SHS

General Mathematics
Module 33:
Stocks and Bonds
General Mathematics
Grade 11/12-Module 33: Stocks and Bonds
First Edition, 2020

Copyright © 2020
La Union Schools Division
Region I

All rights reserved. No part of this module may be reproduced in any form without
written permission from the copyright owners.

Development Team of the Module

Author: Remedios D. Labiano, MT-II

Editor: SDO La Union, Learning Resource Quality Assurance Team

Illustrator: Ernesto F. Ramos Jr., P II

Management Team:

Atty. Donato D. Balderas, Jr.

Schools Division Superintendent

Vivian Luz S. Pagatpatan, Ph.D.

Assistant Schools Division Superintendent

German E. Flora, Ph.D., CID Chief

Virgilio C. Boado, Ph.D., EPS in Charge of LRMS

Erlinda M. Dela Peña, Ed.D., EPS in Charge of Mathematics

Michael Jason D. Morales, PDO II

Claire P. Toluyen, Librarian II
 11/12
General
Mathematics
Module 33:
Stocks and Bonds
 Target

Stocks and Bonds are two of the most traded types of assets - each
available for sale on several platforms or through a variety of markets or
brokers (Investopedia.com). Both are examples of Passive Investments
where the investors involve less buying and selling.

After going through this learning module, you are expected to:

1. illustrate stocks and bonds (M11GM-IIe- 1);

2. distinguish between stocks and bonds (M11GM-IIe- 2);
3. describe the different market for stocks and bonds (M11GM-IIe- 3);
and
4. analyze the different market indices for stocks and bonds
(M11GM-IIe- 4).

Specifically, you are going to:

1. define stocks and bonds;

2. make a comparison between stocks and bonds;

3. familiarize yourselves with the market for stocks and bonds; and

4. answer problems involving the market indices of stocks and bonds.

Before going on, check how much you know about this topic. Answer the pretest
on the next page in a separate sheet of paper
Pre-Test
Directions: Write the CAPITAL LETTER of the best answer on your answer
sheet.

1. Which is an investment where the investors become a part owner of the

company?
A. Bank Deposits C. Fixed Deposits
B. Bonds D. Stocks

2. Which of the following statements is TRUE about stocks?

A. It is very risky.
B. Prices vary every day.
C. Investors become part owner of the company.
D. All of the above

3. Which of the following statements is NOT TRUE about bonds?

A. Low risk but low yield.
B. Investors become part owner of the company.
C. Appropriate for retirees or for those who will need the money soon.
D. Investors are guaranteed with interest payments and a return of
their money at the maturity date.

4. Where can you buy or sell stocks?

A. Grocery C. Public Market
B. Mall D. Stock Market

5. What do you call the current price of a stock at which it can be bought/sold?
A. Cash Value C. Market Value
B. Current Value D. Place Value

6. A government agency issued bond certificates indicating 10.25% annual

interest. How much yield will an investor get after a year if he invests two
million pesos?
A. Php200 000 C. Php210 000
B. Php205 000 D. Php215 000

For numbers 7 - 8, use the information below.

Salaknib Incorporated issued 200 000 shares of stocks. Fifteen
percent of these are preferred stocks and the rest are common stocks.
7. How many shares are common stocks?
A. 170 000 B. 180 000 C. 190 000 D. 200 000

8. How many shares are preferred stocks?

A. 10 000 B. 20 000 C. 30 000 D. 40 000

For numbers 9 – 10, analyze the given statements.

9. You can buy/sell shares of stock anywhere.
A. The statement is ALWAYS TRUE
B. The statement is SOMETIMES TRUE
C. The statement is NEVER TRUE
D. Cannot be determined
10. Greediness is a good attitude of stockholders.
A. The statement is ALWAYS TRUE
B. The statement is SOMETIMES TRUE
C. The statement is NEVER TRUE
D. Cannot be determined

For numbers 11 - 15, please refer to the given listing on stocks.

52 weeks

HI LO STOCK DIV YLD% VOL (100s) CLOSE NETCHG

125 110 ABC 3.25 2.55 3 250 1I5.50 2.15

11. What was the lowest price of the stock for the last 52 weeks?
A. Php110 B. Php115 C. Php120 D. Php124

12. How much was the dividend per share last year?
A. Php3.00 B. Php3.25 C. Php3.50 D. Php3.75

13.What was the annual percentage yield last year?

A. 2.55% B. 3.55% C. 4.55% D. 5.55%

14. What was the closing price in the last trading day?
A. Php105.50 B. Php115.50 C. Php125.50 D. Php135.50

15. What was the closing price the day before the last trading day?
A. Php113.35 B. Php114.35 C. Php115.35 D.Php116.35
 Lesson STOCKS AND BONDS
1

Jumpstart

Stocks and bonds are certificates that are sold to raise money for
starting a new company or for expanding an existing company. They are
also called securities, and people who buy them are called investors
(www.scholastic.com).

For you to understand the lesson well, do the following

activities. Have fun and good luck!

Activity 1: FACT OR BLUFF

Directions: Write FACT if the statement is correct otherwise write BLUFF.
1. Bond is an investment wherein the investors become part
owner of the company.
2. Bond is a way of raising money by borrowing from investors.
3. Stockholders have NO voting rights during board meetings.
4. Bondholders have voting rights during board meetings.
5. Stocks have high risk but higher yield.
6. Bonds have low risk but lower yield.
7. Prices of bonds vary every day.
8. Stockholders are guaranteed with fixed interest at the
maturity date.
9. Bond is appropriate for long term investment.
10. Stock is appropriate for those who need the money soon.
 Discover

Source: wallstreetmojo.com

STOCKS
Some corporations may raise money for their expansion by issuing
stocks. Stocks are shares in the ownership of the company. Owners of
stocks may be considered as part owners of the company. There are two
types of stocks: common stock and preferred stock. Both will receive
dividends or share of earnings of the company. Dividends are paid first to
preferred shareholders.

Stocks can be bought or sold at its current price called market value.
When a person buys some shares, the person receives a certificate with
the corporation’s name, owner’s name, number of shares and par value per
share (DepEd General Mathematics Learner’s Module - 2016).

Sample Problem:

Rang-Ay Corporation issued 250 125 shares of stocks to its investors.

Forty percent of this is preferred stocks and the rest, common stocks.
a. How many common stocks were issued?
b. How many preferred stocks were issued?

Solution:
a. Common stocks = 100% - 40% = 60% = 0.6
250 125 x 0.6 = 150 075 Common Stocks

b. Preferred stocks = 40% = 0.4

250 125 x 0.4 = 100 050 Preferred Stocks
BONDS
Bonds are interest bearing security which promises to pay an amount
of money on a certain maturity date as stated in the bond certificate.
Unlike the stockholders, bondholders are lenders to the institution which
may be a government or private company. Some bond issuers are the
national government, government agencies, government owned and
controlled corporations, non-bank corporations, banks and multilateral
agencies. Bondholders do not vote in the institution’s annual meeting but
the first to claim in the institution’s earnings. On the maturity date, the
bondholders will receive the face amount of the bond. Aside from the face
amount due on the maturity date, the bondholders may receive coupons
(payments/interests), usually done semi-annually, depending on the
coupon rate stated in the bond certificate. (DepEd General Mathematics
Learner’s Module - 2016).

Sample Problem:

A government owned corporation issued bond certificates bearing 6.25%

annual interest. Mrs. Dela Cruz, a retired teacher, invested Php1.25
Million. How much will her investment be after a year?

Solution:
6.25% = 0.0625
Interest = Php1 250 000 x 0.0625 = Php78 125
Total Investment after 1 year = Php1 250 000 + Php78 125
= Php1 328 125

Explore

Enrichment Activity: Stocks VS Bonds

Directions: Make a comparison between Stocks and Bonds along the

indicated areas by completing the given table below.

Area Stocks Bonds

Ownership of
the business
Price
Income
Risk of
Investment
Possible
Clients
Assessment

Solve the following problems correctly. Show your solution and

enclose your final answers in your answer sheet.

1. Nasudi Corporation issued 75 200 shares of stocks to its investors.

Twenty-five percent of this is preferred stocks and the rest, common
stocks.
a. How many common stocks were issued?
b. How many preferred stocks were issued?

2. A government agency issued bond certificates bearing 7½ % annual

interest. Mr. Padua, a retired engineer, invested Php2.175 Million. How
much will his investment be after a year?

Deepen

For you to better understand the lesson, read the given situation below
and answer the question that follows. Good luck and have fun!

Namnama Corporation is planning to have a business expansion

but they are short of capital. Because of this, the Board of Directors
agreed to offer their shares of stocks to possible business partners.
Aside from that, they will also issue Bond Certificates at 6.25%
annual interest to interested investors.

If you want to invest your money to Namnama Corporation,

which will you prefer, to be their Stockholder or Bondholder? Justify
your answer.

Rubric for Scoring

5 Points 4 Points 3 Points 2 Points 1 Point
Answer is Answer is Answer is NOT Answer is NOT Answer is NOT
clearly clearly clearly clearly connected to
stated and stated but stated but stated and the question.
uses does NOT use uses does NOT use
grammatically grammatically grammatically grammatically
correct correct correct correct
sentences. sentences. sentences. sentences.
 Lesson MARKET INDICES FOR STOCKS AND BONDS
2

Jumpstart

Market Indices for Stocks and Bonds determine the country’s economic
progress. These indices gather data from major companies that greatly affect
our economy. These companies represent a particular sector in our economy.
In the Philippines we have San Miguel Corporation for manufacturing, the oil
companies Petron, Shell, and Caltex, for telecommunications, Smart and
Globe, for banking/financial industry we have BDO, Metrobank and BPI and
many others.

Activity 1: NAME THAT BUSINESS

Directions: Determine the company/business which uses the given tag

line. Write your answers in the answer sheet.

1. We find ways.

2. Bida ang sarap!

3. Taste the feeling.

4. You’re in good hands.

5. We’re changing lives.

6. Abot mo ang mundo.

7. May liwanag ang buhay.

8. The power to lead.

9. We’ve got it all for you!

10. We fuel success.

 Your answers in the previous activity are just some of the Top 30
corporations in our country. These businesses play a very vital role in our
country’s economy and in the market indices of stocks and bonds. Such
corporations are quoted in the Philippine Stock Exchange - PSE which is in
charge of ensuring proper market conditions for the trading of the country’s
stocks (aseanup.com)
The assessment below will give your ideas on the concepts that will be
discussed in the market indices of stocks and bonds.
Directions: Answer the following questions. Write the CAPITAL LETTER of
your choice in your answer sheet.

1. What do you call the measure of a portion of the bond market?

A. Bond C. Bond Market Index
B. Bond Market D. Stock Market Index

2. Where can see you stock index?

A. Comics C. Handbook
B. Diary D. Newspapers

3. Which is the main platform of bonds or fixed income securities in

the Philippines?
A. FedEx C. PDEx
B. PEDEx D. PSEx

4. Which does NOT refer to bonds?

A. t-bills C. t-notes
B. t-bonds D. t-tests

5. What do you call the ratio of the change in the index value from the
previous trading day (Chg) and the value of the index (Val)?
A. Index C. Value
B. Change D. %Chg
 Discover
The Stock Index can be a standard by which investors can
compare the performance of their stocks. This is being reported in the
business section of newspapers, magazines or even online (DepEd General
Mathematics Learner’s Module - 2016)

The table below is an example of how a list of index value is presented

(values are hypothetical).

Index Val Chg % Chg

PSEi 6 253 .84 -15.22 -0.24

Financials 4 075.22 4.28 0.11

Holding Firms 6 925.32 2.87 0.04

Industrial 12 298.21 252.53 2.05

Property 2 125.82 -10.97 -0.52

Services 2 584.33 287.32 11.12

Mining and Oil 12 947. 82 29.21 0.23

where:

Val - value of the index

Chg - change of the index value from the previous trading day (value
today minus value yesterday).

%Chg - ratio of Chg to Val (Chg divided Val)

The bond market index is a measure of a portion of the bond

market. The main platform for bonds or fixed income securities in the
Philippines is the Philippine Dealing and Exchange Corporation (PDEx).
Unlike stock indices which are associated with virtually every stock market
in the world, bond market indices are far less common. In fact, other than
certain regional bond indices which have subindices covering the
Philippines, our bond market does not typically compute a bond market
index. Instead, the market rates produced from the bond market are
interest rates which may be used as benchmarks for other financial
instruments.
 Government bonds are auctioned out to banks and other brokers and
dealers every Monday by the Bureau of Treasury. Depending on their terms
(or tenors), these bonds are also called treasury bills (t-bills), treasury notes
(t-notes), or treasury bonds (t-bonds). The resulting coupon rates and the
total amount sold for these bonds are usually reported by news agencies on
the day right after the auction. Since these bond transactions involve large
amounts, these bonds are usually limited to banks, insurance firms, and
other financial institutions. The banks may then re-sell these bonds to its
clients.

Despite the fact that bond investing is considered safer than stock
investing, there is still some risk involved. The most extreme scenario is
default by the issuer. In this case, the investor can lose not only the
coupons, but even the money invested in the bond, Bond investors should
then be aware of the financial condition of the issuer of the bond and of
prevailing market conditions. (DepEd General Mathematics Learner’s Module
- 2016).

Sample Problem

Analyze the given listing of stocks then answer the questions that
follow:

52 weeks

HI LO STOCK DIV YLD% VOL CLOSE NETCHG

(100s)

105 100 RDL 2.75 2.25 5 250 125.50 -0.75

15 12 YKL 1.25 1.2 1 750 14.55 0.23

For stock RDL

1. What was the lowest price of the stock for the last 52 weeks?

Answer: Php100

2. How much was the dividend per share last year?

Answer: Php2.75

3. What was the annual percentage yield last year?

Answer: 2.25%

4. What was the closing price in the last trading day?

Answer: Php125.50

5. What was the closing price the day before the last trading day?
Answer: Php125.50 - (Php-0.75) = Php126.25

For stock YKL

1. What was the highest price of the stock for the last 52 weeks?

Answer: Php15

2. How much was the dividend per share last year?

Answer: Php1.25

3. What was the annual percentage yield last year?

Answer: 1.20%%

4. What was the closing price in the last trading day?

Answer: Php14.55

5. What was the closing price the day before the last trading day?

Answer: Php14.55 - Php0.23 = Php14.32

Explore

Enrichment Activity: My Venn

For further understanding of the market indices of stocks and bonds,

write their similarities and differences using Venn Diagram.

Stocks Bonds
Assessment

To enhance your understanding of the different market indices of

stocks, study the given table and answer the questions that follows in your
answer sheet.

52 weeks

HI LO STOCK DIV YLD% VOL CLOSE NETCHG

(100s)

150 140 CRD 5.25 3.75 2 750 135.70 0.45

22 17 JCL 1.05 1.32 4 125 19.35 -0.21

For stock CRD

1. What was the lowest price of the stock for the last 52 weeks?
Answer: _________
2. How much was the dividend per share last year?
Answer: _________
3. What was the annual percentage yield last year?
Answer: _________
4. What was the closing price in the last trading day?
Answer: _________
5. What was the closing price the day before the last trading day?
Answer: __________________________________
For stock JCL
6. What was the highest price of the stock for the last 52 weeks?
Answer: __________________
7. How much was the dividend per share last year?
Answer: __________________
8. What was the annual percentage yield last year?
Answer: __________________
9. What was the closing price in the last trading day?
Answer: __________________
10. What was the closing price the day before the last trading day?
Answer: ________________________________
 Deepen
After learning about the market indices of stocks and bonds,
you are now ready to make a choice. Read the given situation below then
answer the question that follows in your answer sheet.

Mr. Ramos, a widower and a father of two, received Php1.5

Million as retirement benefits. He is financially secured because his
children have stable jobs and they are giving him a monthly
allowance which is adequate enough to pay his bills, foods and
medications. Because of this, he wanted to invest his retirement
benefits so that his children will benefit from it someday.

If you are a financial advisor, which investment will you

recommend to Mr. Ramos, stocks or bonds? Why?

Rubric for Scoring

5 Points 4 Points 3 Points 2 Points 1 Point
Answer is Answer is Answer is NOT Answer is NOT Answer is NOT
clearly clearly clearly clearly connected to
stated and stated but stated but stated and the question.
uses does NOT use uses does NOT use
grammatically grammatically grammatically grammatically
correct correct correct correct
sentences. sentences. sentences. sentences.

Good job! You have already understood the lesson. Are you ready to
summarize what you have learned?

Reflect on the activities you have done in this lesson by completing

the following sentences. Write your answers in your journal notebook.

I learned that I
_____________________________________________________.
I surprised that I __________________________________________________.
I noticed that I _____________________________________________________.
I discovered that I
__________________________________________________.
I am pleased that I _________________________________________________.
 Gauge

Directions: Write the CAPITAL LETTER of the best answer on your answer
sheet.

1. A government agency issued bond certificates indicating 10.25% annual

interest. How much yield will an investor get after a year if he invests two
million pesos?
A. Php200 000 C. Php210 000
B. Php205 000 D. Php215 000

For numbers 2 - 3, use the following information:

Salaknib Incorporated issued 200 000 shares of stocks. Fifteen
percent of these are preferred stocks and the rest are common stocks.
2. How many shares are common stocks?
A. 170 000 C. 190 000
B. 180 000 D. 200 000

3. How many shares are preferred stocks?

A. 10 000 C. 30 000
B. 20 000 D. 40 000

For numbers 4 – 5, analyze the given statements.

4. You can buy/sell shares of stock anywhere.
A. The statement is ALWAYS TRUE
B. The statement is SOMETIMES TRUE
C. The statement is NEVER TRUE
D. Cannot be determined

5. Greediness is a good attitude of stockholders.

A. The statement is ALWAYS TRUE
B. The statement is SOMETIMES TRUE
C. The statement is NEVER TRUE
D. Cannot be determined

For numbers 6 - 10, please refer to the given listing on stocks.

52 weeks

HI LO STOCK DIV YLD% VOL CLOSE NETCHG

(100s)

125 110 ABC 3.25 2.55 3 250 1I5.50 2.15

6. What was the lowest price of the stock for the last 52 weeks?
A. Php110 B. Php115 C. Php120 D. Php124

7. How much was the dividend per share last year?

A. Php3.00 B. Php3.25 C. Php3.50 D. Php3.75

8.What was the annual percentage yield last year?

A. 2.55% B. 3.55% C. 4.55% D. 5.55%

9. What was the closing price in the last trading day?

A. Php105.50 B. Php115.50 C. Php125.50 D. Php135.50

10. What was the closing price the day before the last trading day?
A. Php113.35 B. Php114.35 C. Php115.35 D.Php116.35

11. Which is an investment where the investors become a part owner

of the company?
A. Bank Deposits C. Fixed Deposits
B. Bonds D. Stocks

12. Which of the following statements is TRUE about stocks?

A. Investors become part owner of the company.
B. Prices vary every day.
C. It is very risky.
D. All of the above

13. Which of the following statements is NOT TRUE about bonds?

A. Low risk but low yield.
B. Investors become part owner of the company.
C. Appropriate for retirees or for those who will need the money
soon.
D. Investors are guaranteed with interest payments and a return
of their money at the maturity date.

14. Where can you buy or sell stocks?

A. Grocery C. Public Market
B. Mall D. Stock Market

15. What do you call the current price of a stock at which it can be sold?
A. Cash Value C. Market Value
B. Current Value D. Place Value
References

Printed Materials:

Department of Education-Bureau of Learning Resources (DepEd-

BLR). 2016. General Mathematics Learner’s Module. Pasig City,
Philippines. Lexicon Press Inc.

Melosantos, Luis Allan, et.al. 2016. Math Connections in the Digital

Age-General Mathematics. Quezon City, Philippines. Sibs
Publishing House, Inc.

Websites:

Stocks and Bonds. Retrieved October 20, 2020 from

www.investopedia.com

Stocks and Bonds. Retrieved October 28, 2020 from

www.scholastic.com>articles>stocks and bonds

Stocks vs Bonds/Top 7 Difference Between. Retrieved October 20,

2020 from wallstreetmojo.com

Top 30 Companies from the Philippines’ PSEi-ASEAN UP. Retrieved

October 28, 2020 from aseanup.com>top-30-companies

20
 21
Pre-Test
1. D 6. B 11. A
2. D 7. A 12. B
3. B 8. C 13. A
4. D 9. C 14. B
5. C 10. C 15. A
Lesson 1
Jumpstart
Activity 1 - Fact or Bluff
1. bluff 2. fact 3. bluff 4. bluff 5. fact
6. fact 7. bluff 8. bluff 9. bluff 10. bluff
Explore
Stocks VS Bonds - Answers may vary
Assessment
1. a 56 400 shares of stocks b.18 800 shares of stocks 2. Php2 338 125
Deepen
Answers may vary
Lesson 2
Jumpstart
Activity 2 - Name That Business
1. BDO 2. Jollibee 3. Coca-Cola 4. Metrobank 5. PLDT
6.Globe 7. MERALCO 8. Smart 9. SM Stores 10. Petron
1. C 2. D 3. C 4. D 5. D
Explore
My Venn - answers may vary
Assessment
1. Php140 6. Php22
2. Php5.25 7. Php1.05
3. 3.75% 8. 1.32%
4. Php135.70 9. Php19.35
5. Php135.25 10. Php19.56
Deepen
Answers may vary
Gauge
1. B 6. A 11. D
2. A 7. B 12. D
3. C 8. A 13. B
4. C 9. B 14. D
5. C 10. A 15. C
Answer Key