Discovering Math Behind Investing and Stocks

Content:
1. How this project will help me?
2. Tasks
2.1 Finding how much of a company you own based on how many shares

bought.

2.2 Math behind how fractional shares work

2.3 Finding out if there is a pattern in the statistical movement in general

Stocks and Index funds.

Example: Amazon, Apple, Facebook, S&P500…

2.4 Income plan regarding stable growth with reinvested dividends. (annual

analysis and assuming that the company won’t stop paying dividends)

2.5 Identifying a portion of a recorded statistical growth graph of a stock and

examining how math is used.

2.6 Calculation process of a share regarding a specific company.

2.7 Risk and reward ratio estimates depending on where you invest, annual

analysis. (bond, bank, stock market, real estate, other people etc.)

3. Conclusion regarding what I have learned.

Math Topics: Probability, Functions, percentages, graphing and analyzing

graphs.
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1. How this project will help me?

Math is essential in our daily life, many topics such as

investing and the stock market burry math in their structure, so
how can math be used to have a better understanding of
investing and the stock market?

Investigating and resolving this question will improve how

I perceive investing and use math to:
• foresee increase/decrease in the stock market.
• Calculate my possible profit/loss.
• Invest in a more concerned way.

To sum up, foreshadowing and predict my balance will be

inevitable.
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 2.1
Finding how much of a company you own based on how
many shares bought.

Share is a fraction of a company which an individual can own

If there are 100k shares 1

sahre would be worth $5

If someone was to buy a share, which is If I were to buy a share from Apple (1.3 Trillion Dollar Com-
worth $5 that person would own: pany) and it’s share being worth around $230 at the time.
(March 2020) I would own:
5/2000000
Equal to 230/ 1.3 Trillion = 1.76923077e-8/100
%0,00025 of a company
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