BUSINESS dotty share prices Overview This activity tests students knowledge of the factors that cause movements in share prices, in a way that learners should enjoy. It is probably best done after some introduction to concepts such as rights issues and the impact of suspected takeovers have on share prices. Resources needed: Teacher script A copy of the dot-to-dot sheet, one per student Teaching and Learning Strategy 1 Give each student a dot-to-dot sheet. 2 Explain the idea of the task is to complete the dot to dot sheet in front of them to make a picture, however half the dots should not be used. They will need to demonstrate their knowledge of share prices in order to correctly complete the image. Read the following script, allowing time for students to make their decisions.
Dotty Share Prices Imagine we are looking at events that happened to a company operating in the UK that makes smartphones. I will read out a statement and you will need to decide if the event would increase or decrease this firm s share price. Place your pencil on dot one. Profits are announced and they are 15% higher than expected. If you think this would increase the share price, draw a line to dot two. If you think this would decrease the share price, draw a line to dot three. The company s new smartphone is getting good reviews and sales are strong. If you think this would increase the share price, draw a line to dot four. If you think this would decrease the share price, draw a line to dot five. Unemployment is rising and recession in the UK is feared. If you think this would increase the share price, draw a line to dot six. If you think this would decrease the share price, draw a line to dot seven. The Bank of England reduces interest rates. If you think this would increase the share price, draw a line to dot eight. If you think this would decrease the share price, draw a line to dot nine. A large scale product recall is announced. If you think this would increase the share price, draw a line to dot ten. If you think this would decrease the share price, draw a line to dot eleven. Finding it difficult to secure a bank loan, the company announces a large rights issue. If you think this would increase the share price, draw a line to dot twelve. If you think this would decrease the share price, draw a line to dot thirteen. There is a rumour that the company may be taken over by another firm. If you think this would increase the share price, draw a line to dot fourteen. If you think this would decrease the share price, draw a line to dot fifteen. The CEO announces payment of dividends to shareholders this year is unlikely. If you think this would increase the share price, draw a line to dot sixteen. If you think this would decrease the share price, draw a line to dot seventeen.
Dotty Share Prices The smartphone industry is reported as performing well and growing rapidly. If you think this would increase the share price, draw a line to dot eighteen. If you think this would decrease the share price, draw a line to dot nineteen. The government announce an additional environmental tax on all companies producing products using batteries. If you think this would increase the share price, draw a line to dot twenty. If you think this would decrease the share price, draw a line to dot twenty-one. A key supplier withdraws its line of credit. If you think this would increase the share price, draw a line to dot twenty-two. If you think this would decrease the share price, draw a line to dot twenty-three. Investor confidence is buoyant, with the stock market being at an all-time high. If you think this would increase the share price, draw a line to dot twenty-four. If you think this would decrease the share price, draw a line to dot twenty-five. The company is reported in the media to be suspected of using sweat shop labour in its factories. If you think this would increase the share price, draw a line to dot twenty-six. If you think this would decrease the share price, draw a line to dot twenty-seven. Now draw a line to dot twenty-eight and a line between dot 2 and dot 18. What have you drawn?
3 9 7 8 11 5 4 2 18 1 3 10 12 13 14 17 20 19 16 15 22 26 21 27 28 Dotty Share Prices 24 23 25
3 9 7 8 11 5 4 2 18 1 3 10 12 13 14 17 20 19 16 15 22 26 21 27 28 Dotty Share Prices 24 23 25