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General Mathematics: Stocks and Bonds
General Mathematics: Stocks and Bonds
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.
Management Team:
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:
3. familiarize yourselves with the market for stocks and bonds; and
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.
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
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
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).
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:
Solution:
a. Common stocks = 100% - 40% = 60% = 0.6
250 125 x 0.6 = 150 075 Common Stocks
Sample Problem:
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
Ownership of
the business
Price
Income
Risk of
Investment
Possible
Clients
Assessment
Deepen
For you to better understand the lesson, read the given situation below
and answer the question that follows. Good luck and have fun!
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.
1. We find ways.
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)
where:
Chg - change of the index value from the previous trading day (value
today minus value yesterday).
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
1. What was the lowest price of the stock for the last 52 weeks?
Answer: Php100
Answer: Php2.75
Answer: 2.25%
Answer: Php125.50
5. What was the closing price the day before the last trading day?
Answer: Php125.50 - (Php-0.75) = Php126.25
1. What was the highest price of the stock for the last 52 weeks?
Answer: Php15
Answer: Php1.25
Answer: 1.20%%
Answer: Php14.55
5. What was the closing price the day before the last trading day?
Explore
Stocks Bonds
Assessment
52 weeks
Good job! You have already understood the lesson. Are you ready to
summarize what you have learned?
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.
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
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:
Websites:
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