Lesson 2: Birth and death of a star 1 Business Lesson 2 Birth and death of a star Aim: to understand what shares are, where they come from, and why they exist What are shares? Where do they come from?

Lesson 2: Birth and death of a star 2 For starters… How well do you think your shares did last week? Do you think your investment paid off? Extension: think back to the week’s news. If you could go back in time who would you have invested in? Why?

Lesson 2: Birth and death of a star 3 By the end of today, you will be able to explain what shares are and why they exist. explain share listing and de-listing. come up with a trading strategy which takes share (de-)listings into account.

Lesson 2: Birth and death of a star 4 Remember your mission >Check how well you’ve done this by checking your Portfolio and Mini-League on Celebdaq. To make as much money as possible by investing imaginary money in celebrity shares.

Lesson 2: Birth and death of a star 5 So what’s a share? Last week we bought some ‘celebrity shares’. Before we continue trading in shares we want to know what shares are!

Lesson 2: Birth and death of a star 6 From pizza shares to business shares Imagine you buy a pizza with 3 other friends. You each pay a fourth of the pizza and so you each get one of four slices.

Lesson 2: Birth and death of a star 7 From pizza shares to business shares Many companies are owned in the same way. They are split up into thousands of ‘slices’. These are called shares. Each share entitles you to a part of the company’s profits. This is called the dividend. ?Why do you think companies would sell shares? What do they gain?

Lesson 2: Birth and death of a star 8 From business shares to celebrity shares Celebrities cannot be owned and they don’t make profits… so these imaginary shares pay dividends that are based on press coverage. Why have shares in celebrities? For the fun of it and to help us learn about company shares. Business shares and celebrity shares behave in similar ways!

Lesson 2: Birth and death of a star 9 Where do shares come from? In the business world, they are offered to potential buyers in an event called an initial public offering (IPO). In Celebdaq, the same happens… but you have a say in who gets listed (put on) and de-listed (taken off). >On the Celebdaq homepage go to the Traders’ Choice Vote: + list. Discuss who you would like to see listed next week and vote for them! Go to – de-list. Vote for the celebrity you would like to see booted out! !Keep track of the Traders’ Choice. If you own a de-listed share you will lose your investment.

Lesson 2: Birth and death of a star 10 Extension activity >Complete the worksheet on listing and de-listing. This will help you understand shares better.

Lesson 2: Birth and death of a star 11 Invest! >Use your homework research to invest in 3 celebrities you think will make you the most money in the coming week. You can choose whether to keep last week’s investments.

Lesson 2: Birth and death of a star 12 Homework Keep a close eye on the celebrities you chose to list/de-list, and on the broader celebrity market.