1. Lesson 3: Demanding celebs1 Business Lesson 3 Demanding celebs Aim: to understand what affects share prices How do you make a return from changes in share prices

2. Lesson 3: Demanding celebs2 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?‘Daq Diary >Extension: how do you expect the share price of these celebrities will be affected?

3. Lesson 3: Demanding celebs3 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.

4. Lesson 3: Demanding celebs4 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.

5. Lesson 3: Demanding celebs5 Which would you pay more for? An ice cream on –a cold winter day or –a hot summer day? A Christmas tree on –December 1 st or –January 1 st ? A bottle of water in –London or –the middle of the desert?

6. Lesson 3: Demanding celebs6 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).

7. Lesson 3: Demanding celebs7 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.

8. Lesson 3: Demanding celebs8 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

9. Lesson 3: Demanding celebs9 If a celebrity’s press coverage increases… ? Is the dividend the only thing which affects demand?

10. Lesson 3: Demanding celebs10 Extension activity/homework >Complete the worksheet on demand. This will help you make dividends and capital gains!

11. Lesson 3: Demanding celebs11 Invest! >Choose the 3 celebrities that you expect will bring in the biggest capital gains and dividends during the week.

12. Lesson 3: Demanding celebs12 Celebwork Track one of your investments. Cut out/print any news stories about them during the week and bring these in next lesson.