Tuesday, April 26, 2011

Honors Business Economics: 27 April 2011

Prayer
Beyond the Sound Bites (if time after the Quiz):
The Chapter 10 Section 3 Quiz is today.

Clear your desk except for a pencil. Once everyone is quiet, and no talking during the Quiz, we can begin. Be sure to put your name on the Quiz and the Scantron. You may write on both the Quiz and the Scantron.

If you finish early, you may take out non-class materials; once everyone is finished, put away the non-class materials. Then, I will collect the Scantron first, and then I will collect the Quiz.

Be sure your name is on both the Scantron and the Quiz.

If your name is not on the Quiz it will not be returned.


Bokhari v. Nashville, Nashville’s Sedan Drivers Fight City Effort To Run Them Off the Road

The Chapter 10 Section 2 Quiz Make-up is today.

The Chapter 10 Section 1 Quiz Make-up is today.

The Chapter 9 Test Make-up is today.

The Quiz 9.(4) Prep Page is available.

For the Make-up Quiz, consider the material found in Chapter 9 Section 3:

minimum tax, VAT (Value-Added Tax), flat tax, federal tax reform, business taxes, profits, tax burden, personal income rate, depreciation, investment tax credit, and, capital gains.

Cf. http://shanawiki.wikispaces.com/Honors+Business+Economics+Chapter+9+Section+4+Quiz+Prep+Page+Spring+2011

Standard feature:

The electronic edition of the Philadelphia Inquirer is available. We have the Sunday edition, available on Mondays, in addition to the Tuesday through Friday editions on the other days.

Please follow the steps below:

URL: http://nie.philly.com
Click on the words "Access e-Inquirer" located on the gray toolbar underneath the green locker on the opening page.
Login:
Username: bshsinky@shanahan.org
Password: 10888

Chapter 11 Resources

Cf. http://glencoe.mcgraw-hill.com/sites/0078747643/student_view0/unit3/chapter11/chapter_overviews.html

Chapter 11: Financial Markets

11.3 Investing in Equities and Options

4th

portfolio diversification

In-class assignment, with a partner, answer the following.

Faculty Focus: Don Chance speaks about portfolio diversification, 2:37

Why is portfolio diversification important?
What popular expression reflects this view?
What shouldn't you do?
What is the lesson?



Faculty Focus, a new video series from the E. J. Ourso College of Business, showcases research faculty in regular installments. In this episode, Dean Eli Jones interviews James C. Flores Endowed Chair of MBA Studies and Professor of Finance Don Chance about how investors should be diversifying their portfolios.

7th

mutual fund

In-class assignment, with a partner, answer the following.

Investment Basics: How Do Mutual Funds Work? 1:12

How do mutual funds work?
What do they charge?
Where do you find information about them?



net asset value (NAV)

401(k) plan

In-class assignment, with a partner, answer the following.

What will companies encourage their employees to do?
Do you pay taxes on these monies?
Can you take the money out at any time?

Finance & Investment Tips: 401k Plan Benefits, 1:25



Benefits of a 401k retirement savings plan include tax-free deductions, which could affect an individual's adjusted gross income, and receiving matching financial contributions from an employer. Understand the benefits of a 401k savings plan with tips from a registered financial consultant in this video on finance and investment.

Expert: Patrick Munro

stock exchange

In-class assignment, with a partner, answer the following.

When did the NYSE begin?
What famous person went there often?
What does the Exchange mirror?

Stock Market: History of the New York Stock Exchange, 2:26



The New York Stock Exchange began in 1792, with people exchanging certificates at a common meeting place for George Washington. Learn about the movement of the New York Stock Exchange over the years with help from a personal asset manager in this free video on investing in the stock market and money management.

Expert: Roger Groh

securities exchange

In-class assignment, with a partner, answer the following.

Personal Finance: What Is the Securities & Exchange Commission (SEC)? 1:37

What is the Securities and Exchange Commission?
What limits their power?
Is it a bi-partisan commission?
Are stockbrokers under their supervision?



The Securities and Exchange Commission is a regulatory group for financial advisers. Learn about the Securities and Exchange Commission, or SEC, with information from a financial planner in this video on personal finance and the stock market.

Expert: Chris Markowski

over-the-counter market (OTC)

In-class assignment, with a partner, answer the following.

Over the Counter Vs. Exchange Traded Markets, 5:15

What is the difference between Over-the-Counter vs. Exchange Traded Markets?
Forex stands for Foreign Exchange.
What are the the four characteristics of Over the Counter Markets?
a)
b)
c)
d)
What is the market made up of?
What is its advantage?



A lesson explaining the difference between exchange traded and over the counter markets for forex traders, currency traders, and foreign exchange traders.

Dow Jones Industrial Average

Beginner Investing: What Is the Dow Jones Industrial Average? 1:25

In-class assignment, with a partner, answer the following.

What is the Dow Jones Industrial Average?
How many firms make up the index?
They are a good ______________ of the market?
How is the average indicated?
What colors are used?



The Dow Jones Industrial Average is a company stock index made up of 30 American companies that have been around for a long time. Discover how the Dow Jones is used as a snapshot reference of the market on any given day with help from a registered financial consultant in this video on investments and personal finance.

Expert: Patrick Munro


Standard & Poor's 500 (S&P 500)

In-class assignment, with a partner, answer the following.

Financial Planning & Investment Tips: S&P 500, 1:27

What is the S&P 500?
How many firms make up the index?
Why is this described as blue-chip?
Where are many of their sales made these days?



The S&P 500 is an index of the top 500 companies in the U.S. stock exchange. Find out more about the S&P 500 with tips from a registered financial consultant in this video on financial planning.

Expert: Patrick Munro

bull market

Beginner Investing: What Is a Bull Market? 1:16

In-class assignment, with a partner, answer the following.

What is a Bull Market?
What do people do in this market?
What may happen?
What is the opposite of a bull market?



A bull market is a market that is strong and moving upwards on a regular basis, and this market has people who are investing and moving the economy. Discover how stocks can become overvalued in a bull market with help from a registered financial consultant in this video on investments and personal finance.

Expert: Patrick Munro

bear market

In-class assignment, with a partner, answer the following.

Personal Finance: What Is a Bear Market? 1:18

What is a bear market?
What are investors afraid of?
Why might you embrace a bear?
Would invest in the short-term, or the long term?



Bear markets generally occur over a long period and are marked by widespread pessimism. Discover how bear markets can help investors with tips from a financial planner in this video on personal finance and the stock market.

Expert: Chris Markowski

spot market

futures contract

In-class assignment, with a partner, answer the following.

Investopedia Video: How Do Futures Contracts Work? 1:38

What can a futures contract do?
What can companies do to ensure their profits?
This situation includes two words that begin with the letter "r."
What are they?



Futures contracts are one of the most important financial innovations in history, but they are often misunderstood. Find out this contract is used to transfer risk between different parties.

option

call option

In-class assignment, with a partner, answer the following.

Investopedia Video: Call Option Basics, 1:27

What are call options?
As an example, what does Ken do and why?
How is Bob involved?
What do call options offer?



Call options offer investors a way to leverage their capital for greater investment returns. Find out more about these financial contracts and how they work.

put option

In-class assignment, with a partner, answer the following.

Investopedia Video: Put Option Basics, 1:14

Why does Jim use a put option?
What is his life situation?
What is the only thing he loses?
How does Dan use a put option?
What does a put option allow an investor to do?



Put options allow investors to hedge an investment they own or speculate in an investment they don't own. Find out more about this type of option and how it can work in an investor's favor.

11.3 Reading Strategy

In-class assignment, with a partner, fill in the graphic.

Use the graphic organizer to describe the different stock markets.

Companies in the News Snowfall Futures

Stocks and Efficient Markets

Share Values

Stock Market Efficiency

Mutual Funds

401(k) Plans

In-class assignment, with a partner, answer the following.

Reading Check

Explaining

What determines the value of a stock?

In-class assignment, with a partner, answer the following.

Figure 11.7 How Much Money Will You Have at Retirement? p. 308

Cf. http://glencoe.com/sites/common_assets/socialstudies/in_motion_08/epp/EPP_p308.swf



Stock Markets and Their Performance

Stock Exchanges

Global Economy And You, Verkaufen

Over-the Counter Markets

Measure of Performance

Bull vs. Bear Markets

In-class assignment, with a partner, answer the following.

Reading Check

Contrasting

What is the difference between an over-the-counter market and the NYSE?

Trading in the Future

In-class assignment, with a partner, answer the following.

Reading Check

Explaining

Why might a contract that takes place in the future be an advantage to the buyer or seller?

11.3 Review

In-class assignment, with a partner, fill in the graphic.

Use the graphic organizer to evaluate the risks and rewards of investments.

In-class assignment, with a partner, answer the following.

Business Week News clip

Taking Their Business Elsewhere

p. 312, #1, What has enabled investors to buy shares on overseas exchanges?

p. 312, #2, Why did SarbOx have a negative impact on American stock exchanges?

Chapter 11 Resources

Figure 11.1 Overview of the Financial System

Cf. http://glencoe.com/sites/common_assets/socialstudies/in_motion_08/epp/EPP_p291.swf

Figure 11.2 The Power of Compound Interest

Cf. http://glencoe.com/sites/common_assets/socialstudies/in_motion_08/epp/EPP_p293.swf

Figure 11.7 How Much Money Will You Have at Retirement?

Chapter 10: Government Spending

Chapter 10 Resources

Chapter 10: Government Spending Multiple Choice Quiz

Chapter 10: Government Spending ePuzzles and Games Column

Chapter 10: Government Spending Vocabulary eFlashcards

Chapter 10: Government Spending In Motion The Federal Budget for Fiscal Year 2007

Chapter 10: Government Spending In Motion State and Local Expenditures

Chapters 8-11

Cf. http://glencoe.mcgraw-hill.com/sites/0078747643/student_view0/unit3/

Chapter 10 Resources

Self-Check Quiz, Crossword, Vocabulary

Cf. http://glencoe.mcgraw-hill.com/sites/0078747643/student_view0/unit3/chapter10/

Wisconsin Labor Protests - Noodles, 1:36



Spending, 6:25



Seinfeld Risk Management, 4:17

Cf. http://www.youtube.com/watch?v=laKprX-HP94

Josh Riddle and David Rufful are seniors at Dartmouth College.


Cell phone pop, 2:03


Pop Corn téléphone portable micro-ondes by sassiere

Email (or hand in hard copy) to gmsmith@shanahan.org.

Wednesday HW
1. p. 294, #4-6
Thursday HW
1. p. 294, #7-8, p. 295, #1
Friday HW
1. p. 295, #2