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# Math Behind the Market - PowerPoint PPT Presentation

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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## PowerPoint Slideshow about ' Math Behind the Market' - meena

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### Math Behind the Market

Teaching Math Through the Stock Market Game

• [email protected]

• Midvale Middle School

• www.stockmarketgame.org

• In the Classroom

• Publications

• Show All Publications Listed by Name (Next)

• Math Behind the Market

• 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

• Before You Invest

• What is a Stock

• Page 12: Thinking Algebraically

• Integers

• Page 15: Communicating Quantitative Information

• Understanding Tables

• Graphing

• Don’t have to do all the lessons

• Enrichments lessons

• Match to State Core

• Feel free to adapt and change

• http://my.uen.org/myuen/69301/2

• This is my UEN site that has the following worksheets available.

• Understanding Basic Concepts

• Percentage Increase/Decrease

• Differences

• Price to Earnings Ratio

• Which Stock would you buy?

• 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/

• http://www.uen.org/Lessonplan/preview.cgi?LPid=25375

• Includes:

• Power Point

• Worksheet

• 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!

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

• 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.

• http://www.uen.org/Lessonplan/preview.cgi?LPid=25290

• Includes the following:

• Power Point

• Worksheet

• 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?

• http://www.uen.org/Lessonplan/preview.cgi?LPid=24626

• Includes:

• Power Point

• Worksheets (Growth & Decay)

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

• 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.

Assume the car was purchased for \$20,000

Formula: y = a (1 – r)t

a = initial amount

r = percent decrease

t = Number of years

• 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.

• http:[email protected]/documents/foundation/p119852.pdf

• http:[email protected]/documents/foundation/p119855.pdf

• Students who played the game:

• Scored Significantly Higher on Mathematics Test

• Scored Significantly Higher on Financial Literacy Tests

• Score higher regardless of teacher implementation

• Teachers

• Financial practices were influenced

• Set financial goals

• Analyzed their risk tolerance