Grades 9–12 · Lesson 2 · 60 minutes
Fundamental and sentiment analysis
Students evaluate a simulated asset using both fundamentals and sentiment.
StockSt uses fictional currency and simulated shares for education only. This is not investment advice.
Warm-up
Display the price charts of two shares that have both risen recently. Ask students to guess which rise is based on lasting strength and which is based on excitement, and what evidence they would need to be sure.
Mini-lesson
- Fundamental factors describe the underlying strength of an asset: earnings-like metrics, audience growth, engagement, brand strength, competitive position, and future cash-flow potential.
- Sentiment factors describe how people feel about it: news, social attention, hype, fear, and momentum. Explain that both matter, but they can point in different directions.
StockSt activity
- Each student selects two celebrity shares.
- Students build a comparison table that covers popularity trend, event calendar, category competition, simulated “earnings” or engagement metrics, price history, and risk factors.
- Students assign each share a simple score of Strong, Neutral, or Weak and write a short justification.
Discussion
Ask, “When might a popular celebrity share still be overpriced?” Have students use their tables to identify cases where sentiment outran fundamentals.
Exit ticket
Students identify one fundamental reason and one sentiment reason a price could rise.
Assessment
Comparative analysis table and evidence-based conclusion. This builds on the “buy what you know” approach recommended in the SEC’s youth investing resources, which encourages students to research the companies behind familiar products and follow prices over time.
Student Learn links
Assign these before or after class so students practice the same ideas.