Unit 7, Lesson 23
The Stock Market
Accelerated 6
23.1
Warm-up
Revisiting Interest and Depreciation
- Lin deposited $300 in a savings account that has a 2% interest rate per year. How much is in her account after 1 year? After 2 years?
- Diego wants to sell his bicycle. It cost $150 when he bought it but has depreciated by 15%. How much should he sell it for?
23.2
Activity
Gains and Losses
- Here is some information from the stock market in September 2016. Complete the table.
company value on day 1 (dollars) value on day 2 (dollars) change in value (dollars) change in value as a percentage of day 1 value mobile tech company 107.95 111.77 3.82 3.54% electrical appliance company 114.03 2.43 oil corporation 26.14 -3.83% department store company 7.38 7.17 jewelry company 70.30 2.27% - Which company's change in dollars had the largest magnitude?
- Which company's change in percentage had the largest magnitude?
23.3
Activity
What Is a Stock Portfolio?
One way to invest money in the stock market is to create a portfolio, or a collection of different stocks. That way, if one stock decreases in value, the portfolio won’t lose all of its value at once.
- Here is an example of someone’s stock portfolio. Complete the table to show the total value of each investment.
company price (dollars) number of shares total value (dollars) technology company 107.75 98 airline company 133.54 27 film company 95.95 135 sports clothing company 58.96 100 - Here is the same portfolio the next year. Complete the table to show the new total value of each investment.
company old price (dollars) price change new price (dollars) number of shares total value (dollars) technology company 107.75 +2.43% 98 airline company 133.54 -7.67% 27 film company 95.95 87.58 135 sports clothing company 58.96 -5.56% 100 - Did the entire portfolio increase or decrease in value over the year?
23.4
Activity
Your Own Stock Portfolio
Your teacher will give you a list of stocks. The price shown for each stock is the cost of 1 share.
- Select a combination of stocks with a total value close to, but no more than, $100. List the stock, the number of shares, and the total cost.
Pause here for a class discussion. - Using the new list, how did the total value of your selected stocks change? Explain your reasoning.
Glossary
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