Online LEI Lesson 1
Lesson 1 Stock Prices
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1 Stock Prices
LESSON 1 STOCK PRICES
Lesson Description
Newspaper and Internet listings of stock prices provide
important information for investors. Gathering and understanding information found in the stock listings is an important life skill, and also a useful skill for students participating
in stock market simulations. This lesson introduces information typically found in stock listings, focusing on the basic
elements.
In stock listings, prices are listed as whole numbers with
decimals. Understanding these numbers and equating them
with mixed numbers are important mathematics skills for
students. The lesson begins, therefore, with a review of these
concepts. The students then participate in a math match-up
to review equivalent mixed numbers and whole numbers
with fractions. Next, they are introduced to some basic
information of the sort found in stock listings. Finally,
the students compute the cost of buying stock in various
quantities at different prices.
Concepts
•
•
•
•
•
•
• Copies of Activity 1, cut apart to provide a number card
for each student and an “equal sign” card for each pair of
students in the class
• One copy of Activity 2 for each student
• One copy of Activity 3 for each pair of students
Standards
Economics
7. Markets exist when buyers and sellers interact.
This interaction determines market prices and thereby
allocates scarce goods and services.
Personal Finance
Saving and Investing 4.
Describe how to buy and sell investments.
Mathematics
Number and Operations for Grades 3-5 and Grades 6-8
Understand numbers, ways of representing numbers,
relationships among numbers, and number systems.
Procedure
1. Tell the class that the purpose of this lesson is to learn
how to read information on the stock pages. The students
will review two concepts that they need to understand in
order to work with stock prices: whole numbers and fractions.
Provide definitions and examples as necessary. Ask the
following questions.
Decimal
Diversification
Fraction
Mixed number
Stock
Whole number
A. What is a whole number?
Any of the set of numbers beginning with zero and continuing with each number being one more than the number
before it.
Objectives
The students will:
1. Define stock and diversification.
2. Define mixed number and decimal.
3. Give examples of whole numbers, mixed numbers and
decimals.
4. Identify and give examples of equivalent mixed numbers
and whole numbers with decimals.
5. Multiply with decimals.
Time Required
60 minutes
Materials
B. Give examples of whole numbers.
0, 1, 2, 5, 10, 100
C. What is a fraction?
A part of a whole or a part of a whole number.
D. Give examples of fractions.
1
/2, 1/4, 3/4
2. Explain that mixed numbers are made up of a whole number and a fraction. Write “21/2” on the board, and explain
that it takes 2 whole cups and 1/2 cup of flour to make a
batch of chocolate chip cookies. Ask the students to identify
the whole number and the fraction in this example of a
mixed number.
2 is the whole number and 1/2 is the fraction.
• Transparencies of Visuals 1, 2, 3 and 4
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3. Ask the students to provide more examples of mixed
numbers. 6 3/4, 20 1/4 and so on
4. Explain that mixed numbers can also be expressed using
whole numbers and decimals. Decimals represent fractions,
using numbers to the right of a decimal point to show
tenths, hundredths, thousandths and so on. Ask the students
how to write 21/2 as a whole number and a decimal. 2.5
5. Tell the students that they will participate in a “math
match-up.” Explain the following.
• Each student will receive a card.
• There will be a mixed number or a whole number with a
decimal written on each card.
• A student who receives a card on which there is a mixed
number must find a student who has a whole number and
decimal that equals the mixed number.
• A student who receives a card on which there is a whole
number and a decimal must find a student with a card
that has a mixed number that is equal to the whole number and decimal.
• When two students think they have a match, they should
come to the teacher’s desk. If they have a correct match,
they will receive an “equal sign” card, and they may sit
down with their partners.
• If they don’t have a correct match, they must continue to
look until they find someone who has a correct match.
• When the partners are seated, they should write a sentence
or two to describe their match. Write the following example on the board: 21/2 = 2.5. Then write “It takes 2 and 1/2
cups of flour to make a batch of cookies. This is the same
as 2 and five-tenths cups of flour.”
6. For practice, display a transparency of Visual 1, and ask
the students to match the mixed numbers with the whole
numbers and decimals that represent the same amount.
7. Distribute a card (cut out of Activity 1) to each student,
and allow time for the students to find their matches and
obtain “equal sign” cards.
8. When the students have found matches, each pair should
write a sentence or two similar to the ones on the board,
using the two numbers from his or her match. Allow time
for the students to share their matches and their sentences
with the class.
9. Then shift the focus of the lesson to stocks and stock
prices. Ask the students if they have heard of stocks.
Answers will vary. Explain that stocks represent shares of
ownership (equity) in a corporation. People who buy stock
become part-owners of corporations.
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10. Ask the students why people want to buy stock.
Answers will vary. Suppose Ms. Smith is not at all interested
in bicycles, for example. Why would she want to be partowner of a company that makes bicycles?
When corporations do well, shares of ownership may increase
in value. People who own those shares then see an increase in
their wealth. That is why people often buy stocks as a personal
investment.
11. Explain that people who buy and sell stocks must understand mixed numbers and whole numbers with decimals.
That is because stock prices are listed in the newspapers as
whole numbers with decimals.
12. Discuss the following.
A. Have you ever heard of the New York Stock Exchange
(NYSE), the American Stock Exchange (AMEX) or the
NASDAQ Stock Market? Answers will vary.
B. What are these exchanges?
Places or means by which people may buy and sell stocks.
These exchanges enable people to buy stock in more than
9,000 companies.
13. Like other things that are bought and sold, stocks have
prices. A stock price is the amount the buyer pays and the
seller receives when a stock is sold. Stock prices are constantly changing as buyers and sellers decide on a price that is
agreeable to both of them. When they agree on a price and
complete a transaction, both the buyer and the seller benefit,
or the exchange would not take place.
14. Tell the students that stock prices are listed in newspapers;
they also are posted on certain television broadcasts and on
the Internet.
15. Project a transparency of Visual 2 and discuss the
following.
A. This table illustrates the sort of information that can be
found in the stock-listings pages of most newspapers.
B. The first two columns, labeled “52 Weeks Hi Lo,” list
the highest and lowest prices of the respective stocks
during the last 52 weeks. For example, the highest price
paid for a share of Sony Corporation stock during the
last 52 weeks was $64.25.
C. How would you write this price as a mixed number?
64 1/4
D. The next column is labeled “Stock.” This column contains an abbreviated name for the listed companies. For
example, “McDnlds” is the abbreviation for McDonald’s.
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1 Stock Prices
E. The next column is labeled “Sym.” “Sym” stands for
symbol. Each stock traded in the stock markets has a
symbol. The symbol for McDonald’s is MCD.
F. The next two columns are labeled “Hi” and “Lo.” These
two columns show the highest and lowest prices paid for
a share of this stock on this particular trading day.
G. The final column is labeled “Close.” This column lists
the price of a share of stock in its last trade at the close
of the market on this particular day.
16. Distribute a copy of Activity 2 to each student and allow
time for the students to answer the questions. Check their
answers.
1.A. 68.5; 1.B 68 1/2; 1.C. 47.75; 1.D. 47 3/4;
2. Abercrombie=Abercrombie and Fitch, DaveBusters=Dave
and Buster’s, SonyCp=Sony Corporation, GenMills=General
Mills, McDnlds=McDonald’s, PepsiCo=PepsiCo;
3.A. MCD; 3.B. ANF; 4. $26.50; 5.A. $42.50; 5.B. $59.50
17. Move on to Activity 3. Tell the students that for Activity
3 they will work with the partner they found during the
“Math Match-Up” activity. Distribute a copy of Activity 3 to
each pair of students.
18. Display a transparency of Visual 3 and assign each pair
of students one of the stocks listed on the transparency.
Allow time for the students to work. Tell each pair of students to complete the questions on Activity 3 based on the
stock they were assigned.
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E. McDonald’s is part of the fast-food restaurant industry.
F. PepsiCo and Coca-Cola Company are part of the softdrink industry.
G. Disney is part of the entertainment industry, providing
theme parks, movies and other entertainment.
H. General Motors is part of the automotive industry.
I. Pfizer is part of the pharmaceutical (medications/drugs)
industry.
J. Nike is part of the athletic apparel industry.
22. Tell the students that each pair has $10,000 to invest.
They may purchase any of the stocks listed on Visual 4.
They must purchase in increments of 10, 50 or 100 shares.
They should come as close to spending $10,000 as they can
without spending more. And they should try to diversify
their portfolio.
23. Allow time for the pairs of students to work. When the
students have finished their work, call on them to them
summarize their portfolios and explain their investment
choices.
Closure
Review the content of the lesson by asking the following
questions.
1. Give an example of a whole number.
0, 1, 2, 3 and so on
19. When the student pairs have completed their work,
record their answers on a transparency of Visual 4.
2. Give an example of a fraction.
1/2, 1/8, 2/5 and so on
20. Explain that it is important for people to diversify their
stock portfolio. Diversification means buying stocks in various industries. Diversification protects people against losses
that might occur if a single company or an industry suffers
losses.
3. What is a mixed number?
A combination of a whole number and a fraction.
21. Investors seeking to diversify can consider companies
from a broad range of industries. Indicate the possibilities by
reviewing the list on Visual 4.
A. Abercrombie and Fitch is in the retail clothing industry.
We see Abercrombie and Fitch stores at malls throughout the country.
B. Dave and Buster’s offers video games and other entertainment for adults.
C. Sony Corporation is part of the electronic equipment
industry.
D. General Mills is part of the wholesale food industry. Its
products are sold in grocery stores and other food stores
throughout the country.
5. How would you write 241/4 as a decimal?
24.25
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4. Give an example of a mixed number.
21/2, 37 5/8 and so on
6. What is a stock?
An ownership share or shares of ownership [equity] in
a corporation.
7. What do investors do if they diversify?
They buy stocks from various industries.
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3. A stock is
Assessment
Multiple-Choice Questions
a. ownership in a corporation.
1. Which of the following is a mixed number?
b. a debt owed to a corporation.
a. 23
c. buying stocks in various industries.
b. 23.75
d. a debt a corporation owes.
4. Diversification means
c. 0
a. ownership in a corporation.
d. 31/4
b. a debt owed to a corporation.
2. Which of the following is equal to 241/2?
a. 24.25
c. buying stocks in various industries.
b. 24.75
d. a debt a corporation owes.
c. 24.50
d. 24.21
Short-Response Questions
1. Use the information in the table below to answer the questions that follow.
52 Weeks
Stock
Sym
Hi
Lo
Close
44.50
SonyCp
SNE
60.50
59.50
59.50
26.75
22.25
GenMills
GIS
26.50
26.50
26.50
66.25
37.50
McDnlds
MCD
63.25
61.50
61.50
Hi
Lo
64.25
A. What was the highest price for General Mills stock during the last 52 weeks?_________________________
$26.75
B. Write this price as a mixed number. ____________
27 3/4
C. What was the closing price (last price) paid for a share of McDonald’s stock on this day? _____________
$61.50
2. Why is it important for individuals to diversify their stock portfolios?
Diversification protects people against losses that might occur if a single company or an industry suffers losses.
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1 Stock Prices
LESSON 1 VISUAL 1
MATH MATCH-UP PRACTICE
Draw a line to connect the mixed numbers to the whole numbers
and decimals that equal the same amount.
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351/4
35.50
351/2
35.75
353/4
35.25
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LESSON 1 VISUAL 2
INFORMATION FROM
THE
STOCK PAGES
52 Weeks
Stock
Sym
Hi
Lo
Close
Hi
Lo
68.5
47.50
Abercrombie
ANF 66.50 65.50 65.25
80.25 48.75
DaveBusters
DAB 77.25 74.25 74.25
64.25 44.50
SonyCp
SNE
60.50 59.50 59.50
26.75 22.25
GenMills
GIS
26.50 26.50 26.50
66.25 37.50
McDnlds
9.75
PepsiCo
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47.75
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MCD 63.25 61.50 61.50
PEP
ON
43.50 42.00 42.50
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1 Stock Prices
LESSON 1 VISUAL 3
STOCKS AND PRICES
Stocks
8
Prices
Abercrombie and Fitch
$65.25
Dave and Buster’s
$74.25
Sony Corporation
$59.50
General Mills
$26.50
McDonald’s
$61.50
PepsiCo
$42.50
Disney
$59.50
General Motors
$26.75
Coca-Cola
$63.25
Pfizer
$48.50
Nike
$37.25
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LESSON 1 VISUAL 4
STOCKS PURCHASES
Stock
Price
Abercrombie and Fitch
$65.25
Dave and Buster’s
$74.25
Sony Corporation
$59.50
General Mills
$26.50
McDonald’s
$61.50
PepsiCo
$42.50
Disney
$59.50
General Motors
$26.75
Coca-Cola
$63.25
Pfizer
$48.50
Nike
$37.25
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Cost to Cost to Cost to
Buy
Buy
Buy
10
50
100
Shares Shares Shares
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1 Stock Prices
LESSON 1 ACTIVITY 1
MATH MATCH-UP CARDS
10
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8.25
47.50
12.75
53.25
17.50
96.75
34.40
6.20
96.60
9.25
100.50
12.75
26.25
66.40
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LESSON 1 ACTIVITY 1
MATH MATCH-UP CARDS (CONTINUED)
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8 1/4
47 1/2
12 3/4
53 1/4
17 1/2
96 3/4
34 2/5
6 1/5
96 3/5
9 1/4
100 1/2
12 3/4
26 1/4
66 3/5
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LESSON 1 ACTIVITY 1
MATH MATCH-UP CARDS (CONTINUED)
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=
=
=
=
=
=
=
=
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LESSON 1 ACTIVITY 2
STOCK INFORMATION
The following table illustrates the sort of information that is on the stock pages of most newspapers.
52 Weeks
Stock
Sym
Hi
Lo
Close
Hi
Lo
68.5
47.50
Abercrombie
ANF
66.50
65.50
65.25
80.25
48.75
DaveBusters
DAB
77.25
74.25
74.25
64.25
44.50
SonyCp
SNE
60.50
59.50
59.50
26.75
22.25
GenMills
GIS
26.50
26.50
26.50
66.25
37.50
McDnlds
MCD
63.25
61.50
61.50
59.75
47.75
PepsiCo
PEP
43.50
42.00
42.50
1. The first two columns, labeled “52 Weeks Hi Lo,” list the highest and lowest prices of the respective
stocks during the last 52 weeks.
A. What was the highest price for Abercrombie and Fitch stock during the last 52 weeks?
__________
B. Write this price as a mixed number. __________
C. What was the lowest price of PepsiCo stock during the last 52 weeks? _________
D. Write this price as a mixed number. __________
2. The next column is labeled “Stock.” It provides an abbreviated (shortened) name for the company. In
the list below, draw lines to match each abbreviation with its complete company name.
Abbreviation
Abercrombie
DaveBusters
SonyCp
GenMills
McDnlds
PepsiCo
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Company Name
McDonald’s
PepsiCo
General Mills Company
Dave and Buster’s
Abercrombie and Fitch
Sony Corporation
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LESSON 1 ACTIVITY 2 (CONTINUED)
3. The next column is labeled “Sym.” This stands for symbol. A symbol is used in the stock market listings to identify each company’s stock.
A. What is the stock symbol for McDonald’s? __________
B. What is the stock symbol for Abercrombie and Fitch? __________
4. The next two columns are labeled “Hi” and “Lo.” These columns show the highest and lowest price
paid for the stock on that particular trading day. For example, on this day, the highest price paid for a
share of Dave and Buster’s stock was $77.25.
What was the lowest price paid for a share of General Mills stock on this day? __________
5. The next column shows the closing price for the stock. The closing price is the price of a share of the
stock in its last trade at the close of the market on this particular day.
A. What was the closing price (last price) paid for a share of PepsiCo stock on this day? _________
B. What was the closing (last price) paid for a share of Sony Corporation stock on this day?
__________
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LESSON 1 ACTIVITY 3
CALCULATING PURCHASES
1. Your teacher will assign you and your partner a stock. Write the name of the stock on this line.
__________________________________________________________________________
2. What is the price for a share of this stock? __________
3. Use the price to calculate how much it would cost to buy 10 shares of this stock, 50 shares of this
stock and 100 shares of this stock. Show your work.
a. How much would it cost to buy 10 shares of this stock?
b. How much would it cost to buy 50 shares of this stock?
c. How much would it cost to buy 100 shares of this stock?
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