…and how has the list changed over the past ten years?

Hat tip to Big Picture Blog for this extremely simple yet insightful chart:

Questions for students:

• What is market capitalization? Why is it considered here as a proxy for company size?
• How many of the top 10 companies in 2006 persisted on the list for 2016?
• How has the industry representation changed over the past ten years? What do you think accounts for this?
• Agree or disagree with this statement: the bigger the company, the more stable it’s underlying business is. Use data to support your answer.
• Did any of the companies that showed up on both lists see a decline in their market cap. between these two dates?

Want this resource and questions in slide format to use in class? Click here!

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Check out the NGPF Investing Activity: Calculate Compound Interest!

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.