|Objective||To teach kids how to choose stocks based on Fundamental Analysis.|
Fundamental Analysis is a way of choosing stocks where you look at a company's earnings per share, price to earnings ratio, projected earnings growth, dividend yield, dividend payout ratio and so on to analyze the value of a stock.
1. Look up what "fundamental analysis" is and talk about it with family or friends. Also find definitions to the following terms:
2. Get a financial newspaper or go to a market website like money.cnn.com and look at a couple of different stocks.
3. Talk to family and friends and find out what fundamental analysis is. Ask an adult how is interested in the stock exchange if he/she uses fundamental analysis to choose stocks. If they do ask them if they will demonstrate how they do it.
4. Choose a couple of stocks and perform a technical analysis on each one. Try to keep tabs on your stocks for about a year.
5. From time to time look and see how your stocks are doing.
Mark this activity as complete when you have a good understanding of fundamental analysis and you have performed this to evaluate the quality of at least one stock.
Track your progress and earn badges!
This activity is included in the following:
|Age Range||14 15 16 17 18|
|Tags||Logical-Mathematical Intelligence Investing Stocks|
|About.com: Stocks||Here is an article which provideds an introduction to stocks and here is an article on Fundamental Analysis .|
|Education.com||Here is an article about teaching your child to invest .|
|Wikipedia||Here is a Wikipedia post about the Stock Market .|