"The New York Stock Exchange"Introduction
Students have already learned that the New York Stock Exchange
(NYSE) is the oldest, largest, and most prestigious of the
organized stock exchanges in the United States, and that in 2007 it merged with Euronext to become NYSE Euronext. The NYSE Euronext lists
stocks from over 8,500 companies who must meet stringent
requirements related to profitability and size. These requirements
virtually guarantee that the companies will be among the largest,
most profitable, publicly held companies. In this activity,
students will learn more about the NYSE Euronext as well as their role
as investors. Lesson Description
Students will use information from the NYSE Euronext
Web site to find out more about the exchange and their role
in the investment world. Previous Knowledge Expected
Students should be familiar with the following terms:
stock: certificate of ownership in a corporation; common
or preferred stock
stockholder: person who owns a share or shares of stock
in a corporation; same as shareholders Applied Content Standards (from the Council for Economic Education)
Standard 7: Markets exist when buyers and sellers interact.
This interaction determines market prices and thereby allocates
scarce goods and services.
Standard 18: A nation's overall levels of income, employment,
and prices are determined by the interaction of spending and
production decisions made by all households, firms, government
agencies, and others in the economy. Instructional Objectives
- Students will list reasons for the creation of the Buttonwood
Agreement.
- Students will describe the role of the NYSE Euronext
as a world leader, and reasons that people invest in stocks
and bonds.
- Students will list types of investments. Given a hypothetical
amount of money, students will select a type of investment
and give reasons for their choice.
Student Web Activity Answers
1-4: Teacher may prepare an answer sheet from the NYSE Euronext Web site. Extending the Lesson
Encourage students to read other information provided on the
NYSE Euronext Web page. At the end of each chapter in the "You & The
Investment World" section, there is a review quiz for the
students to complete.
The Securities Industry Foundation sponsors an Internet Stock
Market Game Simulation twice a year. For further information:
http://www.smgww.org/
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