The Stock Market

The Stock Market

I can explain what the stock market is, how it works, and why people want to...

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The Stock Market

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This lesson serves as an introduction to the stock market. Students will learn that the stock market is a way for people to invest their money. They will learn about stocks, bonds, and mutual funds. Students will be asked to analyze hypothetical scenarios that encourage critical thinking and expose them to investment situations. Students will learn that the stock market is much like a game of chance, and even the best investors don’t count on their ability to choose the right stock. Therefore, a diversified portfolio is ideal.

Learning Objective

Students will be able to define what a stock market is and be able to look up basic stock market information. They will also analyze the decisions investors make when buying stocks.


Review the importance of saving money and explain appreciation and depreciation. Ask students if a collection of rare baseball cards would appreciate or depreciate over time. Go over the importance of investing by discussing the difference between saving and investing.


Introduce the idea of investing by providing a simple example. Explain how you could make money in the stock market, explaining the fluctuating prices of shares. Give an example and have students calculate how much money has been invested and how much was made by selling the stocks in the example. Discuss other scenarios to see how the price of shares could change in a given situation. Have students read the different scenarios and determine if the company’s stock would go up or down. Explain the importance of diversified stocks and have students drag the shares to create their own diversified portfolio. Finally, explain what bonds, ETFs, and mutual funds are.


Check student understanding with ten multiple-choice and true or false questions.


Students imagine that they have $1,000 to invest in the stock market. Have them choose 5-10 companies to invest in. They should look up the stock prices online and see how the prices change in a week. Have they made any money?

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