By Tom Schillig, Dee Smith, and Karen Balog



Stock Market Madness

By:

Tom Schillig, Dee Smith, and Karen Balog

Subject: Data Analysis

Grades: 7th or 8th

Strand: Algebra, Data Analysis & Probability

Topic: Stock Market

Objectives:

The student will choose a stock with which to generate and evaluate a graph of a company's last five-year monthly stock price average by the use of a historical quote on a portfolio web site and through answering select questions on a worksheet. The student will create a table of their stock on a portfolio web site and interpret a stock’s prospective using the difference between the stocks last 52-week high and low, the Beta, the stock’s Price/Earning ratio, the stock’s opening price today, and the one day change of the stock. Other items the student might want to consider in the interpretation of data the thirty -day average volume of traded shares and the percentage of yield. The student will write a position statement expressing an opinion on the purchase of this stock.

Materials:

• Microsoft Word

• Spreadsheet (Excel)

• Internet sites such as quote., , or

• Computer lab

• Calculators

• Teacher

Expected Time: 2-3 40 minute class periods

Stock Market Madness

By:

Tom Schillig, Dee Smith, and Karen Balog

Description: The student will interpret graphs, charts, tables, and percents in the selection of a mock purchase of stock.

Keywords: interpret, graphs, charts, tables, percents

Prerequisite: The student must have a knowledge of stock market terms such as beta, p/e ratio, and yield. The student should also have basic graphing and Internet search skills.

Grades: 7, 8

Concepts:

The Internet has made available an abundance of information in our society. Tables, charts, and graphs give us a visual picture of this information. Other math concepts such as fraction, decimals, and percentages are a common occurrence in these visual representations. Students will read, interpret, and use the information to identify patterns, note trends, and draw conclusions from the data.

Assessment:

Evaluation will be based upon class participation, peer and self-evaluations forms, completion of the written assignment, interpretation of data, and their stock purchasing decisions.

Sharing:

The student will demonstrate a clear understanding of the concepts of data analysis by presenting their conclusions to the other members of their group.

Results:

We expect the student to gain a more in depth understanding of the stock market. We want this exercise to foster conversation at home about stock purchases the family has made.

Proficiency Objectives:

OPT 9th & 10th Grade Objectives

5. Solve problems and make applications involving percentages.

12. Read, interpret, and use tables, charts, maps, and graphs to identify patterns, note trends, and draw conclusions.

Learning Objectives:

The student will choose a stock to generate and evaluate a graph of a company's last five-year monthly stock price average by the use of a historical quote on a portfolio web site and through answering select questions on a worksheet. The student will create a table of their stock on a portfolio web site and interpret a stock’s prospective using the difference between the stocks last 52-week high and low, the Beta, the stock’s Price/Earning ratio, the stock’s opening price today, and the one day change of the stock. Other items the student might look want to consider in the interpretation of data are the thirty -day average volume of traded shares and the percentage of yield. The student will write a position statement expressing an opinion on the purchase of this stock.

Task Overview:

A group of five students will use company and various stock web sites such as Yahoo Finance (quote.) to compare and contrast a financial history of five companies for the purpose of selecting and purchasing shares of stock. Students will interpret graphs to obtain information on the financial history of each company to determine market patterns, determine financial trends, and draw conclusions to determine the best stock to purchase by comparing and contrasting the information from the various companies. Some students may wish to investigate a simulated stock market game found on the Internet.

Learning Strategies:

1. Review stock terms such as: Beta (how the stock responds to the changing market, a Beta close to zero signifies little change within the market), P/E Ratio (the price one would expect to pay to make one dollar of profit), Yield (the dividends paid by the company and expressed as a percentage of the price of the stock), thirty day average volume, and high and low prices.

2. Review the conversion of fractions to decimals.

3. Review the rounding of money to the nearest cent.

4. Divide the class into groups of four or five. Explain that the group is to brainstorm and come up with the names of four or five stocks in which they would like to invest. Each stock is to be assigned to one student to research by:

a. Evaluation of a graph of the company's last five year monthly stock price average by the use of a historical quote on a portfolio web site

b. Answering select questions on a worksheet.

c. Creation of a table consisting of the difference between the stocks last 52-week high and low, the Beta, the stock’s Price/Earning ratio, the stock’s opening price today, and the one-day change of the stock.

d. Write a position statement to interpret of the stock’s prospective by the use of above mentioned graph and table.

e. Other items the student might want to consider in the interpretation of data are the thirty-day average volume of traded shares and the percentage of yield.

5. The student will present his/her findings to the group.

6. EXTENSION: The group will select one stock to purchase and chart weekly over the next eight weeks.

Tools/Resources:

• Microsoft Word

• Spreadsheet (Excel)

• Internet sites such as quote., , or

• Computer lab

• Calculators

• Teacher

Classroom Management:

This lesson on stock selection will be taught to seventh and or eighth grade students. Each class period is forty-two minutes in length with approximately twenty students in each class. Teaching time of these lessons will vary in the length of time needed, depending on the individual students.

Name__________________________ Period ________ Date ____________

Stock Market Madness

Directions: Your group will brainstorm to determine the companies that you would like to invest in. Each student will select one of these companies and complete this worksheet to determine if it will indeed be a good investment.

Company Name: _______________________________________________

Stock Market Symbol ____________________

Web Site Address: _____________________

52 week high _____________

Range of high and low _____________

52 week low _______________

Beta _______ Yield _____ P/E Ratio _______ 30-Day Average Volume ___________

Opening Price today _____________ Change _____________

Position Statement

The paragraph will include, but not be limited to, the following: when the stock reached its five-year low, when the stock achieved its five-year high, is there a trend shown by the stock in the last five-years, and use the above information to describe the stock’s performance in the current year. The stock will be held for a two month period. From the five-year monthly graph, predict how your stock will do over the two month period your group will own the stock. You may continue on the back if needed.

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