Class: Senior Secondary School 1 (SS1, SS 1, SSS1, SSS 1)
Term: 3rd Term
Week: 10
Age: 15 years
Duration: 45 minutes
Subject: Economics
Curriculum Theme: Economics
Previous Lesson: Instruments of Business Finance: Sources of Funds and Financing Instruments.
Topic: Instruments of Business Finance
Subject Matter: Meaning of shares; types of shares; meaning of debenture; types of debentures; other business securities.

Specific Objectives

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

Cognitive Domain:

Define shares and state how shares are used to raise business funds.
List and explain types of shares.
Define debenture and state how debentures are used to raise business funds.
List and explain types of debentures.
Identify other business securities and state their basic uses.
Differentiate between shares, debentures, and other securities with examples.

Affective Domain:

Show appreciation for proper financial planning before starting or expanding a business.
Demonstrate positive attitude towards lawful investment and responsible borrowing.

Psychomotor Domain:

Identify key details on sample share certificates and related finance documents (e.g., company name, nominal value, shareholder name).
Classify given instruments into shares, debentures, or other securities using a simple checklist.

Work in groups to discuss ways businesses can raise funds and present findings.
Participate in group discussion and respect differing opinions.

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 SSS 1 (e.g., Comprehensive Economics for Senior Secondary Schools)
Investopedia – Stocks (Shares)
Investopedia – Debentures
Encyclopaedia Britannica – Security (Finance)

Instructional Materials

The teacher will teach this lesson with the aid of:

Sample share certificates (real, photocopies, or clear images)
Sample money instruments and finance documents (e.g., dividend warrant samples, prospectus excerpts)
Charts showing types of shares, types of debentures, and other securities
Whiteboard and markers

Rationale for the Lesson

This lesson helps pupils understand how companies raise funds through financial instruments and securities. It also helps pupils differentiate shares, debentures, and other securities which are common in business and investment decisions.

Prerequisite/Previous Knowledge

Pupils have basic knowledge of business finance and can mention sources of funds such as savings and bank loans.

Lesson Content/Board Summary

Instruments of Business Finance: Shares, Debentures, and Other Securities

Meaning of Shares

A share is a unit of ownership in a company, sold to investors to raise funds for business operations and expansion.

Types of Shares

The following are types of shares:

Ordinary (Equity) shares: give ownership rights and possible dividends; dividends depend on profit.
Preference shares: have priority in dividend payment over ordinary shares; usually receive fixed dividends.
Cumulative preference shares: unpaid dividends accumulate and are paid later before ordinary shareholders.
Non-cumulative preference shares: unpaid dividends do not accumulate if not declared.
Participating preference shares: receive fixed dividend and may share extra profit after fixed dividends.
Redeemable shares: can be bought back by the company under agreed terms.

Meaning of Debenture

A debenture is a long-term loan raised by a company from the public or institutions, with interest paid to debenture holders and repayment at a future date.

Types of Debentures

The following are types of debentures:

Secured (Mortgage) debentures: backed by company assets used as security.
Unsecured (Naked) debentures: not backed by specific company assets as security.
Redeemable debentures: repayable at a stated future date.
Irredeemable (Perpetual) debentures: not repayable at a fixed date; interest is paid continuously.
Convertible debentures: can be converted into shares under stated conditions.
Non-convertible debentures: cannot be converted into shares.

Other Business Securities

Other business securities are financial instruments used by businesses or government to raise funds apart from shares and debentures.

The following are other business securities:

Bonds: debt instruments issued by government or companies to borrow money and pay interest.
Treasury bills: short-term government securities sold to raise funds and repaid at maturity.
Commercial papers: short-term unsecured promissory notes issued by large companies for working capital.
Bankers’ acceptances: bank-backed instruments used to support trade transactions.
Preference share certificates and dividend warrants: documents that show ownership type and dividend entitlement.

Differences Between Shares, Debentures, and Other Securities

The following are differences between shares, debentures, and other securities:

Ownership: shares show ownership in a company; debentures and many other securities show lending.
Return: shares earn dividends; debentures and most debt securities earn interest.
Risk: shares usually carry higher risk; debt securities are generally less risky than shares.
Repayment: shares are not repaid like loans; debentures and most debt securities are repayable at maturity.
Control: shareholders may have voting rights; debenture holders and bondholders do not control the company.

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 asks pupils to mention ways a business can raise large funds beyond personal savings, then introduces shares, debentures, and other securities as instruments of business finance.
Pupils’ Activity: Pupils mention examples such as borrowing, investors, bank loans, and selling company ownership units.
Learning Point: Businesses can raise funds through different financial instruments and securities.

Step 2: Meaning of Shares

Time: 6 minutes
Teaching Skill: Explanation
Teacher’s Activity: The teacher defines shares and explains how companies raise funds by selling shares to investors.
Pupils’ Activity: Pupils copy the definition and give one example of a company that can sell shares.
Learning Point: Shares are units of ownership sold to raise business funds.

Step 3: Types of Shares

Time: 8 minutes
Teaching Skill: Demonstration/Use of Visual Aids
Teacher’s Activity: The teacher uses charts to explain types of shares and highlights key features of ordinary and preference shares.
Pupils’ Activity: Pupils list types of shares and state one feature of each type.
Learning Point: Shares have different forms with different rights and benefits.

Step 4: Meaning of Debenture

Time: 6 minutes
Teaching Skill: Explanation
Teacher’s Activity: The teacher defines debenture and explains that debenture holders are creditors who receive interest and repayment at maturity.
Pupils’ Activity: Pupils copy the definition and state one difference between shareholders and debenture holders.
Learning Point: Debentures are long-term loans to companies with fixed interest.

Step 5: Types of Debentures

Time: 7 minutes
Teaching Skill: Explanation/Illustration
Teacher’s Activity: The teacher explains types of debentures using a board summary and simple examples (secured/unsecured, redeemable/irredeemable, convertible/non-convertible).
Pupils’ Activity: Pupils list types of debentures and classify given examples into the correct types.
Learning Point: Debentures differ by security, repayment terms, and conversion rights.

Step 6: Other Business Securities and Comparison

Time: 8 minutes
Teaching Skill: Discussion/Comparison
Teacher’s Activity: The teacher introduces other securities (bonds, treasury bills, commercial papers) and guides pupils to compare shares, debentures, and other securities using a simple table.
Pupils’ Activity: Pupils mention examples of other securities and state at least three differences among the instruments.
Learning Point: Shares represent ownership while many other securities represent borrowing.

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 shares and list four types of shares.
Define debenture and list four types of debentures.
List three other business securities apart from shares and debentures.
State three differences between shares and debentures.

Pupils’ Activity: Pupils answer orally and in writing.

Learning Point: Pupils demonstrate understanding of the lesson.

Step 8: Conclusion

Time: 0 minutes
Teaching Skill: Summarization
Teacher’s Activity: The teacher summarizes key points and gives an assignment for pupils to write short notes on any two types of shares and any two types of debentures, then list three other securities and their uses.
Pupils’ Activity: Pupils copy the assignment and ask final questions where needed.
Learning Point: Shares, debentures, and other securities are instruments used to finance business.

Lesson Keywords

Shares – Units of ownership in a company used to raise funds.
Ordinary Shares – Equity shares that carry ownership rights and variable dividends.
Preference Shares – Shares that have priority in dividend payment, often at a fixed rate.
Debenture – A long-term loan instrument issued by a company with interest payment.
Secured Debenture – Debenture backed by company assets as security.
Bond – A debt instrument issued to raise funds with interest and repayment at maturity.
Treasury Bill – A short-term government security used to raise funds.

Differentiation

Pupils who need support will use a guided chart to match types of shares and debentures to their features, while faster learners will prepare a short comparison table showing ownership, returns, risk, and repayment for shares, debentures, and bonds.

Note for teachers using this lesson plan

Use sample certificates or clear images to make the lesson practical and easy to remember. Emphasise short, exam-ready points and ensure pupils can clearly classify instruments and state differences without mixing ownership and borrowing concepts.