The Stock Market

​What percentage of 18 to 29 year olds are investing in the stock market?

Answer the following on your worksheet

1. When a company lists its stock on an exchange, it means investors can buy its stock. How does this benefit the company?

2. What are the two ways that investors can make money from stocks?

3. As an investor, what are the risks involved with buying one company’s stock?

A series of decisions

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Timing the Market

Part I: The Scenario

You have $1800 to invest, after working all summer

A Ravioli Den just opened in your city’s downtown and they’ve had a line out the door since. It’s a fast food chain restaurant specializing in ravioli that everyone has been raving about.

You decide to invest in Ravioli Den. Let’s see what you decide next and how your investment performs!

Follow your teacher’s directions to complete the tables on the worksheet. Remember, you start with $1800 in cash and you use it to purchase shares at today’s price.

You have $1800.

Shares of Ravioli Den are currently trading at $60.

Because you worked all summer to save money specifically for investing, you must buy some shares in the first round. Choose how many shares you’ll buy.

You look at the closing prices for Ravioli Den in the last week, and here’s what you see:

Will you sell shares, buy shares, or hold next Monday morning?

Round 2 Price

​Round 3

One of your friends missed school yesterday. When you ask why, he says he ate at Ravioli Den the previous night and got food poisoning. Two girls from your calculus class say the same thing, and your grandma also got sick after eating there last week.

You check online to see if it’s a reported problem, but you don’t find anything to support that.

Will you sell shares, buy shares, or hold?

Round 3 Price

Will you sell shares, buy shares, or hold?

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Round 4

Round 4 Price

From a national newspaper...

Will you sell shares, buy shares, or hold?

Round 5 Price

Ravioli Den’s most popular menu item is also its most expensive -- the lobster ravioli. The dish is $12.45, while most of the other ravioli sells for $8.50 to $10.25. Rumor has it their lobster supplier has had a bad fishing season, and the Den is going to raise prices on the lobster ravioli to $14.45. Analysts are suspecting the Ravioli Den share price is about to plummet.

Will you sell shares, buy shares, or hold?

Round 6 Price

Will you sell shares, buy shares, or hold?

Round 7 Price

Pasta Palace - selling ravioli, tortellini, and lasagna - opens in your neighborhood. There are huge crowds, and the lines at Ravioli Den decrease except on Discount Tuesdays. On Yelp, reviewers say Pasta Palace’s ravioli aren’t as good, but they offer much more variety. Pasta Palace has 150 locations nationwide.

Will you sell shares, buy shares, or hold?

Round 8 Price

Ravioli Den signs an endorsement deal with NBA star Zion Williamson, who will appear in their print ads and in TV and online commercials.

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ROUND 9

Will you sell shares, buy shares, or hold?

Round 9 Price

The founding CEO of Ravioli Den announces she is stepping down at the end of the week, without explaining why. The current VP of Operations will hold the interim CEO position until Ravioli Den can find a permanent replacement.

Will you sell shares, buy shares, or hold?

Round 10 Price

• Complete the reflection questions on your worksheet.

• When you are done, start looking at the stock market project. We will be going over it in detail in a moment.