**Lesson Plan: Senior Secondary 2 Financial Accounting**
**Topic: Methods of Raising Funds from the Capital Market**
**Lesson Duration: 60 minutes**
**Objective:**
By the end of this lesson, students will be able to:
1. Define what the capital market is.
2. List and describe various methods of raising funds from the capital market.
3. Understand the advantages and disadvantages of each method.
4. Apply these concepts to hypothetical business scenarios.
**Materials:**
- Whiteboard and markers
- PowerPoint presentation with key concepts
- Handouts with summary notes, diagrams, and case studies
- Videos illustrating the capital market and fundraising methods
- Internet access for interactive activities
- Notebooks and pens
**Key Terms:**
- Capital Market
- Equity Financing
- Debt Financing
- Initial Public Offering (IPO)
- Rights Issue
- Private Placement
- Bonds
- Convertible Securities
**Lesson Outline:**
**1. Introduction (10 minutes)**
- **Greeting and Settle-In (2 minutes):**
- Welcome students and take attendance.
- Briefly introduce the topic.
- **Warm-Up (3 minutes):**
- Ask students what they already know about the term "capital market."
- Discuss the importance of the capital market in fundraising for businesses.
- **Objective Sharing (2 minutes):**
- Clearly state the objectives of the lesson and what students should expect to learn.
- **Transition (3 minutes):**
- Offer an example of a popular company raising funds from the capital market (e.g., Facebook's IPO).
**2. Instructional Input (20 minutes)**
- **Definition and Overview of the Capital Market (5 minutes):**
- Explain what the capital market is and its role in business financing.
- Use a PowerPoint slide to illustrate key points.
- **Methods of Raising Funds (15 minutes):**
- Explain the following methods with examples, advantages, and disadvantages:
- Equity Financing
- Debt Financing
- Initial Public Offering (IPO)
- Rights Issue
- Private Placement
- Issuing Bonds
- Convertible Securities
- Use visual aids like charts and diagrams to explain complex terms.
**3. Guided Practice (15 minutes)**
- **Interactive Case Study (10 minutes):**
- Divide the class into small groups.
- Provide each group with a case study of a company needing funds.
- Ask each group to decide which method(s) they would use to raise funds and to justify their choice.
- Provide guidance and assistance while they discuss.
- **Groups Present (5 minutes):**
- Each group presents their case study findings to the class.
- Allow peer feedback and offer constructive criticism.
**4. Independent Practice (10 minutes)**
- **Individual Worksheet Activity (10 minutes):**
- Distribute a worksheet with multiple-choice questions and short-answer questions related to today's lesson.
- Ask students to complete it individually.
- Collect worksheets and provide feedback in the next class.
**5. Conclusion (5 minutes)**
- **Recap (3 minutes):**
- Summarize the key points covered in the lesson.
- Highlight the importance of choosing the right method for raising funds.
- **Q&A (2 minutes):**
- Open the floor for any questions.
- Encourage students to think about how these concepts apply to real-world scenarios.
**6. Homework/Assignment (given at the end of the class)**
- **Assignment:**
- Write a one-page essay on a recent IPO or fundraising event by a well-known company, discussing the chosen method and its implications for the company.
- Submit in the next class.
**Assessment:**
- Evaluate students' understanding through their participation in the group activity.
- Check the accuracy and comprehensiveness of answers in the individual worksheet.
- Review the quality and depth of analysis in the homework essay.
**Reflection:**
After the lesson, reflect on what worked well and what did not. Adjust future lessons based on student understanding and feedback.
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**Notes:**
- Ensure that the lesson is interactive to keep students engaged.
- Use real-world examples as much as possible to illustrate concepts.
- Incorporate different teaching methods (e.g., visual, auditory, kinesthetic) to cater to various learning styles.