Stocks and Dividends Lesson 7.4.

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Presentation transcript:

Stocks and Dividends Lesson 7.4

Stocks 7.4a

Shares of stocks is another way to invest money Shares of stocks is another way to invest money. Stocks make you part owner of a corporation. You will receive a stock certificate. This is proof of ownership.

Calculate cost of stock… * per Share # of Shares Total paid for stock… Total Paid Cost of Stock = + Commission

= Cost of Stock + Commission You invest bought 200 shares of stock at $122.23 per share. The stockbroker also charged $21.90 commission. Find the cost of stock. Find the amount you paid for the stock. Cost of Stock = # of Shares x Cost per share Cost of Stock = 200(122.23) = $24,446 Amt. Paid = Cost of Stock + Commission Amt. Paid = 24,446+21.90 = $24,467.90

= Cost of Stock + Commission You invest bought 85 shares of stock at $25.32 per share. The stockbroker also charged $15.25 commission. Find the cost of stock. Find the amount you paid for the stock. Cost of Stock = # of Shares x Cost per share Cost of Stock = 85(25.32) = $2,152.20 Amt. Paid = Cost of Stock + Commission Amt. Paid = 2,152.20+15.25 = $2,167.45

Stock Dividends 7.4b

When buying stocks the purchaser receives a dividend, an amount of money earned as a share holder of the company.

Calculate total annual dividend… Annual Dividend per Share Total Annual = Dividend # of Shares * Calculate annual yield of stocks… Annual Dividend per Share Annual Yield = Cost per Share

= Ann.Div. per Share ÷ $ per Share You bought 100 shares of Walgreens stock at $35.23. The company paid annual dividends of $.35 per share Find the total annual dividend. Find the annual yield. Ann. Dividend = Div. per Share x # of Shares Ann. Dividend = 0.35(100) = $35.00 Ann. Yield = Ann.Div. per Share ÷ $ per Share Ann. Yield = 0.35 ÷35.23 = 0.993%

= Ann.Div. per Share ÷ $ per Share You bought 200 shares of Blimpie stock at $35.23. The company paid annual dividends of $.23 per share Find the total annual dividend. Find the annual yield. Ann. Dividend = Div. per Share x # of Shares Ann. Dividend = 0.23(200) = $46.00 Ann. Yield = Ann.Div. per Share ÷ $ per Share Ann. Yield = 0.23 ÷ 35.23 = 0.653%

7.4: Stocks and Dividends Questions Summarize your notes Homework Worksheet