Class: Senior Secondary School 1 (SS1, SS 1, SSS1, SSS 1)
Term: 2nd Term
Week: 4
Age: 15 years
Duration: 45 minutes
Subject: Economics
Curriculum Theme: Economics
Previous Lesson: Firms and Industry: Private and Public Companies.
Topic: Firms and Industry
Subject Matter: Definition of quoted and unquoted companies; distinctions between quoted and unquoted companies; securities (shares, debentures, bonds).

Specific Objectives

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

Cognitive Domain:

Define a quoted company.
Define an unquoted company.
List at least four distinctions between quoted and unquoted companies.
Define shares, debentures, and bonds.
State basic features of shares, debentures, and bonds.
Identify examples of securities from simple business records or sample certificates.

Affective Domain:

Show interest in lawful ways of raising business capital.
Appreciate the need for transparency and proper record-keeping in companies.

Psychomotor Domain:

Sort given examples into shares, debentures, and bonds using a table.
Use a chart to classify companies into quoted and unquoted with reasons.

Work cooperatively in groups to analyse simple case examples of businesses.
Participate in class discussion by giving local examples of quoted and unquoted businesses.

Reference Materials

The following resources were used in planning this lesson:

9 Years Basic Education Curriculum
State Unified Scheme of Work
Recommended Economics textbook for Senior Secondary Schools (e.g., Comprehensive Economics for SSS, Book 1)
Investor.gov: Stock (Shares)
Investopedia: Bond
Encyclopaedia Britannica: Debenture

Instructional Materials

The teacher will teach this lesson with the aid of:

Visit to a business location (where possible) or a short local case study of businesses
Sample share certificates (real or printed samples)
Sample business records (simple balance sheet extracts or capital structure examples)
Charts showing differences between quoted and unquoted companies
Board and markers/chalk

Rationale for the Lesson

This lesson helps pupils understand how companies raise funds and how some companies are traded publicly while others are not. It supports pupils to interpret common investment terms they may see in business news and local business discussions.

Prerequisite/Previous Knowledge

Pupils have basic knowledge of business organisations and can mention companies and businesses in their locality.

Lesson Content/Board Summary

Quoted and Unquoted Companies and Securities

Definition of quoted company

A quoted company is a company whose shares are listed on a stock exchange and can be bought and sold by the general public through the market.

Definition of unquoted company

An unquoted company is a company whose shares are not listed on a stock exchange and are not freely traded on the stock market.

Distinctions between quoted and unquoted companies

The following are distinctions between quoted and unquoted companies:

Listing: quoted companies are listed on a stock exchange; unquoted companies are not listed.
Share trading: quoted company shares are traded openly; unquoted company shares are not freely traded publicly.
Disclosure: quoted companies have higher disclosure and reporting requirements; unquoted companies have fewer public reporting requirements.
Access to capital: quoted companies can raise large funds through public share issues; unquoted companies rely more on private funding and limited investors.
Ownership: quoted companies usually have many shareholders; unquoted companies often have fewer shareholders.
Share valuation: quoted shares have market prices from trading; unquoted shares have no regular market price and valuation is less open.

Meaning of securities

Securities are financial instruments used to raise money or invest money, such as shares, debentures, and bonds.

A share is a unit of ownership in a company that gives the holder the right to a portion of the company’s profits and assets.

The following are basic features of shares:

Represents ownership in a company.
Shareholders may receive dividends when profits are declared.
Shareholders may have voting rights in company decisions (depending on share type).
Share value may rise or fall based on company performance and market conditions.

Debentures

A debenture is a long-term loan instrument issued by a company to borrow money, with an agreement to pay interest and repay the principal at a stated time.

The following are basic features of debentures:

Represents a loan to the company, not ownership.
Debenture holders receive fixed interest.
Debenture holders are creditors of the company.
Repayment is usually at maturity according to agreed terms.

Bonds

A bond is a debt instrument issued by a government or organisation to borrow money from investors, with interest payment and repayment at maturity.

The following are basic features of bonds:

Represents borrowing by the issuer (government or organisation).
Bond holders receive interest, usually at a fixed rate.
Principal is repaid at maturity.
Often used for financing projects and public spending (for government bonds).

Teaching Methods/Instructional Techniques

Discussion, Lecture, Demonstration, Question and Answer, Visual Aids

Instructional Procedures

Step 1: Introduction

Time: 5 minutes
Teaching Skill: Set Induction
Teacher’s Activity: The teacher presents a short scenario of a company needing funds and asks pupils to mention ways businesses raise money. The teacher links responses to shares and borrowing instruments.
Pupils’ Activity: Pupils respond by listing common funding methods they know (savings, loans, selling ownership).
Learning Point: Businesses raise funds through ownership instruments and borrowing instruments.

Step 2: Quoted and unquoted companies

Time: 10 minutes
Teaching Skill: Explanation and Illustration
Teacher’s Activity: The teacher explains and writes the definitions of quoted and unquoted companies, using local examples and a simple chart to show listing and trading differences.
Pupils’ Activity: Pupils copy definitions and suggest local examples of companies they think may be quoted or unquoted.
Learning Point: Quoted companies are listed and publicly traded, while unquoted companies are not listed and not publicly traded.

Step 3: Distinctions between quoted and unquoted companies

Time: 8 minutes
Teaching Skill: Comparison and Board Work
Teacher’s Activity: The teacher draws a two-column comparison table and guides pupils to state distinctions, correcting and recording valid points.
Pupils’ Activity: Pupils complete the comparison table in their notebooks and read out key differences.
Learning Point: Quoted and unquoted companies differ in listing, disclosure, ownership size, and access to capital.

Step 4: Meaning of securities

Time: 5 minutes
Teaching Skill: Explanation
Teacher’s Activity: The teacher defines securities and introduces shares, debentures, and bonds as common securities used in raising funds.
Pupils’ Activity: Pupils state examples of securities they have heard about in business news or from adults.
Learning Point: Securities are financial instruments used for investment and raising money.

Step 5: Shares

Time: 5 minutes
Teaching Skill: Demonstration
Teacher’s Activity: The teacher displays a sample share certificate (real or printed) and explains the meaning and features of shares in short points.
Pupils’ Activity: Pupils identify the security as a share and list two features from the board.
Learning Point: Shares represent ownership and may earn dividends.

Step 6: Debentures and bonds

Time: 7 minutes
Teaching Skill: Explanation and Classification
Teacher’s Activity: The teacher explains debentures and bonds, and guides pupils to classify each as a debt instrument, highlighting interest and repayment at maturity.
Pupils’ Activity: Pupils classify sample descriptions into debentures or bonds and state one feature of each.
Learning Point: Debentures and bonds are debt instruments that pay interest and are repaid at maturity.

Step 7: Evaluation/Review

Time: 5 minutes

Teaching Skill: Questioning/Assessment

Teacher’s Activity: The teacher evaluates the learning by asking the following questions:

Define a quoted company.
Define an unquoted company.
List four distinctions between quoted and unquoted companies.
Define shares, debentures, and bonds.

Pupils’ Activity: Pupils answer orally and in writing.

Learning Point: Pupils demonstrate understanding of the lesson.

Step 8: Conclusion

Time: 0 minutes
Teaching Skill: Summary
Teacher’s Activity: The teacher summarises the key definitions and differences and gives a short assignment: write five differences between quoted and unquoted companies and state one example of each; define shares, debentures, and bonds with one feature each.
Pupils’ Activity: Pupils copy the summary and assignment.
Learning Point: Quoted and unquoted companies and basic securities can be defined and distinguished using key features.

Lesson Keywords

Quoted company – a company listed on a stock exchange whose shares are publicly traded.
Unquoted company – a company not listed on a stock exchange and whose shares are not publicly traded.
Stock exchange – an organised market where shares and other securities are bought and sold.
Securities – financial instruments used for investment and raising funds (e.g., shares, debentures, bonds).
Share – a unit of ownership in a company.
Debenture – a company loan instrument that pays interest and is repaid later.
Bond – a debt instrument issued by government or organisations to borrow money with interest.
Dividend – part of profit paid to shareholders.
Maturity – the date when a debt instrument is due for repayment.

Differentiation

Provide a simplified comparison table and guided definitions for pupils who need support, while advanced pupils analyse a short case of a business raising funds and identify whether it involves shares, debentures, or bonds with reasons.

Note for teachers using this lesson plan

Use clear local examples to avoid confusion between quoted and unquoted companies, and keep board points short for examination purposes. Where real certificates are not available, use printed samples and simple record extracts to reinforce identification and classification of securities.