1. Stocks and Dividends
Lesson 7.4

2. Stocks
7.4a

3. 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.

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

5. = Cost of Stock + Commission
You invest bought 200 shares of stock at $ 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,
= $24,467.90

6. = 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,
= $2,167.45

7. Stock Dividends
7.4b

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

9. 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

10. = Ann.Div. per Share ÷ $ per Share
You bought 100 shares of Walgreens stock at $ 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%

11. = Ann.Div. per Share ÷ $ per Share
You bought 200 shares of Blimpie stock at $ 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%

12. 7.4: Stocks and Dividends Questions Summarize your notes Homework
Worksheet