Lesson Notes By Weeks and Term - Senior Secondary 1

Term: 3^rd Term

Week: 6

Class: Senior Secondary School 1

Age: 15 years

Duration: 40 minutes of 2 periods each

Date:       

Subject:      Economics

Topic:-       Money

SPECIFIC OBJECTIVES: At the end of the lesson, pupils should be able to

1. Define capital market
2. List some institutions involved in the capital market
3. State the importance of the capital market
4. Differentiate between the money market and capital market

INSTRUCTIONAL TECHNIQUES: Identification, explanation, questions and answers, demonstration, videos from source

INSTRUCTIONAL MATERIALS: Videos, loud speaker, textbook, pictures

INSTRUCTIONAL PROCEDURES

PERIOD 1-2

PRESENTATION	TEACHER’S ACTIVITY	STUDENT’S ACTIVITY
STEP 1 INTRODUCTION	The teacher reviews the previous lesson on Money	Students pay attention
STEP 2 EXPLANATION	She explains the meaning of capital market. She lists the institutions involved in the capital market and states the importance of the capital market	Students pay attention and participates
STEP 3 DEMONSTRATION	She further differentiates between the money market and the capital market	Students pay attention and participate
STEP 4 NOTE TAKING	The teacher writes a summarized note on the board	The students copy the note in their books

 

NOTE                        

CAPITAL MARKET

Capital Market is a market for medium-term and long-term loans. The capital market serves the needs of Industry and the commercial sector. It comprises all the institutions which are concerned with either the supply of or demand for long-term capital..

 

INSTRUMENTS USED IN CAPITAL MARKET

Instruments used in capital market are mainly stocks and shares. Stocks and shares are securities purchased by individuals, which are evidence of contributing part of the total capital used in running an existing industry.

 At the end of a normal business year, stock and share holders receive dividend as a reward for contributing the money used in running the business.

 

INSTITUTIONS INVOLVED IN THE CAPITAL MARKET

1. Insurance companies.
2. Issuing houses
3. Development banks
4. Building societies
5. National provident fund(NPF)
6. Stock exchange

 

 

IMPORTANCE OF CAPITAL MARKET

1. Provision of long-term loans: capital market provides long-term loans to the private and public sectors for investments.
2. Mobilization of savings: savings are mobilized in the capital market through the transfer of security.
3. Growth of merchant banks: the existence of capital market helps the growth and development of merchant banks.

• General running of the economy: the existence of capital market encourages the general public to participate in the running of the economy of the country.

 

DIFFERENCES BETWEEN MONEY MARKET AND CAPITAL MARKET

Basis	Money Market	Capital Market
Period of Finance	Money market is a market for short term fund. The maturity of Instruments ranges from 1-12 months.	Capital market is a market for medium/long term fund. The maturity of capital market instrument takes minimum of one year.
Link	Money market is a link between borrowers and lenders for short term needs.	Capital market is a link between investors and borrowers for long term needs
Risk	Instruments of money market are safe and less risky.	Capital market instruments are riskier than investment in money market.
Use of fund	Fund mobilized through money market are used for financing current business operation, working capital requirement, short term required funds by government.	Supplies fund for financing capital requirements of corporate entities and long term requirements of government.

 

EVALUATION:    1. Define capital market

2. State three institutions involved in the capital market
3. Highlight three importance of the capital market
4. Discuss three differences between the money market and the capital market

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively