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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)

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math behind the market

Math Behind the Market

Teaching Math Through the Stock Market Game

accessing lesson plans
Accessing Lesson Plans
  • www.stockmarketgame.org
  • Login
    • In the Classroom
      • Publications
        • Show All Publications Listed by Name (Next)
          • Math Behind the Market
sample lesson plans
Sample Lesson Plans
  • Before You Invest
    • What is a Company
      • Page 2: Thinking Algebraically
        • Percentages
        • Patterns
      • Page 3: Interpreting Statistics
        • Ordering
        • Patterns
      • Page 10: Tackling Complex Problems
        • Ratios
        • Division
sample lesson plans1
Sample Lesson Plans
  • Before You Invest
    • What is a Stock
      • Page 12: Thinking Algebraically
        • Integers
        • Addition/Subtraction/Multiplication
      • Page 15: Communicating Quantitative Information
        • Understanding Tables
        • Graphing
additional information
Additional Information
  • Don’t have to do all the lessons
  • Enrichments lessons
  • Answer Keys
  • Match to State Core
  • Feel free to adapt and change
more resources
More Resources
  • http://my.uen.org/myuen/69301/2
  • This is my UEN site that has the following worksheets available.
what questions
What Questions?
  • Understanding Basic Concepts
  • Percentage Increase/Decrease
  • Differences
  • Price to Earnings Ratio
  • Which Stock would you buy?
another resource
Another Resource
  • Go 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 commission
Stock Purchases & Commission
  • http://www.uen.org/Lessonplan/preview.cgi?LPid=25375
  • 7th Grade Mathematics
  • Includes:
    • Power Point
    • Worksheet
    • Answer Key
determining stock cost
Determining Stock Cost
  • Lets 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
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

extensions
Extensions
  • What 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 ratio
Price To Earnings Ratio
  • http://www.uen.org/Lessonplan/preview.cgi?LPid=25290
  • 7th Grade Mathematics
  • Includes the following:
    • Power Point
    • Worksheet
    • Answer Key
what else
What Else?
  • 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?
exponential growth
Exponential Growth
  • http://www.uen.org/Lessonplan/preview.cgi?LPid=24626
  • 10th Grade Mathematics
  • Includes:
    • Power Point
    • Worksheets (Growth & Decay)
    • Answer Keys
exponential growth1
Exponential Growth

Assume you have $5,000 to invest.

Formula: A = P (1 + r/n)nt

P = Principal

r = Annual Rate

n = # of times compounded per year

t = Number of years

what else1
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
Exponential Decay

Assume the car was purchased for $20,000

Formula: y = a (1 – r)t

a = initial amount

r = percent decrease

t = Number of years

what else2
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 study
The Stock Market Game Study
  • http://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 study1
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 study2
The Stock Market Game Study
  • Teachers
    • Financial practices were influenced
    • Set financial goals
    • Analyzed their risk tolerance
    • Read the business section of

the newspaper

    • Watched financial programs
resources
Resources
  • www.stockmarketgame.org
  • www.financeintheclassroom.org
  • http://robisonlovesmath.wikispaces.com/
  • My email:[email protected]
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