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Case study worksheet
Stocks typically have great potential for growth over time — but
the higher the reward, the higher the risk.
Understanding the risks can help you make informed decisions about stock
investments. Playing an investment game can give you a feel for how different
factors can affect a stock’s price.
WHAT ARE STOCKS?
Instructions
1. Take two stock scenario strips.
2. Turn over one scenario at a time. Complete the game card
on the other side of this worksheet for the first scenario and
then the second.
Stocks are a type of
investment that gives
people a share of
ownership in a company.
3. Record your final stock price.
Playing the game
Each group starts with one share of We Make Cool Tech Stuff Inc. stock.
§ This company is a gadget and software manufacturer.
§ You paid $100 for one share of this stock.
Take two scenario strips. Each details an event that affects the company’s
stock price.
§ Review one strip at a time.
§ Record what happens on the game card.
BUILDING BLOCKS STUDENT WORKSHEET
Playing an investment game
1 of 2
Spring 2019
Game card
Scenario 1
Starting stock price
$100
Change in stock price
Double the price
Why do you think this had a positive or
negative effect on the stock price?
This had a positive effect on the companys stock
since the stock price doubled. The reason for this
was because the leading tech companuy in america
bought the comapany.
Stock price after this change
$200
Scenario 2
Stock price after scenario 1
$200
Change in stock price
Stock price went down by $80
Why do you think this had a positive or
negative effect on the stock price?
The following scenario had a negative effect on the
compay's stock price since a the stock price fell by
$80. This is because a huge lawsuit is brought
against the company becuaseof exploding batteries.
Final stock price
$120
Reflection question
How can you make a financial plan that weighs the risks and rewards of different
investment opportunities to make sure you’ll be able to meet your financial goals in
the future?
A good financial plant to follow would be to sell all stock in a company once 20% profit in accumilated
on the original investment. Although this wouldnt be as profitable as investing and holding on to the
share for a long time and reeping the benfits, this is a more safer approach.
Playing an investment game
2 of 2