Lesson Notes By Weeks and Term - Senior Secondary 2

Benefits of capital market

Get it on Google Play
Get it on the Apple App Store
  1. Home
  2. Lesson Notes By Weeks and Term
  3. Senior Secondary 2
  4. Benefits of capital market

Term: 3rd Term

Week: 5

Class: Senior Secondary School 2

Age: 16 years

Duration: 40 minutes of 2 periods each

Date:       

Subject:      Financial accounting

Topic:-       Benefits of capital market

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

  1. State the benefits of capital market to individual investor.
  2. State the benefits of capital market to government.

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 capital market

Students pay attention

STEP 2

EXPLANATION

She states the benefits of capital market to individual investors

 

Students pay attention and participates

STEP 3

DEMONSTRATION

She states the benefits of capital market to government

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

BENEFITS OF CAPITAL MARKET

INDIVIDUALINVESTORS

  1. Benefit of earning additional income: investors benefit from the potential to earn additional income from the assets they purchase.
  2. Benefit of higher liquidity from investment: when investors purchase stocks, bonds and other securities, they benefit from higher liquidity in their investment portfolio.
  3. Benefit of regular returns: investors benefit from regular and fixed returns on the assets they purchase. It may be in the form of yearly dividends from shares purchased.
  4. Risk benefit: investor also benefit because the financial assets they purchase in capital markets are risk free. The potential for loss is nearly zero.
  5. Benefit of right issue: investors in shares also benefit in right issues floated by companies.

 

BENEFIT OF CAPITAL MARKET TO GOVERNMENT

The following are benefits derived by Government from the capital market:

  1. Access to funds for projects: government can access further funds from the capital market to execute some capital projects.
  2. Access to cash: capital market provides government with easy access to cash for short-term use. E.g. For recurrent expenditure such as payroll expenses.
  3. Tax benefits: companies that participate in the capital market pay taxes.
  4. Budget financing benefit: government can also raise certain amount from the capital market that will help in financing part of the budget.

 

EVALUATION:    1. Mention 4 benefits of the capital market to individual

                             investors.

  1. Mention 3 benefits of capital market to government.
  2. 3. State two differences between stock and bond

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively