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Business Lesson 3 Demanding celebs Aim: to understand what affects share prices How do you make a return from changes in share prices For starters… Use the newspapers/magazines you’ve brought in, or the ‘Daq Diary , to list any upcoming celebrity events. What celebrities will be involved?
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Business Lesson 3 Demanding celebs Aim: to understand what affects share prices How do you make a return from changes in share prices Lesson 3: Demanding celebs
For starters… • Use the newspapers/magazines you’ve brought in, or the ‘Daq Diary,to list any upcoming celebrity events. What celebrities will be involved? • Extension: how do you expect the shareprice of these celebrities will be affected? Lesson 3: Demanding celebs
By the end of today, you will be able to • explain how changes in demand cause changes in price. • explain how dividends affect demand. • come up with a trading strategy based on earning dividends and capital gains. Lesson 3: Demanding celebs
Remember your mission • This week we’ll learn one way to accomplish your mission: to sell shares for more than you buy them (called capital gains or day-trading). • What do you think affects share prices? To make as much money as possible by investing imaginary money in celebrity shares. Lesson 3: Demanding celebs
Which would you pay more for? • An ice cream on • a cold winter day or • a hot summer day? • A Christmas tree on • December 1st or • January 1st? • A bottle of water in • London or • the middle of the desert? Lesson 3: Demanding celebs
Demand? • Demand is the willingness and ability to buy a good or a service. • If demand for a share decreases, what will happen to its price? • Extension: research how supply affects the price of goods and services, and how this relates to Celebdaq (hint: share supply does not change once shares are issued). Lesson 3: Demanding celebs
Many factors affect demand… • The most important one is the share dividend. • Remember, dividends are paid out every Friday on each share you own. • The ideal celebrity offers a high dividend at a low price. Lesson 3: Demanding celebs
Reaping the dividends • The relationship between dividend and price is called the dividend yield. • Do you think investors prefer high or low dividend yields? Why? • A useful hint: find out about potential dividends! Dividend yield = dividend ÷ price × 100 Lesson 3: Demanding celebs
If a celebrity’s press coverage increases… • Is the dividend the only thing which affects demand? Lesson 3: Demanding celebs
Extension activity/homework • Complete the worksheet on demand. This will help you make dividends and capital gains! Lesson 3: Demanding celebs
Invest! • Choose the 3 celebrities that you expect will bring in the biggest capital gains and dividends during the week. Lesson 3: Demanding celebs
Celebwork Track one of your investments. Cut out/print any news stories about them during the week and bring these in next lesson. Lesson 3: Demanding celebs