Jonathan RedekerMST 1Professor Halper

Unit Plan: Money over time: The Stock Market, Inflation, and How to Become a Millionaire

Time Frame: 1-2 weeks

Grade Level: 8th Grade

Content Areas: Social Studies, Math, Technology, Economics, Statistics

Essential Question:How do riches change over time?

In this unit, we will explore banking, the stock market, historical patterns, inflation, and monetary changes over time.

Lesson 1 Lesson 2 Lesson 3Vocabulary Exploration of the Stock Market and Investment

Why making millions is not so easy

Will you make millions or lose your shirt?

Lesson 4 Lesson 5 Continued from 5…Environmental and physical toll of the Great Depression

Stock Market: Crash and Recovery

Stock Market game

See the appendix for standards addressed in this unit.

Vocabulary Exploration of the Stock Market

Title: Boom or Bust?

Time Frame: 1-2 class periods

See the Standards attached for the relation to this unit.:

Objectives: Define the vocabulary used to explain the economic events surrounding the stock

market. Explore the preliminary reasons for boom and bust in economic situations.

Resources:America: History of Our Nation textbook Chapter 22 - 23Internet AccessSmart BoardLCD projection screenPencils and paperCalculatorsFranklin SpellersDVD clip from Cinderella Man and It’s a Wonderful LifeInspiration software

Procedure:1. Show the DVD clips demonstrating the life and prosperity of the 1920’s. 2. Explain why people were becoming so wealthy though investments in stocks. 3. Define some of the vocabulary terms relating to the run on banks and the

stock market boom and bust using the Franklin Speller handheld dictionaries.4. Vocabulary: stock market, stock, investment, overproduction, speculation,

bankruptcy, default, bonus, credit, boom, bust, interest, loan5. Using Inspiration concept mapping software, demonstrate the ways banks

and stock markets work.

Differentiated Instruction:By using a variety of media to present the information, students of most learning styles will have an opportunity to get engaged. Students who feel uncomfortable or unfamiliar with technology will be given the opportunity to use traditional mediums such as textbooks and dictionaries to complete the classwork assignments relating to the content.

Technology Integration:Utilizing multimedia hooks from DVDs showing the boom of the 1920’s, students will be engaged in the visual learning process. They will also be using Franklin spellers as tools for student centered learning. Using the Smartboard to show the ways in which money makes money will help them conceptualize the difficult concepts.

Assessment:For homework: Students should draw a concept map on paper showing how banks handle money.

Title: Why Making Millions is Not So Easy

Time Frame: 1 – 2 class periods

See the Standards attached for the relation to this unit.:

Objectives: Students will: Explain market efficiency Examine the difference between market investment strategies Explain the importance of long term investments in the market.

Resources:America: History of Our Nation textbook Chapter 22 - 23Internet AccessSmart BoardLCD projection screenPencils and paperCalculatorsInteractive Activityhttp://www.mathgoodies.com/lessons/vol6/intro_probability.html

Procedure:Hook: Throw a few darts at a dart board – discuss random probability.

1. Go over the vocabulary assignment previously assigned. 2. Go over the basic fundamentals of market movement.

a. “An elderly economics professor was walking down a busy street with one of his energetic students to the local café for lunch. Along the way, as he was explaining the concept of market efficiency to his student, the professor stepped right on a wadded up $20 bill and continued to stroll on. The student, who was looking down in studious thought at the time, was amazed at his good fortune and stooped down to pick it up. As the student rushed to catch up with the professor, he asked the professor whether he had seen the $20 bill. The professor quipped "My dear lad, haven't you been listening to anything I have been saying about efficient markets? Although I saw the $20, I knew my eyes must have been deceiving me. Efficient markets theory dictates that it couldn't possibly be there because if it had been, someone else would have already picked it up."The story above is an old joke among economists. It highlights both the conclusions and possible folly of assuming the extreme case of efficient market theory. Most scholars believe (in one form or another) in efficient markets. Although there are several forms of what is referred to as the "market efficiency hypothesis," its basic premise is that all stock prices accurately reflect all historical and current information. This means that whenever you purchase a stock, you are getting the best price based on available information. If the stock you chose was truly undervalued, investors would have already been buying the stock and thus pushing the stock price up until it was considered accurately

valued. The opposite occurs for overpriced stocks. In essence, the theory states that there are no $20 bills, or even $1 bills just lying around for you to pick up. When was the last time you found a $1 bill lying around? This is market efficiency at work.In support of this theory, many studies have shown that picking stocks by throwing darts at the stock table is just as likely to earn you profits as listening to the "market experts." In fact, the Wall Street Journal publishes an ongoing feature that pits investment professionals’ stock picks against stocks picked at random by throwing darts at a stock quotations page.” (EconEdLink)

3. Explain trends in marketing: buy low, sell high.4. Go to the computer lab and complete the Interactive Activity .5. Complete the tutorial on probability from

http://www.mathgoodies.com/lessons/vol6/intro_probability.html

Differentiated Instruction:This lesson incorporates lecture, an interactive web activity, and a constructed response questionnaire. Students may complete the internet tutorial on probability via traditional pencil and paper.

Technology Integration:Students will use the internet to conduct a decision making activity showing the probability of stock prices and investment making. They will also complete an internet tutorial about probability.

Assessment:Students will be assessed based on their completion on the probabilities internet workshop.

Title: Will you Make Millions or Lose Your Shirt?

Time Frame: 1 – 2 class periods

See the Standards attached for the relation to this unit.:

Objectives: Analyze the historical movement of the stock market Determine why it is important to invest money over long terms rather than trends Explain how certain key statistics (P/E ratio, Dividend Yield, and Interest rates) are used

in estimating stock values.

Resources:America: History of Our Nation textbook Chapter 22-23Internet AccessSmart BoardLCD projection screenPencils and paperCalculatorsExcel

Procedure:1. Define key terms: Dividend Yield, Interest rates, P/E ratio

a. 1. Price/Earnings (P/E) ratio: This ratio describes how much one is paying for every dollar a company earns. For example, if a company's stock price is $15 per share, and it earned $1 per share over the preceding year, its P/E ratio would be 15. To give you some historical perspective, the average P/E ratio over the last 80 years has been 15.7. As of 4/15/2002 the average P/E for the largest 500 stocks was 25. All else equal, the lower the P/E ratio, the less expensive stock prices are.2. Dividend Yield: Many stocks pay dividends. Dividends are payments to shareholders from the company's earnings. The dividend yield is the dividend divided by the share price. As an example, suppose you buy stock at $10 a share and the company pays $1 per share in dividends. In this case, the dividend yield would be $1/$10 = 10 percent. For historical perspective, consider that the average dividend yield over the last 80 years has been 4.39 percent. At the end of the year 2001, it was 1.5 percent . All else equal, the higher the dividend yield, the more attractive stocks are. 3. Interest Rate: The one-year interest rate tells you how much you can expect to earn on bonds over the next year. Bonds are fixed-income instruments that guarantee a fixed return. Think of them as savings bonds that you may have. The higher the interest rate, the more bonds pay and the less attractive stocks will be. Thus, as interest rates rise, stock prices generally fall as investors move money out of stocks and into bonds. Conversely, as interest rates decline, investors move wealth from bonds and into stocks.

2. Work on the Interactive Activity in the computer lab.a. Try to accumulate as much wealth as possible through investing or saving in

banks. The market will fluctuate based on historical events through time. Try to predict what happens and move your money accordingly.

3. Record the Internet Activity data in an Excel spreadsheet.

4. Put your data in a line graph:

5. Go back and run the demonstration again: Choose different decisions this time, and plot the information on the same graph.

6. Determine the percent change over time by the decisions you made.

Differentiated Instruction:Students will utilize the internet for a historical decision making activity. If students would rather plot their information on paper rather than Excel, they may do so. They can also use Inspiration Data if available in the school.

Technology Integration:Students will utilize the internet and Microsoft Excel. They will also view a presentation defining the terms of the activity.

Assessment:Answer: Can you predict how the market will react to historical events? Which events made the market go up? Which events made it go down?

Title: Environmental and physical toll of the depression

Time Frame: 2 class periods

See the Standards attached for the relation to this unit.:

Objectives: Plot the data from the Dust Bowl storms into an excel spreadsheet and convert it

into a bar graph. Map out the area of the storms into Google Earth. Measure how far some of the storms took some of the dirt, plot it with Google

Earth.

Resources:America: History of Our Nation textbook Chapter 22 - 23Internet AccessSmart BoardLCD projection screenPencils and paperCalculatorsGoogle Earth

Procedure:1. View http://www.geocities.com/Athens/Atrium/3005/dustbowl.html pertaining

to the situations of the Dust Bowl. 2. Plot the data for one year from the website into an excel spreadsheet – it is

already in a table, so this is primarily copy and paste work. 3. Show different graphs comparing the duration, visibility, wind speed, etc. of all

of the storms in the great depression. 4. Compare the data to assess which one was the most damaging storm. 5. Plot the area of extent of the Dust Bowl on the Great Plains into Google

Earth. 6. Use the measurement tool in G.E. to try and measure how vast the storms

were. 7. Determine the approximate area of the Dust Bowl.

Differentiated Instruction:Students may utilize traditional graphing techniques, maps, and printed tables. This lesson is differentiated through the use of different technology tools, and focuses on math and social studies related content.

Technology Integration:Google Earth combines math and geographical skills.Microsoft Excel spreadsheets help focus on the data and math components.The internet is a fundamental resource in our lessons.

Assessment:Students will be printing out their maps and charts to compare with their classmates. The data will be analyzed and the completion of all of these steps will result in the successful completion of this project.

Title: Stock Market: Should I invest today?

Time Frame: open ended

Objectives:

Resources:America: History of Our Nation textbook Chapter 22-23Internet AccessSmart BoardLCD projection screenPencils and paperCalculatorsNewspapersComputer programshttp://www.stockmarketgame.com/

Procedure:1. PowerPoint presentation on the stock market2. Introduce the Stock Market Project game3. Begin the Stock Market Game4. Continue working through monitoring stocks for as long as desired by the

instructor. 5. This project can be manipulated or not, depending on the level of interest and

the ability of the students in the classes.

Differentiated Instruction:This part of the lesson involved the integral stage of putting the knowledge to work for the students. This is a necessary step to help them with higher order thinking skills as well as the practical uses of the knowledge gained. There are different ways to go about the project from using the newspapers, to using internet sites that are continually updating stock prices. Students can choose a little stock, or a lot, but they will be able to compare their decisions to that of the teacher and the rest of the class. The incentive for doing well would be to beat the class and win extra credit points for the semester.

Technology Integration:Basic computer programs will be needed to access the internet, research and plot information in Excel, and do the formal write ups in Microsoft Word.

Assessment:See the screen capture for the grading rubric for the overall project.

Standards:

Top of Form NY- New York State Core Curriculum (updated)  

 Subject : Mathematics (Revised March 2005)  

 Grade : Grade 8  

 Strand : Measurement Strand  

 Standard : Students will determine what can be measured and how, using appropriate methods and formulas.  

 Indicator : Units of Measurement 8.M.1 Solve equations/proportions to convert to equivalent measurements within metric and customary measurement systems Note: Also allow Fahrenheit to Celsius and vice versa.

 

 Strand : Problem Solving Strand  

 Standard : Students will build new mathematical knowledge through problem solving.  

 Indicator : 8.PS.1 Use a variety of strategies to understand new mathematical content and to develop more efficient methods  

 Indicator : 8.PS.2 Construct appropriate extensions to problem situations  

 Indicator : 8.PS.3 Understand and demonstrate how written symbols represent mathematical ideas  

 Strand : Communication Strand  

 Standard : Students will use the language of mathematics to express mathematical ideas precisely.  

 Indicator : 8.CM.9 Increase their use of mathematical vocabulary and language when communicating with others  

 Indicator : 8.CM.10 Use appropriate language, representations, and terminology when describing objects, relationships, mathematical solutions, and rationale  

 Indicator : 8.CM.11 Draw conclusions about mathematical ideas through decoding, comprehension, and interpretation of mathematical visuals, symbols, and technical writing  

 Strand : Connections Strand  

 Standard : Students will recognize and apply mathematics in contexts outside of mathematics.  

 Indicator : 8.CN.6 Recognize and provide examples of the presence of mathematics in their daily lives  

 Indicator : 8.CN.7 Apply mathematical ideas to problem situations that develop outside of mathematics  

 Indicator : 8.CN.8 Investigate the presence of mathematics in careers and areas of interest  

 Indicator : 8.CN.9 Recognize and apply mathematics to other disciplines, areas of interest, and societal issues  

 Subject : Social Studies (June 1996)  

 Standard : Standard 1: History of the United States and New York  

 Level : Intermediate  

 Key Idea : 1. The study of New York State and United States history requires an analysis of the development of American culture, its diversity and multicultural context, and the ways people are unified by many values, practices, and traditions. Students:

 

 Performance Indicator : explore the meaning of American culture by identifying the key ideas, beliefs, and patterns of behavior, and traditions that help define it and unite all Americans

 

 Performance Indicator : interpret the ideas, values, and beliefs contained in the Declaration of Independence and the New York State Constitution and United States Constitution, Bill of Rights, and other important historical documents.

 

 Key Idea : 4. The skills of historical analysis include the ability to: explain the significance of historical evidence; weigh the importance, reliability, and validity of evidence; understand the concept of multiple causation; understand the importance of changing and competing interpretations of different historical developments. Students:

 

 Performance Indicator : consider the sources of historic documents, narratives, or artifacts and evaluate their reliability  

 Performance Indicator : understand how different experiences, beliefs, values, traditions, and motives cause individuals and groups to interpret historic events and issues from different perspectives

 

 Performance Indicator : compare and contrast different interpretations of key events and issues in New York State and United States history and explain reasons for these different accounts

 

 Performance Indicator : describe historic events through the eyes and experiences of those who were there. (Taken from National Standards for History for Grades K-4)  

 Standard : Standard 4: Economics  

 Level : Intermediate  

 Key Idea : 2. Economics requires the development and application of the skills needed to make informed and well-reasoned economic decisions in daily and national life. Students:  

 Performance Indicator : identify and collect economic information from standard reference works, newspapers, periodicals, computer databases, textbooks, and other primary and secondary sources

 

 Performance Indicator : evaluate economic data by differentiating fact from opinion and identifying frames of reference  

 Key Idea : 1. The study of economics requires an understanding of major economic concepts and systems, the principles of economic decision making, and the interdependence of economies and economic systems throughout the world. Students:

 

 Performance Indicator : define basic economic concepts such as scarcity, supply and demand, markets, opportunity costs, resources, productivity, economic growth, and systems

 

 Performance Indicator : understand how scarcity requires people and nations to make choices which involve costs and future considerations  

 Performance Indicator : understand how people in the United States and throughout the world are both producers and consumers of goods and services  

  USA- ISTE: National Educational Technology Standards for Students: The Next Generation  

 Standard : 1. Creativity and Innovation- Students demonstrate creative thinking, construct knowledge, and develop innovative products and processes using technology.  

 Indicator : Students: a. apply existing knowledge to generate new ideas, products, or processes.  

 Indicator : Students: b. create original works as a means of personal or group expression.  

 Indicator : Students: c. use models and simulations to explore complex systems and issues.  

 Indicator : Students: d. identify trends and forecast possibilities.  

 Standard : 4. Critical Thinking, Problem-Solving & Decision-Making- Students use critical thinking skills to plan and conduct research, manage projects, solve problems and make informed decisions using appropriate digital tools and resources.

 

 Indicator : Students: d. use multiple processes and diverse perspectives to explore alternative solutions.