### Lesson Plan: The Stock Exchange
#### Subject: Commerce
#### Level: Senior Secondary 2
#### Duration: 60 minutes
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#### Objectives:
By the end of this lesson, students will be able to:
1. Explain the concept of a stock exchange.
2. Understand the role and functions of the stock exchange in the economy.
3. Identify key stock exchanges globally and their importance.
4. Demonstrate basic knowledge of how to buy and sell stocks.
5. Understand the importance of stock market regulation.
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#### Materials Needed:
- Whiteboard and markers
- Projector and computer
- Printed handouts with key terms and definitions
- Graphs and charts showing stock market trends
- Access to internet (for live demonstration if feasible)
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#### Lesson Outline:
1. **Introduction (10 minutes)**
- Begin with a brief discussion on what students already know about the stock exchange.
- Define the stock exchange and its basic functions.
- Explain the importance of the stock exchange in the economy.
2. **Key Stock Exchanges (10 minutes)**
- Discuss major stock exchanges such as the New York Stock Exchange (NYSE), London Stock Exchange (LSE), and the Tokyo Stock Exchange (TSE).
- Highlight their locations, sizes, and unique features.
3. **Functions of a Stock Exchange (10 minutes)**
- Facilitation of capital formation.
- Providing liquidity to shareholders.
- Pricing of Securities.
- Ensuring transparency and security in transactions.
4. **How to Buy and Sell Stocks (10 minutes)**
- Explain the process of opening a brokerage account.
- Discuss the basics of placing orders: Market Orders, Limit Orders, and Stop Orders.
- Explain what buying on margin and short selling mean.
5. **Regulation of the Stock Market (10 minutes)**
- Introduce the concept of regulatory bodies such as the Securities and Exchange Commission (SEC) in the United States.
- Discuss why regulation is necessary to prevent fraud, insider trading, and to ensure fair trade practices.
6. **Interactive Activity / Live Demonstration (10 minutes)**
- If possible, show a live stock ticker or use an online simulation to demonstrate buying and selling of stocks.
- Alternatively, distribute a handout with a mock stock market activity, where students decide which stocks to buy or sell based on given data.
7. **Q&A and Recap (5 minutes)**
- Open the floor for questions and clarifications.
- Summarize the key points discussed in the lesson.
- Hand out a short assignment or reading for the next lesson.
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#### Assessment:
- Observe participation during discussions and activities.
- Check the understanding of concepts through Q&A.
- Review and provide feedback on the short assignment given.
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#### Homework/Assignments:
- Research and present on a specific stock exchange not discussed in class.
- Follow the stock price of a chosen company for a week and report on its fluctuations.
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#### Additional Notes:
- Adapt language and examples according to the local context and students' familiarity with financial terms.
- Use real-world examples to make the topic engaging and relatable.
- Encourage students to keep up with current events as the stock market is constantly influenced by global news and events.