Stock Market Analogy

  • 11/24/2013 6:29:00 AM
  • Daniel

Great teachers will try to describe things in a number of different ways, they look for phrases and terms that relate to the audience at hand.

I came across a good analogy that helps with conversations around what a ‘market’ is:

Ask your students if they have ever been to a farmers market?

Who is doing the selling and who is doing the buying?

Growers of the produce are selling and consumers are buying.

A farmers market is a meeting place where buyers and sellers come together to determine prices and exchange produce.

This analogy really helps students understand that the stock market is really no different, its just a place where prices are set and stocks are exchanged. Sure no physical items are actually exchanged and the ledger is electronic, but going from a farmers market to a stock market isn’t a huge leap.