TASK 1 Lead-in

Answer the following questions:

1. What is your understanding of the stock market? Can you explain it in your own words?

   The stock market is a platform where shares of publicly listed companies are bought and sold, determining their market value based on various factors.

2. How do you think companies raise money for their operations and expansion?

   Companies raise money for operations and expansion mainly through debt (loans or bonds) and equity (issuing shares in the stock market).

3. Do you know what an Initial Public Offering (IPO) is? If so, could you explain it?

   An Initial Public Offering (IPO) is the process where a private company offers its shares to public investors for the first time, becoming publicly traded.

4. How do you think the internet has influenced investment and the stock market?

   The internet has democratised access to financial information, enabled online trading, and accelerated communication of financial news, influencing market trends more rapidly.

5. Have you heard of any major financial crises caused by fluctuations in the stock market? If so, can you share what you know about them?

   Notable financial crises caused by stock market fluctuations include the 2008 global financial crisis and the Great Depression that began with a 1929 market crash.

TASK 2 Vocabulary

Match the words and their definitions:

portions of a company's equity that are divided among shareholders.

not complete or entire

having or showing cleverness and practical knowledge

a factor, feature, or element that is liable to vary or change.

a change, or the process of changing, especially continuously

the process by which a company first sells its shares to the public.

the financial gain obtained when revenues exceed costs and expenses.

expected to happen in the future

TASK 3 Video comprehension

Now watch a Ted-Ed video on how the stock market works and answer the following questions:

1. What was the primary business of the Dutch East India Company in the 1600s?

   The main purpose was to trade goods such as gold, porcelain, spices, and silks around the globe.

2. How did the Dutch East India Company fund its voyages, and what did it create in the process?

   The Dutch East India Company funded its voyages by getting investments from private citizens in exchange for a share of the ship’s profits. This practice led to the creation of the world’s first stock market..

3. How has the purpose and scope of the stock market evolved since its start?

   The stock market has expanded from a means of funding ship voyages to a platform that supports all kinds of businesses. Today, it involves a vast network of investors and is associated with schools, careers, and even television channels dedicated to understanding it.

4. How does a new company generally introduce itself to the market?

   A new company generally introduces itself to the market by first advertising itself to big investors and then sponsoring its initial public offering (IPO).

5. What happens when investors buy stocks in a company, and how does this process affect the company's growth?

   When investors buy stocks, they become partial owners in the business. Their investment helps the company's growth, and as the company becomes more successful, more buyers may see potential and start buying stocks, which increases the company's market value.

6. What can cause the value of a company's stock to decline?

   If a company starts to seem less profitable for any reason such as changes in leadership, bad publicity, or larger factors like new laws and trade policies, investors may decide to sell their stocks, causing the value of the stock and the company’s market value to fall.

7. How are stock prices influenced by market forces?

   Stock prices are influenced by the see-saw of supply and demand, changes in production technology, fluctuating costs of materials and labour, investor confidence, and other market forces.

8. What is the role of human confidence in the stock market?

   Human confidence in the market has the power to trigger everything from economic booms to financial crises. If investors lose confidence and start selling stocks, it can result in losing investors and actual value for a company.

9. How do most professionals advise approaching the stock market given its unpredictable nature?

   Most professionals promote reliable long-term investing over trying to make quick cash because of the stock market's unpredictable nature.

10. How has the Internet impacted the accessibility of the stock market to everyday investors?

    With the dawn of the Internet, everyday investors can buy stocks in many of the same ways a large investor would, making the stock market more accessible.

11. How can individual investors participate in the stock market, and what are their potential benefits?

    Individual investors can participate in the stock market by trading stocks and supporting businesses they believe in, which can help them achieve their financial goals.

12. What is the first step in participating in the stock market?

    The first step is making an investment, which usually involves buying stocks in a company.

TASK 4 Video summary

Complete the summary of the video using the words from the box:

The beginning of markets can be traced back to the Dutch East India Company. In the 1600s, to finance expansive voyages, the company sought investments from citizens. This concept has evolved into a system with institutions, careers, and media outlets dedicated to understanding it.

Today, launching into the market involves processes like an Initial Public Offering (IPO), attracting big investors who believe in a company's . The value of stocks fluctuates based on supply and , with the company's being the key influencer.

This evolving landscape isn't limited to the wealthy; with the advent of the internet, anyone with an understanding can . Individuals can now support businesses they believe in and work towards their financial . The key is to understand the factors causing daily in stock prices and make informed decisions concerning potential purchases. The first step is to start investing.