How Global is Your Portfolio?
This lesson printed from:
Posted December 9, 2010
Grades: 3-5, 6-8
Author: Marsha Masters
Posted: December 9, 2010
This engaging lesson challenges students to connect economics and geography as they investigate global companies in the stock market.
- Match companies and products with their company's country headquarters.
- Locate globally traded companies listed on the NYSE, NASDAQ, and the DOW.
- Research information about globally traded companies and present findings to the class.
Are your students studying the global economy or the stock market? Are they aware of publicly traded companies in the global market? This lesson provides research opportunities for students as they locate and investigate global companies listed on the DOW, NASDAQ and the New York Stock Exchange (NYSE).
NYSE Made Easy: This EconEdLink lesson plan helps students understand the basics of the New York Stock Exchange.
Here's Your Chance to Make Millions in the Stock Market: This EconEdLink lesson plan helps students better understand the stock market.
The Global Dow: This brochure gives a brief overview of the Global Dow 150 stock index and lists each component as well as the country where the company headquarters is located.
New York Stock Exchange: This is the New York Stock Exchange's listing of global companies listed on one of the four equity markets.
NASDAQ: The NASDAQ website offers global stocks by region/continent.
YAHOO Finance: A great site for research purposes. Students can conduct in depth research about a publicly traded company.
"Company and Country Connect": A drag and drop activity that challenges students to take identified global companies and match the company's headquarters by country.
Company and Country Connect
"Taking Stock in the Global Market": This activity sheet will serve as a recording sheet for the research that will be conducted on the above websites.
Taking Stock in the Global Market
"Global Research": Students will use this sheet to gather information for their oral reports about their global company. Create a great visual by having students plot their company's headquarters on a world map as they share.
[NOTE: This lesson is a complement to the study of the stock market. It is not a prerequisite to have participated or be participating in a stock market simulation to complete this lesson. Lessons that are available through EconEd Link that fit well with this lesson include: NYSE Made Easy; Here's Your Chance to Make Millions in the Stock Market: 3 part lesson (this is the link to part 1).
Briefly review what a stock is. [A share of ownership in a publicly traded company.] Also, review what a ticker symbol is. [The abbreviation for a publicly held company.] Ticker symbols with one to three letters are located on the New York Stock Exhange and ticker symbols with four letters or more are located on NASDAQ. Investors use the ticker symbol to identify the company when they buy stocks.
Share with students that when investing in the stock market, investors are encouraged to diversify their portfolios. In other words, one would not want to invest all their money in one industry or sector like only purchasing technology stocks or only investing in oil and gas companies. Share with students the benefit of diversifying, which is that if one industry or sector really suffered a great loss or was severely impacted by an event, their portfolios would not be completely destroyed.
Another suggestion advisors share is to consider the global market in stock portfolios. Recent articles by financial advisors note vast changes happening in the global economy. Emerging markets such as Brazil, India,and South Asia are gaining market share.
If your students were asked to name global companies, would they be able to list some? Do they know "where in the world" goods and services they consume are produced? Do they know information about companies in the global market? The activities of this lesson will increase their knowledge and better prepare them to "diversify their global portfolio!"
ACTIVITY 1: "COMPANY AND COUNTRY CONNECTION"
Company and Country Connection is a drag and drop activity.
Activity 1 Answers:
[Coca Cola- United States; Toyota Motor- Japan; Nokia- Finland; Nestle SA-Switzerland; Samsung Electronic-South Korea; Fresh DelMonte Produce- Cayman Islands;Dove Soap(Unilever)- Netherlands; Harry Winston Diamond Corporation- Canada]
ACTIVITY 2: "TAKING STOCK IN THE GLOBAL MARKET"
In Activity 2 students visit three websites (the DOW , the New York Stock Exchange and NASDAQ ) to become familiar with global companies. They will complete a scavenger hunt to find out more about the global market.
[Answer Sheet attached in Resource Section.]
For the Global Research Activity students select one global company from Activity 2, research using Yahoo Finance and the company's website(which is accessible through Yahoo Finance),complete the research sheet and present their findings to the class via an oral report. Encourage students to be creative and original in their presentations. (Optional: Students should be prepared to plot their country on a world map.)
Debrief the activity by reviewing some key points from this lesson:
1. What is a stock?
[A stock is a share of ownership in a company.]
2. What is a ticker symbol?
[A ticker symbol is a letter or group of letters that symbolize a company and is used in purchasing shares of stock in the market.]
3. What is a portfolio of stocks?
[Portfolio of stocks is the stocks that you have purchased shares in.]
4. Why might you want to purchase stocks in the global market?
[There are companies in other countries that are predicted to have higher return than most US companies, and it also further diversifies your portfolio.]
5. Where is the company headquarters for Nokia?
[Nokia headquarters are located in Finland.]
6. Where is the company headquarters for Samsung Electronics?
[Samsung Electronics headquarters are located in South Korea.]
7. Where is the company headquarters for Coca Cola?
[Coca Cola headquarters are located in the United States.]
8. Share one fact from your Global Scavenger Hunt.
[Answers will vary.]
9. Would you invest in global companies? Why or why not?
[Answers will vary.]
Assign student teams a country. They will select three stocks from that country and track their performance over the course of several months. Tell them to diversify their "global portfolio" by selecting companies from different industries. Have students look for news events that affect their country and companies. Look at the trading price for the company. Note the changes weekly and make a graph to reflect the increase or decrease in stock value. After the timeframe selected, ask students to present their findings to the class.
Ask students to create a PowerPoint presentation to share with the class about their global company.