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by Lynn Cox
Updated June 2004I
Introduction
| Task
| Resources
| Process
|
Evaluation |
Conclusion
Introduction
Do you like CocaCola or Pepsi better? Are you good at Pokemon or better at Playstation games? Do you eat Pizza Hut pizza or Dominos? Which shoe do you think will last longer, Nike or Reebok? All of these are decisions which affect a company's sales. Would you like to own a part of these companies? When a company becomes a corporation they offer stock to the public to help them earn money. This allows them to increase their business. Yes, you can own part of a company!! When you purchase stock you become a shareholder of that company (you own a share in that company) and if your company does well, you can earn money. Here is an example of a company which did very well..
As a team of four or five students you are going to research an assigned type of company like a candy company. Your team will be looking at four companies which we call competitors. For an example, Pepsico and CocaCola compete against each other for soda sales. Each team will decide on a company they like and using technology, your team will prepare a class presentation about that company. Then the class will have the option of buying that stock or they could chose to purchase a competitor of that type of company. In other words your team will only research one type of company but your team will buy stock in one of the seven types of companies below. Your team will start with $10,000 and using a spread sheet your team will compute the cost with a commission. One month later, your team will decide whether they should keep that stock (if they have made a profit) or sell the stock and take a loss. Your team will then move to another group and research another type of company. Hopefully, we will be able to see if researching a company first can be profitable for your group!!!!
The following types of companies will be researched:
TEAM 1 SHOES
NIKE - REEBOK - ADIDAS (ADIDAS-SALOMON) - FILA
TEAM 2 CLOTHES
TEAM 3 RESTAURANTS
TEAM 4 BIKES
TEAM 5 GAMES
TEAM 6 SODAS
PEPSI (PEPSICO) - COCACOLA - GATORADE (QUAKER OATS) -
DR.PEPPER CADBURYSCHWEPPES
TEAM 7 CANDY COMPANIES
WARNER-LAMBERT - HERSHEY - NESTLE - NABISCO
The above companies have been researched through the site for Hoovers. Other stock searching sites include: Stockmaster ,Yahoo and CBS Marketwatch. Your team will also use a newspaper stock section and Value Line to help make a decision on the stock you like and it's cost per share.
To accomplish this task:
each team will meet twice a month to research an assigned type of company stock and it's three competitors.
the first meeting of your team will be to research your four assigned companies. Click here for the research form.
- Click on the book to check your research definitions.
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the second time your team will meet will be to decide which of the four companies your team would like to buy. This will be accomplished by your team members preparing a short presentation for the company you chose. Using a software program such as, Powerpoint, Inspiration or Hyperstudio your team will justify why you chose that particular company.
your team will prepare a short presentation for your class in order to assist the rest of the class in making their decision on which stocks to purchase for each different type of company. Please keep in mind that the group who researched a particular company might have an advantage over those teams who did not have that particular type of product to research. We'll see!!!!! Each team will then purchase a stock from each type of product. Our initial investment can be a maximum of $10,000. Please select the works spreadsheet link in order to complete the balance of your stocks purchased.
Evaluation
To see how you will be evaluated on your stock research presentation click on the bag.
Conclusion
At the end of the stock buying session (7 months), students will be able to convert fractions to decimals, find a commission rate, calculate the percent of increase and decrease, determine the price per earnings ratio, and interpret a graph. Students should also be able to prepare and present a project with technology and search the internet. Students will become familiar with financial terms such as; ratio, p/e ratio, competitor, ticker symbol, stock exchanges, cost per share, dividend, decrease and increase.