Stocks_and_Bonds_Second_QuarterlyGrade11.pptx

Stocks_and_Bonds_Second_QuarterlyGrade11

1. Stocks and Bonds General Mathematics – Grade 11

2. Lesson Objectives After this lesson, you will be able to: • Explain what stocks and bonds are. • Differentiate between stocks and bonds. • Solve simple problems related to profit and interest. • Understand why investing matters.

3. What Are Stocks? Stocks represent ownership in a company. When you buy a stock, you become a part-owner (shareholder). Example: Buying shares of Jollibee or SM means you own a small part of the company.

4. How Stocks Work • Companies sell stocks to raise money. • Investors earn in two ways: - Dividends: a portion of company profit. - Capital Gains: selling the stock at a higher price.

5. What Are Bonds? Bonds are loans you give to companies or the government. They promise to pay you back with interest after a set time. Example: You lend ₱1,000 to the government, and they pay you ₱1,100 after one year.

6. How Bonds Work • You lend money by buying bonds. • The issuer (company/government) pays you interest. • At maturity, you get back your original amount (principal).

7. Stocks vs. Bonds Stocks: • Ownership • Higher risk, higher reward • No fixed return Bonds: • Loan to company/government • Lower risk, lower reward • Fixed interest

8. Certificate No. Corporation Issuing the Certificate. Stock Certificate

9. Why Invest? Investing helps your money grow over time. It’s better than keeping money idle. Start early to gain more through compound growth!

10. Math in Action Example 1: You bought a stock for ₱500 and sold it for ₱650. Profit = ₱650 – ₱500 = ₱150 Example 2: You invest ₱10,000 in bonds with 5% interest. Interest = ₱10,000 × 0.05 = ₱500

11. Math in Action Example : Ana bought 200 shares of a company at ₱50 per share. After a few months, the price increased to ₱65 per share. Question: How much profit did Ana earn from her investment?

12. Math in Action Example : Miguel invested ₱15,000 in ABC Corporation. After one year, his investment value became ₱18,000. Question: What is Miguel’s rate of return?

13. Math in Action Example : Liza bought a government bond worth ₱10,000 with a 6% annual interest rate. Question: How much interest will she earn in 3 years?

14. Math in Action Example : A ₱20,000 corporate bond pays 5% annual interest for 4 years. Question: What is the bond’s maturity value??

15. Let’s Practice! 1. What is the main difference between a stock and a bond? 2. If you earn ₱300 on a ₱6,000 stock investment, what is your profit rate? 3. How much interest will ₱8,000 earn at 4% after 1 year?

16. Summary • Stocks mean ownership; bonds mean lending. • Stocks are riskier but can earn more. • Bonds are safer with fixed interest. • Investing early helps grow your money.

17. Reflection If you had ₱10,000 today, would you invest in stocks or bonds? Why? Think about your goals, risk tolerance, and time frame.