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Math Behind the Market

Math Behind the Market. Teaching Math Through the Stock Market Game. By Mindy Robison. Mindy.robison@canyonsdistrict.org 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

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  1. Math Behind the Market Teaching Math Through the Stock Market Game

  2. By Mindy Robison • Mindy.robison@canyonsdistrict.org • Midvale Middle School

  3. Accessing Lesson Plans • www.stockmarketgame.org • Login • In the Classroom • Publications • Show All Publications Listed by Name (Next) • Math Behind the Market

  4. Table of Contents

  5. Math Strands

  6. Lesson Plan

  7. 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

  8. 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

  9. Additional Information • Don’t have to do all the lessons • Enrichments lessons • Answer Keys • Match to State Core • Feel free to adapt and change

  10. More Resources • http://my.uen.org/myuen/69301/2 • This is my UEN site that has the following worksheets available.

  11. Understanding Stock Prices

  12. What Questions? • Understanding Basic Concepts • Percentage Increase/Decrease • Differences • Price to Earnings Ratio • Which Stock would you buy?

  13. 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/

  14. Stock Purchases & Commission • http://www.uen.org/Lessonplan/preview.cgi?LPid=25375 • 7th Grade Mathematics • Includes: • Power Point • Worksheet • Answer Key

  15. 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!

  16. 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

  17. 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.

  18. Price To Earnings Ratio • http://www.uen.org/Lessonplan/preview.cgi?LPid=25290 • 7th Grade Mathematics • Includes the following: • Power Point • Worksheet • Answer Key

  19. Price To Earnings Ratio

  20. 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?

  21. Exponential Growth • http://www.uen.org/Lessonplan/preview.cgi?LPid=24626 • 10th Grade Mathematics • Includes: • Power Point • Worksheets (Growth & Decay) • Answer Keys

  22. 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

  23. 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.

  24. 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

  25. 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.

  26. 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

  27. 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

  28. 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

  29. Resources • www.stockmarketgame.org • www.financeintheclassroom.org • http://robisonlovesmath.wikispaces.com/ • My email:mindy.robison@canyonsdistrict.org

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