I.

OBJECTIVES
At the end of the lesson, the students will be able to:
(1) enumerate the definition the stocks and bonds,
(2) differentiate between stock and bond
(3) define the different markets for stocks and bonds and
(4) determine and analyze the different indices for stocks and bond

II. CONTENT
Basic Content of Stocks and Bonds, Market Indices of Stock and Bond

III. LEARNING RESOURCES

Gen Math G 11 Q2 Mod8 Basic-Concepts-of-Stocks-and-Bonds Version 2WO AK

IV. PROCEDURES
Preparation

*The students will be divided into four groups. The activity will be about 4 pics and 1
word, in which they will be guessing a word through their designated four pictures.

stock
price
market
profit

Presentation
*Ask the students based on their knowledge about what comes into their mind when
they encounter the words "stock" and "bond".

*The presentation will follow as:

Lesson 1: Illustrating the Stock and Bond

Stock
Stock is a share of ownership in a business or company.
Some corporations may raise money for their expansion by issuing stocks. Stocks are
shares in the ownership of the company. Owners of stocks may be considered as part
owners
of the company.

Two Types of Stock

Common stock
A class of stock that represents equity ownership in a corporation.
Preferred stock
A type of stock that pays shareholders a specified dividend and has priority over
common stock for receiving dividends.
*Give an example of a stock

Bond
A bond is a debt of the firm. A certificate that proves that a company or corporation
borrowed money from a certain group of individuals or investors for a definite period at a
fixed rate. Owning a bond is just like saving money from a bank in which you will earn
interest from the amount borrowed.

*Give an example of a bond

*Proceed to present the difference between stocks and bonds and the definition of
terms about stocks and bonds. Present the example problem-related to stock and
bonds

Example about stock

Example 1. A certain financial institution declared a ₱30,000,000.00 dividend for the
common stocks. If there are a total of ₱700,000.00 shares of common stock,
how much is the dividend per share?
Solution:
Given: Total Dividend = ₱30,000,000.00
Total Shares = ₱700,000.00
Find: Dividend per Share =?

If P = F, the bond is purchased at par.

If P < F, the bond is purchased at a discount.
If P > F, the bond is purchased at a premium.

𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑 𝑝𝑒𝑟 𝑠ℎ𝑎𝑟𝑒 = 𝑇𝑜𝑡𝑎𝑙 𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑

𝑇𝑜𝑡𝑎𝑙 𝑆ℎ𝑎𝑟𝑒𝑠
=
30,000,000.00
70,000.00
= 42.86
Therefore, the dividend per share is ₱42.86

Example about bonds

Example 2: Ms. Claire Garcia bought fifty ₱1,000.00 ACTS bonds at 103. What is her
total
investment in ACTS bonds?

Solution:
Market Price of 1 bond: 1.03 x ₱1,000 = ₱1, 030.00
Total investment: 1,030 x 50 = ₱51,500.00
Thus, the amount total investment is ₱51,500.00

Lesson 2: Market Indices of Stocks and Bonds

The Stock Market
A Stock Index or Stock Market Index is the measure of the value of a section of the
stock market and is computed from the price of selected stocks. Investors and financial
managers use this to describe the market and compare the return on specific
investments.

Stock Market Table

Stock indices are reported in the business section of magazines or newspapers, as well
as online. Stock table means a table that lists the proportions of the total volume of
wood content of the trees within a stand-by diameter class and is expressed as units
per acre or another unit of area, where the units are, for example, cubic foot volume,
board foot volume, cords, or tons.

BOND MARKET INDICES

A bond index or bond market index is a method of measuring the value of a section of
the bond market. The main platform for bonds or fixed-income securities in the
Philippines is the Philippine Dealing and Exchange Corporation (PDEx).

V. EVALUATION/ASSESSMENT
The students will be again divided into 4 groups that will consist of 9-10 members per
group.
Each group will be asked 12 questions about the lessons being discussed and they will
write and show their answers to the given boards.
The groups will answer the correct letter in each given question after each allotted time.
The students will then be given enough time for the problem-solving question.

1. It is a place where stocks can be bought or sold.

a. Stocks
b. Bond
c. Share
d. Stock Market

2.

3. It is referred to as a share of ownership in a business or company.

a. Stocks
b. Bond
c. Share
d. Stock Market

4. The price that buyers are willing to pay for the stock is called _________.
a. bid index
b. ask price
c. bid price
d. bid size

5. Stocks can be bought or sold at their current price called______.

a. stock market
b. market value
c. ask size
d. stock index

6. It is a method of measuring the value of a section of the

bond market.
a. bond index
b. stock index
c. stock market
d. par value

7. It is the number of individual buy orders and the total number of shares that
wish to buy.
a. bond index
b. stocks
c. bid size
d. bid index

8. It is referred to as the debt of the firm.

a. Stocks
b. Bond
c. Share
d. Stock Market

*Instruct the students to tell whether the following is a characteristic of stock or bond.
9. Investors can earn if the security prices increase, but they can lose money if the
security prices decrease or worse if the company goes bankrupt.
a. stock
b. bond

10. A form of debt financing or raising money by borrowing from investors.

a. stock
b. bond

11. Mr. Vincent Gomez bought sixty ₱1,500.00 ACTS bonds at 103. What is his total
investment in ACTS bonds?
a. ₱109,270.00
b. ₱97,700.00
c. ₱92,200.00
d. ₱92,700.00
12. Mrs. Scarlet owns 65 bonds with a par value of ₱2,000 each and pays 10 %
interest. What annual income does Mrs. Scarlet get from these bonds?
a. ₱10,000.00
b. ₱11,000.00
c. ₱12,000.00
d. ₱13,000.0