Interactive: How does company news affect stock prices?
Here's a Kahoot ("Stock Prices: Up or Down?") for students to test their intuition on how news about popular companies affects their stock prices on the day of the announcement. Students love making predictions and this game has some surprising results which will lead to some interesting discussion. Each question takes the form of company news and students predict how the stock price moved on the day the news came out.
What's the objective of this interactive? For students to learn:
- News sometimes move company stock prices in ways that you wouldn't anticipate
- When companies surprise investors, their stocks tend to be volatile
- As investors, it's hard to predict how companies will perform in the future which explains why surprises occur quite frequently
Here's a sample question:
Here's another interactive that demonstrates to students the futility of trying to time the stock market.
About the Author
Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.
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