Vocabulary Development: Words Associated with Stock Exchange – SS1 English Lesson Note (Second Term)

A stock exchange is an organised market for buying and selling corporate and other securities. It is a place where people buy and sell shares in companies.

Behavioural objectives

By the end of the lesson, students should be able to:

• define a stock exchange;
• list words associated with the stock exchange;
• explain the meaning of shareholder, shares, intraday, bull market and dividend;
• use these words correctly in sentences.

What words are associated with the stock exchange?

These words are associated with the stock exchange: bonds, shares, shareholders, bull market, profit, dividend, company, buy, free market, bank, unit trust, stock market, brokers, trade, delivery, margin, trading account, bid, market capitalisation, intraday, market order, portfolio, liquidity, etc.

Meanings of some of these words

1. Shareholder: An individual, institution or corporation that legally owns one or more shares of stock in a company.
2. Shares: Part ownership of a company. Shares represent a claim on the company’s assets and earnings.
3. Intraday: Buying and selling a share on the same day.
4. Bull market: A situation in which the share market is rising and the public is optimistic that prices will continue to rise.
5. Dividend: The share of profit that you get from the company at the end of the year or after a number of months.

Evaluation

1. What is a stock exchange?
2. Who is a shareholder?
3. What are shares?
4. What does intraday mean?
5. Explain the terms bull market and dividend.

Assignment

Write about the people and places associated with the stock exchange.