General Mathematics: Quarter 2 - Module 10: Market Indices For Stocks and Bonds
General Mathematics: Quarter 2 - Module 10: Market Indices For Stocks and Bonds
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Thank you.
What I Need to Know
Previously, you learned how to illustrate stocks and bonds and distinguish between
stocks and bonds, and how to solve problems involving stocks and bonds.
What I Know
Let’s find out how far you know about this topic! Please take this challenge! Have
Fun! Choose the letter of the best answer. Write the chosen letter on a separate
sheet of paper.
52- 52-
VOLUME NET
WK- WK- STOCK HIGH LOW DIV CLOSE
(100s) CHG
HIGH LOW
64.30 61.00 ABC 63.00 60.00 .70 3050 64.20 0.20
98.00 82.00 DEF 98.00 80.00 .30 700 98.20 -0.2
88.00 84.50 GHI 87.55 83.50 .50 1000 87.50 0.20
74.00 80.50 JKL 72.55 70.50 .30 900 72.50 0.20
2. What is the lowest price for the past 52 weeks of stock DEF?
a. ₱82
b. ₱84
c. ₱88
d. ₱98
4. What was the closing price the day before the last trading day of stock GHI?
a. ₱87.60
b. ₱87.50
c. ₱87.40
d. ₱87.30
5. During the past 52 weeks, which stocks in the table sold at the lowest price?
a. ABC
b. DEF
c. GHI
d. JKL
7. Which stocks have the lowest shares were traded for the day?
a. ABC
b. DEF
c. GHI
d. JKL
8. What is the net change between the two last trading days of stock JKL?
a. −0.20
b. 0.20
c. 0.30
d. 0.50
9. What is the total number of trader who wishes to buy a total of 365,100
shares at ₱22.60 per share?
a. 120
b. 130
c. 140
d. 150
11. What is the total number of trader who wishes to buy a total of 546,500
shares at ₱22.50 per share?
a. 12
b. 40
c. 150
d. 160
12. How many trader/s is willing to sell his/her 185,600 shares for ₱22.90 per
share?
a. 6
b. 4
c. 2
d. 1
13. What is the total number of trader who wishes to buy a total of 71,600
shares at ₱22.55 per share?
a. 12
b. 40
c. 150
d. 160
14. It refers to the number of individual buy orders and the total number of
shares they wish to buy.
a. ask size
b. bid size
c. ask price
d. bid price
Learning how to invest your money is indispensable for your future. One of the
primary benefits of investing in the stock market is the chance to grow your money.
You have learned from your previous modules on how to find the dividend per share,
determine the stock yield ratio and compare two or more investments. This module
will help you analyze the different market indices for stocks and bonds and interpret
the theory of efficient markets.
What’s In
Let us start your journey by recalling the previous lessons you already learned about
stocks and bonds.
Activity 1
Study the given table and calculate the gain or loss for each item and record your
answer in the fourth column under “Change in Price”. In the fifth column, write
whether the change in price is a gain or loss.
1 ₱1,552.50 ₱1,580.60
2 ₱468.90 ₱449.80
3 ₱345.70 ₱390.90
4 ₱1,298.20 ₱1,250.50
5 ₱456.30 ₱600.00
Multiply the Number of Items by the Price per Item to calculate the Total
Cost of the Items.
Number of
Item Price Per Item Total Cost of the Items
Items
1 600 ₱85.60
2 150 ₱80.50
3 65 ₱325.50
4 450 ₱165.00
5 70 ₱123.00
Activity 3
Read each problem below and answer the questions that follow:
Jhom owns 85 shares of common stock, worth ₱500 per value. If the corporation
1
declares a 6 % dividend, (a) what is the total dividend that Jhom should get?
4
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________
(b) Did Jhom make the right decision to have a share in the stock market? Yes or
No? Explain why.
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________
Now, you already know how to find the dividend per share and determine the stock
yield ratio. Also, you already learned how to compare the two or more investments. I
am confident that you are now ready for the new lesson.
Stock on You!
The table below shows how information about stocks can be presented (values are
hypothetical).
52-
52-WK- VOLUME NET
WK- STOCK HIGH LOW DIV CLOSE
HIGH (100s) CHG
LOW
74.30 68.00 AAA 70.00 69.50 .70 9050 70.25 0.10
115.00 82.00 BBB 113.90 112.30 .30 10700 113.3 -0.20
88.00 84.50 CCC 87.55 83.50 .50 500 87.50 0.20
57.19 35.80 DDD 56.00 54.20 .28 10200 56.20 -0.15
31.60 23.25 EEE 30.00 27.80 1.70 1500 30.00 0.30
1. Give the highest and lowest prices for the past 52 weeks.
2. Give the highest and lowest prices for AAA shares yesterday.
3. What was the dividend per share last year?
4. What was the closing price on the last trading day?
5. What was the closing price the day before the last trading day?
1. During the past 52 weeks, which stocks in the table sold at the highest
price? At the lowest price?
2. How many shares of EEE were traded?
3. Which stocks have the highest and lowest shares were traded for the
day?
In the previous activity, first, you need to analyze the information included in the
stock table. To find the highest price for the past 52 weeks, you need to look under
the heading 52-WK-HIGH. The price is given as 74.30. Thus, the highest selling price
of the stock in the past 52 weeks was ₱74.30.
To find the lowest price for the past 52 weeks, you need to look under the heading
52-WK-LOW. The price is given as 68. Thus, the lowest selling price for a share of
AAA stock for the past 52 weeks was ₱68.00. To find the highest and lowest prices
for the shares yesterday, look under the heading HIGH and LOW we have the
numbers 70 and 69.50 respectively. Thus, the highest and lowest prices for AAA
shares were ₱70. and ₱69.50. Looking at the heading DIV, we have the entry 0.70.
Thus, the dividend per share last year was 0.70.
Going back to the table, to find the closing price in the last trading day look under
the heading CLOSE, the number given is 70.25. Thus, when the stock exchange
closed in the last trading, the price was ₱70.25. The closing price the day before the
last trading day is the difference between CLOSE and NETCHG, thus we have ₱70.25
– ₱0.10 = ₱70.15.
To answer the following questions in letter B you need to compare all the information
or data in the table. During the past 52 weeks, the BBB stock sold at the highest
price ₱115 and EEE stock sold at the lowest price ₱31.60. To find the total shares
were traded of EEE look under the heading VOLUME, referring to sales volume and
the number given was 1500. In this case stock EEE sold 1,500 shares of 100 which
is equal to 150,000 shares. The BBB stock has the highest shares were traded with
10,700 shares of 100 which is equal to 1,070,000 and CCC stock was the lowest
shares were traded with 500 shares of 100 which is equal to 50,000.
For better understanding, study the definition of the related terms involving market
indices for stocks and bonds and analyze the given examples.
The measure of a portion of the stock market is called the stock market index.
The up and down movement in percent change over time can indicate how the index
is performing.
The stock index can be a standard by which investors can compare the performance
of their stocks. A financial institution may want to compare its performance with
those others. This can be done by comparing it with the “financials” index.
Chg – change of the index value from the previous trading day (the difference
between the value today and value yesterday)
It is necessary to know and how to read the data or information in stocks and it
can be presented in the table. (values are hypothetical)
52- 52-
VOL NET
WK- WK- STOCK HIGH LOW DIV CLOSE
(100s) CHG
HIGH LOW
74.30 68.00 AAA 70.00 69.50 .70 9050 70.25 0.10
115.00 82.00 BBB 113.9 112.30 .30 10700 113.30 -0.20
88.00 84.50 CCC 87.55 83.50 .50 500 87.50 0.20
57.19 35.80 DDD 56.00 54.20 .28 10200 56.20 -0.15
31.60 23.25 EEE 30.00 27.80 1.70 1500 30.00 0.30
We will use the headings and the first row of the table to explain each column
and this serves as an example.
STOCK • The heading STOCK is a three-letter symbol the company using for
AAA trading. Example AAA
52- • The heading 52–WK–HIGH is the highest selling price of the stock
WK- in the past 52 weeks. The highest price at which AAA stock traded
HIGH during the past 52 weeks was ₱74.30.
74.3
52-
• The heading 52–WK–LOW is the lowest selling price of the stock in
WK-
the past 52 weeks. The lowest price at which AAA stock traded
LOW
during the past 52 weeks was ₱68
68
HIGH • The heading HIGH is the highest selling price of the stock on the
70 last trading day. The selling price of AAA stock in the last trading
day was ₱70.
LOW • The heading LOW is the lowest selling price of the stock on the last
69.5 trading day. The selling price of AAA stock in the last trading day
was ₱69.50.
DIV • The heading DIV is the dividend per share last year. The dividend
.70 per share last year of AAA stock was 0.70
NET • The heading NETCHG is the net change between the last two trading
CHG days. In the case AA, the net change is 0.10. The closing price the
0.10 day before the last trading day is ₱70.25 – 0.10 = ₱70.15
To sell his stock is another way of a shareholder to earn an income. A broker may be
used to buy or sell stocks. Nowadays, most of the transactions are done by making
a phone call to a registered broker or by logging on to a reputable online platform.
Those with accounts in online trading platforms may often encounter a table such
as the following.
Bid Ask/Offer
Size Price Price Size
122 354,100 21.60 21.80 20,000 1
9 81,700 21.55 21.90 183,500 4
42 456,500 21.50 22.15 5,100 1
2 12,500 21.45 22.25 11,800 4
9 14,200 21.40 22.30 23,400 6
Bid Size – the number of individual buy orders and the total number of shares they
wish to buy.
Bid Price – the price that buyers are willing to pay for the stock
Ask Price - the price that the sellers of the stock are willing to sell the stock
Ask Size – how many individual sell orders have been placed in the online platform
and the total number of shares these sellers wish to sell.
Look at the table above, the first row under Bid means that there are a total of 122
traders who wish to buy a total of 354,100 shares at ₱21.60 per share. On the other
hand, the first row under Ask means that just one trader is willing to sell his/her
20,000 shares at a price of ₱21.80 per share.
The main platform for bonds or fixed-income securities in the Philippines is the
Philippine Dealing and Exchange Corporation (or PDEx). Unlike stock indices that
are associated with virtually every stock market in the world, bond market indices
are far less common. Other than certain regional bond indices that have sub-indices
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
that may be used as benchmarks for other financial instruments.
Government bonds are sold out to banks and other brokers and dealers every
Monday by Bureau of Treasury. It depends on their terms (or tenors), these bonds
are also called treasury bills (t – bills), treasury notes (t-notes), or treasury bonds (t-
bonds). On the day right after the auction, the news agencies are normally reported
the resulting coupon rates and the total amount sold for these bonds. Since these
bond transactions involve large amounts, these bonds are usually limited to banks,
insurance firms, and other financial institutions. The banks may then resell these
bonds to their investors.
Although the coupon rate for bonds is fixed, bond prices fluctuate because they are
traded among investors in what is called the secondary market. These prices are
determined by supply and demand, the prevailing interest rates, as well as other
market forces. As the price of the bond may increase or decrease, some investors
may choose to sell back to banks the bonds they acquired before their maturity to
cash in their gains even before maturity.
Despite the fact that bond investing is considered safer than stock investing, there
is still some risk involved. The most extreme scenario is a default by the issuer. In
this case, the investor can lose not only the coupons but even the money invested in
Example 1
Consider the stock for FFF and GGG to answer the questions that follow.
52- 52-
YLD VOL NET
WK- WK- STOCK HIGH LOW DIV CLOSE
% (100s) CHG
HIGH LOW
75 69 FFF 71.00 67.90 3.50 2.5 190 72.30 0.30
118 100 GGG 115.20 114.30 1.40 3.1 10500 115.00 -0.10
1. Give the highest and lowest prices for the past 52 weeks.
2. Give the highest and lowest prices shares yesterday.
3. What was the dividend per share last year?
4. What was the annual percentage yield last year?
5. What was the closing price in the last trading day?
6. What was the closing price the day before the last trading day?
7. During the past 52 weeks, which stocks in the table sold at the highest
price? At the lowest price?
8. How many shares of GGG were traded?
9. Which stocks have the lowest shares were traded for the day?
Answers:
For Stock FFF:
1. 52-WK-HIGH = ₱75
52-WK-HIGH = ₱69
2. Highest Price = ₱71
Lowest Price = ₱67.90
3. Dividend per share = ₱3.50
4. YLD% = 2.5%
5. Closing Price = ₱72.30
6. Closing Price (the day before the last trading day) = ₱72.30 - ₱0.30 = ₱72
1. 52-WK-HIGH = ₱118
52-WK-HIGH = ₱100
2. Highest Price = ₱115.20
Lowest Price = ₱114.30
3. Dividend per share = ₱1.40
4. YLD% = 3.1%
5. Closing Price = ₱115.00
6. Closing Price (the day before the last trading day) = ₱115.00 + ₱0.10 =
₱115.10
7. During the past 52 weeks, the GGG stock sold at the highest price ₱118 and
FFF stock sold at the lowest price ₱75.
8. The total shares were traded of look under the heading volume, referring to
sales volume and the number given was 10,500. In this case stock GGG sold
10,500 shares of 100 which is equal to 1,050,000 shares.
9. The FFF stock has the lowest shares were traded with 190 shares of 100 which
is equal to 19,000 shares.
Example 2
Rachel owns 2,000 shares of a company A at ₱980 per share. She also owns
15 000 shares for company B at ₱250 per share. In which company is the total value
of her share greater? Explain how you know which is greater.
Company A
No. of shares x Selling Price = Total Price
2,000 x ₱980 = ₱1,960,000
Company B
Therefore, the greater value of her share is in company B with 15,000 at ₱250
per share, its total value is ₱3,750,000. To find which company will give a greater
value of share multiply the number of shares to its selling price then compare the
final answer.
Activity 1.1
A. Consider the stock for the first company to answer the questions that follow.
52-
52-WK- STOC VOL YLD NET
WK- HIGH LOW DIV CLOSE
HIGH K (100s) % CHG
LOW
74.30 68.00 HHH 70.00 69.50 .70 9050 2.6 70.25 0.10
115.00 82.00 III 113.90 112.30 .30 10700 2.5 113.30 -0.20
88.00 84.50 JJJ 87.55 83.50 .50 500 3.1 87.50 0.20
57.19 35.80 KKK 56.00 54.20 .28 10200 4.2 56.20 -0.15
31.60 23.25 LLL 30.00 27.80 1.70 1500 2.0 30.00 0.30
1. Give the highest and lowest prices for the past 52 weeks.
6. What was the closing price the day before the last trading day?
7. During the past 52 weeks, which stocks in the table sold at the highest
9. Which stocks have the lowest shares were traded for the day?
10. Which stocks have the highest shares were traded for the day?
True or False: Read each statement below carefully. Place a T on the line if you
think a statement is TRUE. Place an F on the line if you think the statement is
FALSE.
_________3. The up and down movement in percent change over time can
_________4. Bid Size is the price that buyers are not willing to pay for the stock.
_________5. Bid size is the number of individuals who buy orders and the total
_________6. Buying and selling stocks can be done by making phone calls to a
registered broker or by logging on to a reputable online trading
platform.
_________8. Stock indices are far less common than bond market indices.
Activity 1.3
Solve the following problems.
1. Nicco owns 5,000 shares of a company at ₱780 per share. He also owns
25,000 shares for another company at ₱260 per share. In which company is
the total value of her share greater? Explain how you know which is greater.
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
2. On July 1, 2019, Aldrin bought 400 shares of ABC stocks at ₱450 per share.
He sold half of his shares on August 3, 2019, for ₱470. How much money did
he gain or lose on the investment?
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
A. Please read the sentences carefully and fill in the missing word/s by writing your
answer on the space provided for.
3. The highest selling price of the stock in the past 52 weeks is represented as
4. The highest selling price of the stock in the last trading day weeks is
6. _________________ is the price that the buyers are willing to pay for the stock.
7. _________________ is the price that the sellers of the stock are willing to sell the
stocks.
8. __________________ tells how many individual sell orders have been placed in
the online platform and the total number of shares these sellers wish to sell.
B. If you know the number of shares you bought and the price per share, how can
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
Score Criteria
Highly The output demonstrates a complete understanding of interpreting
Proficient a stock table. The data in each column on the table was discussed
(90-100%) with complete, accurate, and clear explanations. It is also error-
free, without ambiguity, and grammatically correct.
Proficient The output demonstrates a considerable understanding of
(80-89%) interpreting a stock table. The data in each column on the table
was discussed with complete explanations. There are 1 to 2
grammatical errors.
Developing The output demonstrates some understanding of interpreting a
(70-79%) stock table. The data in each column on the table was discussed
with minimal explanations. There are more than 2 to 5
grammatical errors.
Beginning The output demonstrates a limited understanding of interpreting a
(60-69%) stock table. The data in each column on the table was not
discussed clearly. There are more than 5 grammatical errors.
Assessment
Choose the letter of the best answer. Write the chosen letter on a separate sheet of
paper.
2. What is the lowest price for the past 52 weeks of stock RST?
a. ₱62.50
b. ₱70.50
c. ₱85
d. ₱92.50
3. During the past 52 weeks, which stocks in the table sold at the highest
price?
a. RST
b. XYZ
c. OPQ
d. LMN
4. What was the closing price the day before the last trading day of stock XYZ?
a. ₱87.60
b. ₱87
c. ₱78.10
d. ₱78.50
5. During the past 52 weeks, which stocks in the table sold at the lowest price?
a. LMN
b. OPQ
c. RST
d. XYZ
7. Which stock has the lowest shares were traded for the day?
a. XYZ
b. LMN
c. OPQ
d. RST
8. What is the net change between the two last trading days of stock XYZ?
a. −0.20
b. 0.10
c. 0.30
d. 0.40
Bid Ask/Offer
Size Price Price Size
360 364,200 23.6000 23.8000 22,000 2
11 61,600 23.5500 23.9000 188,600 5
56 537,500 23.5000 23.1500 4,100 1
9. What is the total number of trader who wishes to buy a total of 537,500
shares at ₱23.50 per share?
a. 11
b. 56
c. 140
d. 350
10. How many trader/s is willing to sell his/her 22,000 shares for ₱23.80 per
share?
a. 6
b. 5
c. 4
d. 2
11. What is the total number of trader who wishes to buy a total of 61,600
shares at ₱23.55 per share?
a. 11
b. 14
c. 56
d. 360
12. How many trader/s is willing to sell his/her 188,600 shares for ₱23.90 per
share?
a. 1
b. 2
c. 5
d. 11
13. What is the total number of trader who wishes to buy a total of 364,200
shares at ₱23.600 per share?
a. 11
b. 56
c. 140
d. 360
14. It refers to how many individual sell orders have been placed in the online
platform and the total number of shares these sellers wish to sell.
a. ask size
b. bid size
c. ask price
d. bid price
15. It refers to the price that the sellers of the stock are willing to sell the stock.
a. ask size
b. bid size
c. bid price
d. ask price
A. Use the Stocks for the first company to answer the following questions:
1. Give the highest and lowest prices for the past 52 weeks.
5. What was the closing price the day before the last trading day?
6. During the past 52 weeks, which stocks in the table sold at the highest
8. Which stocks have the highest and lowest shares were traded for the
day?
General Mathematics Learner’s Material. First Edition. 2016. pp. 217 - 224
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