math behind the market
DESCRIPTION
Math Behind the Market. Teaching Math Through the Stock Market Game. By Mindy Robison. [email protected] Midvale Middle School. Accessing Lesson Plans. www.stockmarketgame.org Login In the Classroom Publications Show All Publications Listed by Name (Next) - PowerPoint PPT PresentationTRANSCRIPT
Math Behind the Market
Teaching Math Through the Stock Market Game
By Mindy RobisonMindy.robison@canyonsdistrict.
org
Midvale Middle School
Accessing Lesson Planswww.stockmarketgame.orgLogin
In the ClassroomPublications
Show All Publications Listed by Name (Next) Math Behind the Market
Table of Contents
Before You Invest
Selecting Your Investments
Tracking Your Investments
At the End of Trading
Math Strands
Thinking Algebraically
Interpreting Statistics
Communicating Quantitatively
Tackling Complex Problems
Lesson Plan
Lesson Summary
Lesson Objective
NCTM Standards
Mathematical Strands
Sample Lesson PlansBefore You Invest
What is a CompanyPage 2: Thinking Algebraically
PercentagesPatterns
Page 3: Interpreting StatisticsOrderingPatterns
Page 10: Tackling Complex ProblemsRatiosDivision
Sample Lesson PlansBefore You Invest
What is a StockPage 12: Thinking Algebraically
IntegersAddition/Subtraction/Multiplication
Page 15: Communicating Quantitative InformationUnderstanding TablesGraphing
Additional Information
Don’t have to do all the lessonsEnrichments lessonsAnswer KeysMatch to State CoreFeel free to adapt and change
More Resourceshttp://my.uen.org/myuen/69301/2
This is my UEN site that has the following worksheets available.
Understanding Stock Prices
Target (TGT) Walmart (WMT)
Last Trade 46.02 49.08
Trade Time 10/2/09 10/2/09
Change .55 (1.18%) .08 (.16%)
Previous Close 46.57 49.00
Open 46.03 48.89
Day’s Range 45.73-46.54 48.84-49.34
52 wk Range 25.00-49.20 46.25-60.22
Volume 6,094,625 15,094,001
Avg Vol (3m) 8,358,320 17,048,100
Market Cap: 34.60 B 189.29B
P/E 16.60 14.39
EPS 2.77 3.41
Div & Yield .68 (1.5%) 1.09 (2.2%)
What Questions?Understanding Basic ConceptsPercentage Increase/DecreaseDifferencesPrice to Earnings RatioWhich Stock would you buy?
Another ResourceGo to Financeintheclassroom.org
Grouped into math lesson plans and activities by grade.
Lessons are simple, easy to teach, and meet the state core.
http://financeintheclassroom.org/
Stock Purchases & Commissionhttp://www.uen.org/Lessonplan/preview.cgi?LPid=25375
7th Grade MathematicsIncludes:
Power PointWorksheetAnswer Key
Determining Stock CostLets assume you have decided to buy
Hershey (HSY). The price is $39.91. You decide you want to purchase 100
shares of the company.To find out how much the stock will
cost you simply multiply the price ($39.91) by the number of shares (100) and you get: 39.91 · 100 = $3,991.00, but don’t forget about the commission!
Examples:You want to buy 500 shares of Ford, at the current trading
price of $12.41 per share.
Cost of the Stocks:
500 · 12.41 = $6,205.00
Commission:
.02 · 6,205.00 = $124.10
Total Price:
6,205.00 + 124.10 = $6,329.10
ExtensionsWhat would happen to the total cost of
the transaction if the 2% commission: Went up?
The total cost would be more.Went down?
The total cost would be less.When investing your own money do you
want high or low commissions?LOW – the transaction will cost less money.
Price To Earnings Ratiohttp://www.uen.org/Lessonplan/preview.cgi?LPid=25290
7th Grade MathematicsIncludes the following:
Power PointWorksheetAnswer Key
Price To Earnings Ratio
COMPANYSYMBOL
EARNINGS PER SHARE
PRICE #1
PRICE #2
PRICE #3
PRICE #4
Apple: AAPL
$5.72 $78.20 $115.23 $145.67 $190.55
78.20 ÷ 5.72= 13.67
115.23 ÷ 5.72= 20.15
145.67÷ 5.72=25.47
190.55 ÷ 5.72=33.31
What happens to the Price to Earnings Ratios if:The Stock Price Goes Higher? The Stock Price Goes Lower?The Earnings Go Higher?The Earnings Go Lower?
What Else?
Exponential Growthhttp://www.uen.org/Lessonplan/preview.cgi?LPid=24626
10th Grade MathematicsIncludes:
Power PointWorksheets (Growth & Decay)Answer Keys
Exponential Growth
Interest Rate 2 yrs compounded annually
2 yrs compounded continuously
20 yrscompounded monthly
20 yrscompounded daily
2%Formula: P(1+ r)t
$5202.00
Formula: Pert
$5204.05
Formula: P(1+r/n)nt
$7456.64
Formula: P(1+r/n)nt
$7459.04
Formula: A = P (1 + r/n)nt
P = Principalr = Annual Raten = # of times compounded per yeart = Number of years
Assume you have $5,000 to invest.
What Else?Talk about what happens when the interest rate changes.
Discuss the differences between the ways the interest is figured.
Help students realize how important time is to the equation.
Exponential Decay
DepreciationRate
Value after 2 years
Value after 5 years
Value after 8 years
Value after 10 years
10% $16,200 $11,809.80 $8609.34 $6973.57
Assume the car was purchased for $20,000
Formula: y = a (1 – r)t
a = initial amountr = percent decreaset = Number of years
What Else?Talk about what happens when the depreciation rate changes.
Talk about the values you will get 20 or 30 years out – does it make sense?
Discuss the pros and cons of buying new or used cars.
The Stock Market Game Studyhttp://www.finrafoundation.org/
web/groups/foundation/@foundation/documents/foundation/p119852.pdf
http://www.finrafoundation.org/web/groups/foundation/@
foundation/documents/foundation/p119855.pdf
The Stock Market Game Study
Students who played the game:Scored Significantly Higher on Mathematics Test
Scored Significantly Higher on Financial Literacy Tests
Score higher regardless of teacher implementation
The Stock Market Game Study
TeachersFinancial practices were influenced
Set financial goalsAnalyzed their risk toleranceRead the business section of the newspaperWatched financial programs
Resourceswww.stockmarketgame.orgwww.financeintheclassroom.orghttp://robisonlovesmath.wikispace
s.com/
My email: [email protected]