Ask students what they know about stocks and the stock market. Record their responses on chart paper or on the board and discuss points as they arise. Ask them who participates in the stock market, why they participate, and what their roles are. The following points might be discussed:
Companies participate in the stock market to generate funds
Investors, such as individuals, pension funds, and financial organizations, participate to earn income
Regulatory bodies, such as governments and agencies (i.e., securities commissions), participate to ensure that investors are protected.
Based on the students’ responses, fill in any information gaps, and give a brief overview of how the stock market works. For background material you can refer to the Investor Education Fund’s How Does the Stock Market Work? online module at:
http://www.investored.ca/en/library/fund/B11_stockmarket.pdf.
Direct students to the topic Stranger than Fiction: The Bre-X Gold Scandal on the CBC Radio and Television Archives Web site. They will view Clips #1, 2, 5, and 10.
Have students answer the questions on the download sheet Bre-X 5Ws.
In large groups, have students share their responses. They should revise their worksheets if they find any gaps. As a class, compare the responses on the worksheets to the answers generated earlier in the brainstorming activity. Have students discuss what new things they learned from the clips.
Relate the responses to the earlier discussion of the way the stock market works by identifying the roles and responsibilities of those who were involved in Bre-X. Ask: What kinds of reforms to the stock market might prevent another Bre-X? Based on what you know about the Bre-X scandal, what should investors know about the stock market to protect themselves?
Have students create a political cartoon to represent their impressions of the Bre-X scandal.
