Exploring the Stock Market - Investing for Fifth Graders (2024)

Overview:
Fifth grade students explore the world of the stock market and simple investing and graphing. Students begin by learning basic stock market concepts, terms, and the impact the stock market can have for individuals and society. Students will choose stocks, track the daily performance of their stocks via the Internet, and record performance results in spreadsheet and graphs. Will student investments increase in value? Lose value? Lets learn how profit, loss, and risk affect our financial futures.

RATIONALE:

Rationale

Understanding math and graphing, and developing skill in these areas, is important for fifth grade students. Using the stock market as a "real world" source of information, students have the opportunity to collect and track data in this investment simulation. Addition, subtraction, multiplication, division, and the process of working with fractions, decimals, and the rounding of numbers are necessary tasks for students to use to see if their stock “investments” result in a profit or a loss. By tracking and graphing the daily close price of stocks, students not only gain a sense of how the stock market fluctuates, but they also create a powerful numerical and visual picture of the overal performance of their investment stocks over time (a duration of several weeks). Students will use the Internet for research (to access Yahoo! Finance and Google Finance websites to check daily stock values) and Microsoft Excel for data collection and graphing. Many extension activities are possible for extended learning. After stocks have been tracked and graphed, students could use Microsoft PowerPoint or Comic Life software to share experiences and findings for classroom presentations. Students could even create a podcast with software such as Apple Garage Band and iTunes, and showcase their graphs and learning to a much larger audience via the Web.

CORE UNDERSTANDINGS:

Core Understandings

Using technology to research, track, and graph stock market data helps students understand essential concepts and skills pertinent to their academic, employment and financial futures.

Developing skills for researching the Internet, setting-up spreadsheets and graphs, and analizing collected data expands student opportunities for academic and employment success.

Strengthening the ability for reasoning, graphing, rounding, number sense, and the interpretation of fractions and decimals not only aligns with California Math Content Standards for fifth grade, but are also useful skills for everyday life in and out of school.

LEARNING OBJECTIVES:

Learning Objectives

Students will:

• Learn basic stock market concepts and terms.
  
• Research and pick two stocks via the Internet.
  
• Use the Internet to collect daily stock closing values over time.
• Setup an Excel spreadsheet to track and record each stock’s performance.
• Learn to apply basic Excel spreadsheet formulas (multiplication, sum, profit/loss) to automatically compute:
  
• Daily individual stock dollar value - per stock (number of shares x daily stock closing value (mulitiplication))
• Daily combined dollar value total - the addition of daily values for both stocks (stock #1 + stock #2 (sum))
• Daily combined dollar profit/loss amount (daily dollar value of stock #1 + stock #2: is it greater than (profit), less than (loss), or equal to (no change) the initial amount invested on the first day in both stocks (profit/loss)?
  
• Use Excel to create line graphs of stock performances.
  
• Share findings related to the stock market, investing, and the tracking of stock performance via multimedia presentations, posters or podcasts.
  

STANDARDS:

California and NETS Standards

	MA.5.1.1. Estimate, round, and manipulate very large (e.g., millions) and very small (e.g., thousandths) numbers.
	MA.5.1.2. Interpret percents as a part of a hundred; find decimal and percent equivalents for common fractions and explain why they represent the same value; compute a given percent of a whole number.
	MA.5.1.3. Understand and compute positive integer powers of nonnegative integers; compute examples as repeated multiplication.
	MA.5.1.5. Identify and represent on a number line decimals, fractions, mixed numbers, and positive and negative integers.
MA.5.2.0 Students perform calculations and solve problems involving addition, subtraction, and simple multiplication and division of fractions and decimals:
	MA.5.2.1. Add, subtract, multiply, and divide with decimals; add with negative integers; subtract positive integers from negative integers; and verify the reasonableness of the results.
	MA.5.2.3. Solve simple problems, including ones arising in concrete situations, involving the addition and subtraction of fractions and mixed numbers (like and unlike denominators of 20 or less), and express answers in the simplest form.
	MA.5.2.4. Understand the concept of multiplication and division of fractions.
	MA.5.2.5. Compute and perform simple multiplication and division of fractions and apply these procedures to solving problems.
Algebra and Functions
MA.5.1.0 Students use variables in simple expressions, compute the value of the expression for specific values of the variable, and plot and interpret the results:
	MA.5.1.1. Use information taken from a graph or equation to answer questions about a problem situation.
	MA.5.1.4. Identify and graph ordered pairs in the four quadrants of the coordinate plane.
Statistics, Data Analysis, and Probability
MA.5.1.0 Students display, analyze, compare, and interpret different data sets, including data sets of different sizes:
	MA.5.1.2. Organize and display single-variable data in appropriate graphs and representations (e.g., histogram, circle graphs) and explain which types of graphs are appropriate for various data sets.
	MA.5.1.3. Use fractions and percentages to compare data sets of different sizes.
	MA.5.1.4. Identify ordered pairs of data from a graph and interpret the meaning of the data in terms of the situation depicted by the graph.
Mathematical Reasoning
MA.5.1.0 Students make decisions about how to approach problems:
	MA.5.1.1. Analyze problems by identifying relationships, distinguishing relevant from irrelevant information, sequencing and prioritizing information, and observing patterns.
	MA.5.1.2. Determine when and how to break a problem into simpler parts.
MA.5.2.0 Students use strategies, skills, and concepts in finding solutions:
	MA.5.2.1. Use estimation to verify the reasonableness of calculated results.
	MA.5.2.2. Apply strategies and results from simpler problems to more complex problems.
	MA.5.2.3. Use a variety of methods, such as words, numbers, symbols, charts, graphs, tables, diagrams, and models, to explain mathematical reasoning.
	MA.5.2.4. Express the solution clearly and logically by using the appropriate mathematical notation and terms and clear language; support solutions with evidence in both verbal and symbolic work.
	MA.5.2.6. Make precise calculations and check the validity of the results from the context of the problem.
MA.5.3.0 Students move beyond a particular problem by generalizing to other situations:
	MA.5.3.1. Evaluate the reasonableness of the solution in the context of the original situation.
	MA.5.3.2. Note the method of deriving the solution and demonstrate a conceptual understanding of the derivation by solving similar problems.
	MA.5.3.3. Develop generalizations of the results obtained and apply them in other circ*mstances.

ACTIVITIES:

Pre-Assessment

The pre-assessment will consist of a vocabulary / matching handout. Students will take the pre-assessment and self-score their answers afterward against an answer key. The teacher will observe and keep results to compare with post-assessment.

Example Pre-Assessment (pdf file to be added soon)

Activities and Teaching Timeline

Stock Market Video Clips

What Is Stock? (2’55 sec) Podcast: http://my-ecoach.com/podcast.php?rid=30430

How The Stock Market Works (3’10 sec)Podcast: http://my-ecoach.com/podcast.php?rid=30431

Extension Activity Ideas

Stock Market "Extension" Learning Ideas:

• Students create a Power Point poster (Advertisem*nt) recommending one of their company / stocks (poster should include Excel line graph of the stock's recent performance). The poster should "sell" the stock to others as a good one in which to invest.
• Students use Comic Life software to create a fun but educational poster on the basics of investing in a stock.
• Students make a 30 - 60 second enhanced podcast that chronicals their three week investment experience. Images could include the company / stock logo, screen shots of their Excel Combo tracking page, and their final Excel line graph.

ASSESSMENT:

Assessment

Post assessment to be added soon!

KWL Chart

A KWL chart will be used as part of the pre-assessment and post-assessment process. To be added soon!