Stock Prices

Objectives Define stock and diversification Define mixed number and decimal Give examples of whole numbers, mixed

numbers, and decimals Identify and give examples of equivalent

mixed numbers and whole numbers with decimals

Calculate stock purchases based on the price of 1 share of stock

Standard(s) 4.3 Evaluate methods of investing

A. Stocks and bonds

The purpose of this lesson is to learn how to read information on the stock pages.

You will review 2 concepts that you need to understand in order to work with stock prices Whole numbers and fractions

What is a whole number? 0, 1, 2, 5, 10, 50, 100

What is a fraction? ½, ¼, ¾

Mixed Numbers Made up of a whole number and a fraction

2 ½ It takes 2 whole cups and ½ cup of flour to

make a batch of chocolate chip cookies In this number, which is the whole number? Which is the fraction?

What are some other examples of mixed numbers? 6 ¾, 20 ¼, etc…

Mixed numbers Mixed numbers can also be expressed

using whole numbers and decimals Decimals represent fractions, using

numbers to the right of a decimal point to show tenths, hundredths, and thousandths, and so on

How do you write 2 ½ as a decimal? 2.5

Math Match Up! Each of you will receive a card, do not

look until told to. You will have either a mixed number or

a whole number with a decimal that will equal one of the mixed numbers.

If you receive a card with a mixed number, you must search your classmates to see who has the matching equivalent, but as a decimal number

Math Match Up! When you think you have found your

match, you should find me to see if you have the correct match.

If you do, I will give you and your partner an “equal” card, once you receive this, go find a spot to sit with your partner.

If you do not have a correct match, you must continue to find another match

Math Match Up When you and your partner are seated

please write two sentences to describe your match. 4 ½ & 4.5 “It takes 4 and ½ cups of water

to make a pitcher of sweet tea. This is the same as 4 and five-tenths cups of water.”

Visual 1 – Which One’s Match?

35 ¼ 35.50

35 ½ 35.75

35 ¾ 35.25

Mix and Match I will now distribute cards, DON’T look at

them until I tell you to do so Remember, once you find your “match”

and you have an “equal” card, you and your partner must write 2 sentences about your cards!

Stocks Before this class, had you ever heard of

stocks? Stocks represent ownership (equity) in a

corporation People who buy stock become part-

owners of corporations (we will talk in more detail about this

next week!)

Stock Why would people want to buy stock in a

company? For example: Suppose Ms. Smith is not at all

interested in bicycles. Why would she want to be part-owner of a company that makes bicycles? When corporations do well, shares of ownership may

increase In value. People who own those shares then see an increase in their wealth. This is why people often buy stocks as a personal investment.

Stock People who buy and sell stock MUST

understand mixed numbers and whole numbers with decimals.

This is because stock prices are listed in newspapers as whole numbers with decimals (money values).

Stock Exchanges Have you ever heard of the New York Stock

Exchange (NYSE)? What about the American Stock Exchange

(AMEX)? How about the NASDAQ Stock Market? What are these?!

Places or means by which people may buy and sell stocks. These exchanges enable people to buy stock in more than 9,000 companies!

Stock Prices Like other things that are bought and sold,

stocks have prices. Stock price – the amount that the buyer pays

and the seller receives when a stock is sold. CONSTANTLY changing as buyers and sellers

decide on a price that is agreeable to them. When they agree on a price and complete a

transaction, both the buyer and the seller benefit, or the exchange would not happen.

Stock Prices Can be found:

In newspapers On the internet On the news

52 Weeks Stock Sym Hi Lo Close

Hi Lo

68.5 47.50 Abercrombie ANF 66.50 65.50 65.25

80.25 48.75 DaveBusters DAB 77.25 74.25 74.25

64.25 44.50 SonyCp SNE 60.50 59.50 59.50

26.75 22.25 GenMills GIS 26.50 26.50 26.50

66.25 37.50 McDnlds MCD 63.25 61.50 61.50

59.75 47.75 PepsiCo PEP 43.50 42.00 42.50

Activity 2 Complete the Worksheet labeled

Activity 2. If you have any questions, please do NOT hesitate to ask!

Visuals 3 and 4 Visual 3 shows prices for a SINGLE share

of stock for each of the listed companies. Notice that this portfolio is very DIVERSIFIED! Clothing, video games & entertainment,

electronics, wholesale foods, fast-food, soft drinks, entertainment, automotive, pharmaceutical, and apparel

On visual 4, you will calculate how much it will cost to purchase 10, 50, and 100 shares of each company’s stock. Multiply the single price by 10, 50, or 100.

Activity 3 For this activity, you will be working with

your Math Match Up partners! Using one of YOUR stocks that YOU have

been following, please complete this activity. You and your partner will need to decide which one to use.

Enrichment Since you have completed Activity 3 You and your partner will look at the 20

total companies you have decided to “invest” in for the next 10 days.

You have $10,000 to invest. You may purchase any of the 20 stocks

you have been following You must purchase in increments of 10,

50, or 100 shares. You should come as close to spending the full $10,000 without going over.