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In this Warm-up, students recall previous course work solving problems involving percentage increase or decrease. This thinking will be useful when students use percentages to determine the change in stock prices in following activities.
Give students 4 minutes of quiet work time, and follow with a whole-class discussion. If necessary, remind students that they can use any strategies from previous courses to answer the percentages questions.
If students forget about using an equation to calculate percent increase or decrease, remind them that they can use the equation to figure out the answers to the questions.
The goal of this discussion is to review methods for calculating a percent increase or decrease. Invite students to share their responses and reasoning to each problem. Some strategies students may use include:
In this activity, students are introduced to the idea of the stock market and how the values of shares in a stock can change daily. They apply their understanding of negative numbers to percentage changes and money.
Tell students to close their books or devices (or to keep them closed). Display the table from the Task Statement for all to see. Give students 1 minute of quiet think time, and ask them to be prepared to share at least one thing they notice and one thing they wonder. Record and display their responses without editing or commentary for all to see. If possible, record the relevant reasoning on or near the table.
Tell students to open their books or devices, and introduce the concept of shares in a company. Shares have a specific value at a specific time that can change up or down. They represent a measure of the worth of the company. We sometimes express the change as a value in dollars so investors can see how much money they will make or lose. We can also present these as a percentage to compare companies in terms of growth.
Before students begin working on the task, consider asking how they would represent an increase or decrease in value so that it were easily apparent.
To familiarize students with the information in the table, consider asking which companies’ stocks increased in value and which companies’ stocks decreased in value from day 1 to day 2. Ask students to explain their reasoning and come to an agreement before anyone begins doing calculations.
| 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% |
Some students may struggle with completing the last row of the table, where the value on day 1 is unknown. Consider asking:
The purpose of this discussion is for students to share their responses and reasoning and to share strategies for calculating percent increase or decrease. Begin by inviting students to share their responses and reasoning for completing the rows for the electrical appliance company and the oil corporation. Poll the class to see which students used or did not use the percentage change to determine the unknown value.
Then invite students to share their responses and reasoning for determining the unknown values in the last two rows of the table.
In this activity, students are introduced to the concept of a stock portfolio. They calculate the value of a given number of shares in a company, the new value of the shares after a change in price, and the total value of a given portfolio. Students see both positive and negative values for both absolute and percent change.
Introduce the concept of a portfolio of stocks as a collection of shares of stocks in different companies. The portfolio can contain any number of companies and any combination of stocks and values. For example, an investor may choose to create a portfolio with the stocks of 5 different companies. The price per share of stock in each company will vary, and the investor can decide how many shares of stock in each company they want to own.
Give students 10 minutes of quiet work time, and follow with a whole-class discussion.
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.
| 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 |
| 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 |
The purpose of this discussion is to continue to build students' understanding of the context of investing in shares of stocks, in preparation for students to build their own stock portfolio in the next activity. Begin by inviting students to share their responses and reasoning for whether the value of the given portfolio increased or decreased. Record their thinking for all to see. If necessary, consider discussing the following questions:
Optional
Your Own Stock Portfolio Handout
In this activity, students model making an investment in the stock market when they create their own portfolio of stocks from a given list of fictional companies and a budget of \$100 (MP4). Students are then told the change in each stock's price after 3 months and determine a new value of their portfolio.
Distribute copies of the page labeled “Stock Prices” from the blackline master. Tell students that they each have \$100 to build their stock portfolio. Give students 7–8 minutes of quiet work time, then pause for a brief whole-class discussion. Invite students to share their portfolio with a partner, explaining which stocks they chose and why. Tell students to check each other’s work.
Then distribute copies of the page labeled “Changes in Stock Prices after 3 Months” from the blackline master. Give students another 7–8 minutes to determine how the value of their portfolio changed, and follow with a whole-class discussion.
Your teacher will give you a list of stocks. The price shown for each stock is the cost of 1 share.
The purpose of this discussion is for students to discuss the different ways to think about the change in value of their stocks. If possible, display the list of "Changes in Stock Prices after 3 Months," and discuss the following questions: