Boom Or Bust?

Boom or Bust? What is a Share? Stock markets The ownership of a limited company is These are places where investors can sell their stock in a divided up into equal parts called company to people all over the world. They may choose to shares. Whoever owns one or more of reinvest their money into another company. If they sell the these is called a shareholder. shares for more than they originally cost then they make money! Equally if the price go down and you sell the shares you lose money! FTSE 100 The footsie’s official name is the Financial Times Stock Exchange (FTSE) 100 Index. It is essentially a list of the 100 largest companies listed on the London Stock Exchange. You will have heard of lots of these companies E.g. Coke-cola, JD sports, Just eat takeaway, Sainsbury Risk vs reward Investing in the stock market is very risky the prices of stock change dramatically. Fortunes can be made when markets are rising this is known as a Bull market. Equally World events can wipe millions of £ of the value of the market in a matter of days this is known as a Bear market. 2008 – The house bubble bursts it affected banks and financial 2000 – The technology institutions who were betting on the dot.com bubble bursts continued increase in home prices. 2020 Coronavirus pandemic Excellence Programme instructions – pick one or both of the tasks below Task A: Market Research: Pick 5 companies and research how their price has changed over the last 12 months, look at the trend in the stock price is it generally rising, failing or all over the place. (Also think about how the current pandemic will affect their business!!) Say if each company would this company make a good investment? Task B: Play the market investment game: Email me to let me know the results of your market research, and how your market investment game went - Mrs Robinson [email protected] Market Investment Game You will need: 2 dice and a maybe a calculator (plus some paper to record your results) We Make Cool tech Stuff ltd. Is a gadget and software manufacturer. • You have 1 share in We Make Cool Tech Stuff ltd. • You paid £100.00 for this share 1. Throw your dice, add up the value of both dice and read the Scenario for that number. 2. Record how this event affect the value your share (stock price) 3. Repeat to select a second scenario 4. What is the final value of your stock? Did you make money or lose money? 5. 2. The company recalls 100,000 3. The company’s gadget 4. A rival company gadgets to repair a glitch. The sales are higher than launches a competing stock price falls £10. expected. The stock price gadget. The stock price rises £10. falls £20. 5. The store chain that usually 6. The company comes out 7. The company starts places the highest orders for the with the most popular selling gadgets in two company’s gadgets goes out of software application of new countries. The business. The chain closes 1,000 the year. The stock price stock price rises £30. stores across the country. The rises £60 stock price falls £30. 8. A celebrity is seen using the 9. The company’s chief 10. The company finds a company’s newest gadget. The executive officer is way to cut the cost of stock price rises £35. involved in a scandal. The making gadgets. The stock price falls £40. stock price rises £20. 11. A huge lawsuit is brought against 12. The company is bought the company because of by the leading tech exploding batteries. The stock company in America. The price falls £80. stock price doubles. Warwick Star Tasks Why do think the stock price rose or fell with each scenario. Repeat the game 5 more time and plot a graph of how the price changes with different scenario .

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