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

4. Table of Contents Before You Invest Selecting Your Investments
Tracking Your Investments
At the End of Trading

5. Math Strands Thinking Algebraically Interpreting Statistics
Communicating Quantitatively
Tackling Complex Problems

6. Lesson Plan Lesson Summary Lesson Objective NCTM Standards
Mathematical Strands

7. Sample Lesson Plans Before You Invest What is a Company
Page 2: Thinking Algebraically
Percentages
Patterns
Page 3: Interpreting Statistics
Ordering
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
Target (TGT)
Walmart (WMT)
Last Trade
46.02
49.08
Trade Time
10/2/09
Change
.55 (1.18%)
.08 (.16%)
Previous Close
46.57
49.00
Open
46.03
48.89
Day’s Range
52 wk Range
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%)

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.

14. Stock Purchases & Commission
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: · 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 · = $6,205.00
Commission: 
.02 · 6, = $124.10
Total Price:
6, = $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
7th Grade Mathematics
Includes the following:
Power Point
Worksheet
Answer Key

19. 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
÷ 5.72
= 20.15
145.67÷ 5.72
=25.47
÷ 5.72
=33.31

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
10th Grade Mathematics
Includes:
Power Point
Worksheets (Growth & Decay)
Answer Keys

22. Exponential Growth 2% Assume you have $5,000 to invest.
Interest Rate
2 yrs compounded annually
2 yrs compounded continuously
20 yrs
compounded monthly
compounded daily 2%
Formula: P(1+ r)t $
Formula: Pert $
Formula: P(1+r/n)nt $ $
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 10% Formula: y = a (1 – r)t
Assume the car was purchased for $20,000
Depreciation
Rate
Value after 2 years
Value after 5 years
Value after 8 years
Value after 10 years
10%
$16,200
$11,809.80 $ $
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

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 My