Economics · Grade 10

Active learning ideas

The Stock Market and Financial Institutions

This topic benefits from active learning because students need to see how money flows through markets and institutions to grasp abstract concepts like liquidity and capital allocation. When students simulate trading or analyze real IPOs, they move beyond memorization to experience the consequences of their decisions in real time.

• Ontario Curriculum Expectations
• HS.EC.5.1

• 30–50 min
• Pairs → Whole Class
• 4 activities

Activity 01

• Simulation Game
• 45 min · Small Groups

Simulation Game: Mock Stock Exchange

Divide class into buyers, sellers, and traders with fictional company stocks and varying news events. Students buy and sell over 5 rounds, tracking prices on a shared board. Conclude with a debrief on how information affects prices.

Explain the primary functions of a stock market in an economy.

Facilitation Tip

During the Mock Stock Exchange, circulate with a stopwatch to enforce trading rounds, ensuring students experience the urgency and decision-making pressure of real markets.

What to look for

Present students with two scenarios: one describing a company selling new shares to the public for the first time, and another describing investors trading existing shares. Ask students to identify which scenario represents the primary market and which represents the secondary market, and to briefly explain their reasoning.

• Apply
• Analyze
• Evaluate
• Create
• Social Awareness
• Decision-Making

Activity 02

• Jigsaw
• 50 min · Small Groups

Jigsaw: Financial Institutions

Assign groups one institution (bank, investment firm, credit union). Each researches roles in connecting savers and borrowers, then teaches peers via posters. Rotate to expert groups for sharing key functions.

Analyze how financial institutions (banks, investment firms) connect savers and borrowers.

Facilitation Tip

For the Jigsaw on Financial Institutions, assign each group a different institution type (e.g., commercial bank, investment firm) and have them create a 1-minute infomercial to present their role.

What to look for

Facilitate a class discussion using the prompt: 'Imagine you have $1,000 to invest. How would a financial institution help you decide whether to buy shares in the primary market or the secondary market, and what factors would influence your decision?'

• Understand
• Analyze
• Evaluate
• Relationship Skills
• Self-Management

Activity 03

• Case Study Analysis
• 35 min · Pairs

Case Study Analysis: TSX IPO Analysis

Provide profiles of recent TSX listings like Shopify. Pairs identify primary market features, capital raised, and secondary trading impacts. Discuss as whole class how this forms capital.

Differentiate between primary and secondary markets for securities.

Facilitation Tip

In the TSX IPO Analysis, require students to calculate the total funds raised and compare them to the company's stated use of proceeds to highlight the connection between capital formation and business growth.

What to look for

On an exit ticket, have students list two key functions of the stock market and one specific role a bank plays in connecting savers and borrowers. Ask them to also define either the primary or secondary market in their own words.

• Analyze
• Evaluate
• Create
• Decision-Making
• Self-Management

Activity 04

• Simulation Game
• 30 min · Individual

Flowchart: Capital Pathway

Individuals map how savings flow from households through banks to firms via stocks. Share and refine in pairs, adding examples from Canadian context. Present to class.

Explain the primary functions of a stock market in an economy.

Facilitation Tip

For the Flowchart: Capital Pathway, provide sticky notes so students can rearrange flows until they accurately represent how savings become loans or investments.

What to look for

Present students with two scenarios: one describing a company selling new shares to the public for the first time, and another describing investors trading existing shares. Ask students to identify which scenario represents the primary market and which represents the secondary market, and to briefly explain their reasoning.

• Apply
• Analyze
• Evaluate
• Create
• Social Awareness
• Decision-Making

A few notes on teaching this unit

Teaching this topic works best when you frame the stock market as a system where every action has a consequence, not just a place to get rich. Avoid oversimplifying by focusing on the mechanics—like how bid-ask spreads work or why companies choose IPOs—so students see the logic behind the chaos. Research suggests that role-playing the roles of issuers, investors, and intermediaries helps students internalize these connections more than lectures alone.

Successful learning looks like students confidently explaining the difference between primary and secondary markets, identifying the roles of financial institutions, and justifying investment choices using evidence from simulations or case studies. They should also articulate how these systems support economic growth.

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Watch Out for These Misconceptions

• During the Mock Stock Exchange, watch for students treating trading as random chance rather than informed decision-making based on company updates or market trends.

  Pause the simulation after each round to debrief: ask students to explain their latest trade using the company news they received. Highlight how fundamentals like earnings reports or industry trends guide choices, not luck.

• During the Jigsaw on Financial Institutions, watch for students viewing banks and investment firms as interchangeable.

  Have each group present their institution's unique tools, such as how commercial banks use deposits for loans while investment banks underwrite securities. Then, challenge students to trace a dollar from a saver's account to a borrower's project.

• During the Flowchart: Capital Pathway, watch for students skipping the role of financial institutions entirely.

  Provide a list of financial tools (e.g., savings accounts, bonds, mutual funds) and require students to label each step a dollar takes through these tools before reaching a business. Discuss how each tool changes the dollar's purpose or risk.

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Methods used in this brief

• Simulation Game
• Jigsaw
• Case Study Analysis