook (the real sign of success on your part), and keep track of their portfolio’s performance based on current share values. Pair one of these programs with written analysis and reflection and you’ve got an excellent stock market unit.
More Ideas to Bring this Historical Date into Your Classroom:
Examine how the Federal Reserve and other big events can impact the stock market. This group simulation is enhanced by an article and a month-long assignment which has scholars follow a particular company's performance in the New York Times' Business section.
Take a global perspective and challenge learners to examine the 2007 stock market plunge, focusing on cause-and-effect relationships specifically involving China. Scholars analyze an article and a series of photographs during this study.
Cartoons for the Classroom: The Market Rollercoaster
Political cartoons are a great way to investigate financial issues. Learners will pick up on the artists' use of satire in illustrating the overreative nature of the stock market. Use the talking points to discuss this as a class.