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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


By mindy robison
By Mindy Robison

  • [email protected]

  • Midvale Middle School


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


Table of contents
Table of Contents




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

  • http:[email protected]/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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