Stock Market – Activity 1 Worksheet

Name: Period March 15, 2006

Stock Market – Activity 1 Worksheet Understanding Investments Part 1: 1. Why do you think businesses might need to open their company up to investors?

List two reasons why investments can be a good thing: 2.

4. One share of stock in a company could cost as little as: ---

5. Usually, businesses that are just starting to sell stock in their company, sell their shares for

------money than established companies.

Part 2:

6. Who owns the most stock in the Ice Cream Co.?---

7. Who owns the least stock in the Ice Cream Co? ---

8. What is the price per shares of the Ice Cream Co. stock? ---

9. If you bought 6 shares of stock in the Company, how much money would it cost?

10. If you bought 10 shares of stock in the Company, how much money would it cost?

11. If you bought $40 worth of stock in the Company, how many shares would you own?

12. If you bought $20 worth of stock in the Company, how many shares would you own? Name: Period March 15, 2006

STOCK MARKET – ACTIVITY 2 WORKSHEET

MAKING MONEY ON INVESTMENTS THROUGH DIVIDENDS

1. After a few months of business, the Ice Cream Company has money left over after paying all of their bills. This is called a ______

2. When a company pays stockholders a part of their profit, it is called a ______

3. True or False The Ice Cream Company has 6 investors so the dividend should be split Evenly 6 ways. (erase the wrong answer)

4. Would it be fair to split the dividend evenly 6 ways?

Explain Why or Why Not?

Using the two charts in Activity 2, record what percent of the stock each person owns and how much of the $50.00 they will each receive.

PERSON Percent Invested Amount Received

5. YOU ___ 33% ___ $16.50

6. FRIEND 1 ______

7. FRIEND 2 ______

8. FRIEND 3 ______

9. PARENTS ______

10. SISTER ______Name: Period March 15, 2006

STOCK MARKET - ACTIVITY 3 WORKSHEET MAKING MONEY ON INVESTMENTS BY SELLING STOCK

Originally the Ice Cream Company charged $5.00 per share of stock, Now the Ice Cream Company’s stock is worth $8.00 per share. Use this information to answer the following questions.

1. How much money did your parents originally pay for each share of stock?

2. How much money did they pay totally for all 10 shares of stock?

3. If your parents sell their stock now, what price will they receive for each share of stock?

4. If your parents sell their 10 shares of stock now, what is the total amount of money they will receive from selling them?

5. How much PROFIT (money above what they invested) will your parents make if they sell now?

6. What is the total amount of money YOU originally paid for all your stock?

7. If YOU sell your stock now, what is the total amount of money you will receive?

8. How much PROFIT will you make on your investment if you sell now?

9. If your sister sells her 2 shares of stock, how much profit will she make?

10. This company paid a dividend because it made a __ Name: Period March 15, 2006

STOCK MARKET – ACTIVITY 4 WORKSHEET MAKING AN INVESTMENT

Look at the stock listing below and answer the questions about it. NOTE: This chart is different than the example in the booklet.

52 Weeks Stock Div. YLD P- E Sales High Low Last Net Hi Lo Vol or Change (hds) Closing 65 38 ABC 1.7 0 2.9 9 264 561/8 547/8 55 7/8 - 1/4

1. What is the name of the Company? _

2. How many shares of stock, in hundreds, were bought and sold today? __

3. How much money does an investor earn for every $100 invested? (YLD—remember change to $$$) ___

4. What was the dividend per share paid last year? ___

5. What was the High Price of stock today, in DOLLARS? ___

6. What was the Low Price, in DOLLARS? ___

7. How much did the Last share sold today cost? ___

8. Was the closing price higher or lower than yesterday’s closing price? __

9. What was yesterday’s Closing price, in DOLLARS? (Make Net Chg. Fraction a decimal. Add or subtract this amount to the Last or Close column money amount.)

10. What is the DIFFERENCE in DOLLARS of yesterday’s closing price and today’s closing price? ___