MMTI--Lesson-5
WELCOME!
Warm-Up--Stock Market Math
TOTAL RETURN (Review from previous lesson)
You own 300 shares of ABC Corporation stock. You bought them 2 years ago for $17.00 per share. Today, they are worth $29.25 per share. For each of the last 2 years, the company has issued an annual dividend of $1.30/share. If you sold them today, what is your TOTAL RETURN?
CURRENT YIELD
Current yield is defined as the annual dividend of an investment divided by the current market value. (Annual Dividend / Current Market Value = Current Yield)
Example: If your stock pays an annual dividend of $0.70 and is currently selling for $14 a share, what is your current yield?
Answer: $0.70 / $14 = 0.05 (then you have to convert the answer to a percentage)
Final Answer = 5%
NOW YOU TRY CALCULATING CURRENT YIELD
CURRENT YIELD
If your stock pays an annual dividend of $1.50 and is currently selling for $60.00 a share, what is your current yield?
CURRENT YIELD
If your stock pays an annual dividend of $0.60 and is currently selling for $18 a share, what is your current yield?
CURRENT YIELD
If your stock pays an annual dividend of $3.50 and is currently selling for $70 a share, what is your current yield?
Stock Market Project - Section-2 - Overview
Charts - 1-year, 3-year, 5-year
Copy - Paste - Crop - Explain
Explanations - Research using Google and dates of rises or dips. There is almost always a reason that a stock would rise or fall dramatically. Please see the Lumber Liquidators example below:
After looking at this 1-year chart of LL, one might wonder WHY did the company stock fall so sharply in Feb/March of 2015? A simple Google search revealed the following about the company: Missed Estimates and Bad Press is Coming
and Failed to Meet Health and Safety Standards.
When companies have BAD NEWS like this, their stock tends to fall. Look at your stock charts, and see if you can see any sharp rises or declines, then research WHY that may have happened.
Group Trading Time (10 minutes)
Continue Working On STOCK MARKET PROJECT
This project has three sections. Deadline dates for each section are shown below. Do NOT fall behind. Stay on top of your deadlines!!!
Section-1 Deadline = Friday November 2nd, 2018
Section-2 Deadline = Wednesday November 14th, 2018
Section-3 Deadline = Tuesday November 27th, 2018
Share-Outs will take place on November 28th & 29th.
Please refer to the project link above for complete details.