General SENIOR

HIGH
Mathematics SCHOOL

Module
Stocks and Bonds 9
Quarter 4
General Mathematics
Quarter 4 – Module 9: Stocks and Bonds
First Edition, 2020

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Published by the Department of Education Division of Pasig City

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Writer: Jan Rhesa V. Capilitan
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Management Team: Ma. Evalou Concepcion A. Agustin
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General SENIOR
HIGH

Mathematics SCHOOL

Module

9
Quarter 4

Stocks and Bonds

Introductory Message

For the facilitator:

Welcome to the General Mathematics for Senior High School Module on Stocks and
Bonds !

This module was collaboratively designed, developed and reviewed by educators from
Schools Division Office of Pasig City headed by its Officer-In-Charge Schools Division
Superintendent, Ma. Evalou Concepcion A. Agustin in partnership with the Local
Government of Pasig through its mayor, Honorable Victor Ma. Regis N. Sotto.
The writers utilized the standards set by the K to 12 Curriculum using the Most
Essential Learning Competencies (MELC) while overcoming their personal, social,
and economic constraints in schooling.

This learning material hopes to engage the learners into guided and independent
learning activities at their own pace and time. Further, this also aims to help learners
acquire the needed 21st century skills especially the 5 Cs namely: Communication,
Collaboration, Creativity, Critical Thinking and Character while taking into
consideration their needs and circumstances.

In addition to the material in the main text, you will also see this box in the body of
the module:

Notes to the Teacher

This contains helpful tips or strategies that
will help you in guiding the learners.

As a facilitator you are expected to orient the learners on how to use this module.
You also need to keep track of the learners' progress while allowing them to manage
their own learning. Moreover, you are expected to encourage and assist the learners
as they do the tasks included in the module.
For the learner:

Welcome to the General Mathematics Module on Stocks and Bonds!

The hand is one of the most symbolized part of the human body. It is often used to
depict skill, action and purpose. Through our hands we may learn, create and
accomplish. Hence, the hand in this learning resource signifies that you as a learner
is capable and empowered to successfully achieve the relevant competencies and
skills at your own pace and time. Your academic success lies in your own hands!

This module was designed to provide you with fun and meaningful opportunities for
guided and independent learning at your own pace and time. You will be enabled to
process the contents of the learning material while being an active learner.

This module has the following parts and corresponding icons:

Expectation - These are what you will be able to know after completing the
lessons in the module

Pre-test - This will measure your prior knowledge and the concepts to be
mastered throughout the lesson.

Recap - This section will measure what learnings and skills that you
understand from the previous lesson.

Lesson- This section will discuss the topic for this module.

Activities - This is a set of activities you will perform.

Wrap Up- This section summarizes the concepts and applications of the
lessons.

Valuing-this part will check the integration of values in the learning

competency.

Post-test - This will measure how much you have learned from the entire
module. Ito po ang parts ng module
 EXPECTATION

At the end of the learning module, you are expected to:

1. describe the different markets for stocks and bonds; and

2. analyze the different market indices for stocks and bonds.

PRETEST

Directions. Read carefully and choose the letter of the correct answer.
1. It is the place where stocks are bought and sold.
a. Stock Market b. Bond Market c. Online Market
2. The government agency that protects and maintains the integrity of the capital
market including the stock market.
a. Philippines Stock Exchange
b. Philippine Dealing and Exchange Corporation
c. Securities and Exchange Commission
For 3-5, refer the table below

52-WK- 52-WK- STOCK OPEN HIGH LOW CLOSE VOLUME

HIGH LOW
70.00 30.25 WDP 66.00 66.00 64.50 65.50 22,110

3. What is the number of shares traded yesterday?

a. Php 66.00 b. Php 70.00 c. 22,100
4. This is the price of share traded when the stock exchange close yesterday.
a. Php 30.25 b. Php 64.50 c. Php 65.50
5. This is the opening price traded yesterday.
a. Php 70.00 b. Php 66.00 c. Php 64.50

RECAP

In your previous lesson, you have learned the definition of stocks and bonds,
the difference between them and how to solve problems involving it. Let us apply
the knowledge you have learned.
FORM ME! Arrange the letters to make a word and give its meaning.
1. SOBND
2. INDEDDIV
3. COSTK
4. NOOCPU
 LESSON

The stock market is a place where stocks are bought and sold. The Philippine
Stock Exchange (PSE) is the national stock exchange of the Philippines that governs
the local stock market.
A stock market index is measure of a portion of the stock market. The main
index for PSE is Philippine Stock Exchange index (PSEi). It is composed of 30
companies, that are carefully selected to represent the general movement of the
market price. The up or down movement in percent change over time can indicate
how the index is performing. The Securities and Exchange Commission (SEC) is the
government agency that protects and maintains the integrity of the capital market
including the stock market.
Sector indices, they are representing a particular sector such financial
institutions, industrial corporations, service corporations, mining or oil and property.
The stock index can be a standard by which investors can compare the performance
of their stocks. The financial institution may want to compare its performance with
those of others by comparing with the “financials” index.

Stock Index Table

Stock indices are reported in the business section of magazines or newspapers
and online. The following table shows how a list of index values is typically presented.

Index Val Chg %Chg

PSEi 5,999.40 54.53 0.92
All Shares 3,586.27 23.99 0.67
Financials 1,172.42 9.28 0.80
Industrial 7,973.54 67.73 0.86
Holding Firms 6,199.82 60.07 0.98
Services 1,479.19 3.60 0.24
Mining and Oil 5,857.92 7.79 0.13
Property 2,800.06 27.55 0.99
https://pse.co.ph/stockMarket/home.html Date: October 2, 2020 12:50 pm
Legend:
Val – value of index
Chg – change of the index value from the previous trading day (i.e., value today –
value yesterday)
%Chg – ratio of Chg to Val (i.e. , Chg divided by Val)

Example 1: Stock Tables

The following table shows how information about stocks can be presented.

52-WK 52-KW
HI LOW STOCK HI LOW VOL CLOSE NETCHG
(100s)
94.00 44.00 AAA 60.00 35.50 2,050 57.29 0.10
88.00 25.00 BBB 45.00 32.70 10,700 45.70 -0.20
Legend:
52-WK HI/LO – highest/lowest selling price of the stock trades during the past
52 weeks
HI/LO – highest/lowest selling price of the stock in the last trading day
STOCK – company name used for trading
VOL(100s) – number of shares (in hundreds) traded in the last trading day.
CLOSE – closing price in the last trading day
NETCHG – net change between the two last trading days

Based on the table above,

1. What is the highest and lowest price for the past 52 weeks of Stock
AAA?
2. What is the highest and lowest price for BBB shares yesterday?
3. What was the price at which AAA shares traded when the stock
exchange closed?
4. What was the closing price the day before the last trading day of Stock
AAA?
Answers:
1. The highest price and lowest price for the past 52 weeks of stock AAA
is Php 94.00 and Php 44.00 respectively.
2. The highest price is Php 45.00 and lowest price is Php 32.70 for BBB
shares yesterday.
3. When the stock exchange close, the price of a share of AAA is Php 57.29.
4. Closing Price (the day before the last trading day) = 57.29 - 0.10= 57.19
Thus, the closing price the day before the last trading day of Stock AAA is
Php 57.19.

Example 2: Buying or Selling Stocks.

There are several ways how to buy and sell stocks. Transactions can be done
personally in PSE, through a phone call to a registered broker o by logging on to an
online trading platform. Those with accounts in online trading platforms may often
encounter a table such as the following:
Bid Ask/Offer
Size Price Price Size
122 354,100 21.60 21.80 20,000 1
9 81,700 21.55 21.90 183,500 4
42 456,500 21.50 22.15 5,100 1
2 12,500 21.45 22.25 11,800 4
9 14,200 21.40 22.30 23,400 6

Legend:
Bid Size – the number of individual buy orders and the total number of shares they
wish to buy
Bid Price – the price whose buyers are willing to pay for the stock
Ask Price – the price that sellers of the stock are willing to sell the stock
Ask Size – how many individual sell orders have been placed in the online platform
and the total number of shares these sellers wish to sell
Based on the table above,
1. How many traders wish to buy a total of 354,100 shares at Php 21.60 per
share?
2. How many trader/s is/are willing to sell his/her 20,000 shares at a price of
Php 21.80 per share?

Answers:
1. There are a total of 122 traders who wish to buy a total of 354,100 shares at
Php 21.60 per share.
2. Only one trader is willing to sell his/her 20,000 shares at a price of Php 21.80
per share.

In the Philippines, the bond market is not yet popular as the stock market.
The Philippines Government, through the Bureau of Treasury (BTr), is the largest
issuer of the Philippine bonds. They offer their flagship products: retail treasury
bonds (RTBs) and regular treasury bonds. Treasury bonds are government securities
which mature beyond one year. The RTBs are part of the government’s savings
mobilization program designed to make securities available to retail investors. The
RTBs are designed to be a safe, high-yielding, and affordable saving instrument. They
are considered risk free because they are direct, unconditional and general obligation
of the Republic of the Philippines.
Government bonds are auctioned out to other banks and other brokers and
dealers. The resulting coupon rates and the total amount sold for these bonds are
usually reported by news agencies on the day right after the auction. Since the bond
transactions involve large amounts, these bonds are usually limited to banks,
insurance firms and other financial institutions. The banks may then re-sell these
bonds to clients.
Although the coupon rate for bonds is fixed, bonds fluctuate because they
traded among investor in what is called the secondary market. The supply and
demand, the prevailing interest rates as well as other market forces determine the
bond price.
Despite the fact that bond investing is considered safer than stock investing,
there is still some rick involved. The most extreme scenario is the fault of the issuer.
The investor can lose not only coupons but even money invested in the bond. Thus,
bond investors should be aware of the financial condition of the issuer of the bond
the prevailing market conditions.

A bond market index is a measure of a portion of the bond market. The

Philippine Dealing and Exchange Corporation (PDEx) is the main platform for bonds
and fixed income securities in the Philippines. Unlike stock indices which are
associated with virtually stock market in the world, bond market indices are far less
common. In fact, other than certain regional bond indices which have sub-indices
covering the Philippines, our bond market does not typically compute a bond market
index. Instead, the market rates produced from the bond market are interest rates
which may be used as bench marks for other financial instruments.
 ACTIVITIES

I. True or False. Write True if the statement is correct and false if statement is
incorrect.
1. The Philippine Stock Exchange (PSE) is the national stock exchange of the
Philippines that governs the local stock market.
2. Stock indices are reported in the business section of magazines or
newspapers and online.
3. The largest issuer of the Philippine bonds is the Bureau of Treasury (BTr)
of the Republic of the Philippines.
4. Investing in bonds involved no risks.
5. Bonds fluctuate because it is traded among investors.

II. Given the table answer the following questions.

52-WK- 52-WK- STOCK OPEN HIGH LOW CLOSE VOLUME
HIGH LOW
21.72 11.96 JRC 12.80 12.80 12.54 12.80 106,200

1. What were the high and low prices for a share for the past 52 weeks?
2. How many shares of the company’s stock were sold yesterday?
3. What were the high and low prices for a share yesterday?
4. Give the price at which a share traded when the stock exchange closed
yesterday.

WRAP–UP

Guide questions:
1. What are the different markets for stocks and bonds?
2. What are the things the investor must consider before investing in stocks or
bonds?
3. Why do you think the government is the most secured issuer of bonds?

VALUING

As a senior high school student, is it important that you invest at an early

age? Why or why not?
Explain this concept in relation to bonds versus a stock investment: “Yields
are always a function of risks”.
 POSTTEST

Identification. Write your answer on the space provided.

____________ 1. It is a place where stocks are bought and sold.
____________ 2. It is composed of 30 companies that are
carefully selected to represent the general movement of the market
price.
____________ 3. It is the main platform for bonds and fixed income securities in the
Philippines.
____________ 4. It is the largest issuer of the Philippine bonds.
5-8. Use the table below to answer the following questions.

MEDIA
52-WK 52-WK- NET
STOCK OPEN HIGH LOW CLOSE VOLUME
HIGH LOW CHANGE
18.50 6.66 ABS-CBN 11.70 11.70 11.36 11.50 49,700 -1.71
8.50 4.28 GMA 7.16 7.19 6.97 7.15 696,900 -0.14
NETWORK
0.73 0.31 MANILA 0.49 0.49 0.44 0.44 90,000 2.33
BULLETIN
23.30 0.00 MANILA 10.26 10.26 10.26 10.26 1,300 -1.35
BROAD-
CASTING
Source: The Philippine Star - Saturday, March 13, 2021

____________ 5. What was the lowest price of the ABS-CBN for the past 52 weeks?
____________ 6. What was the closing price for Manila Broadcasting in the last trading
day?
____________ 7. What was the closing price the day before the last trading day of GMA
network?
____________ 8. Give the number of shares traded yesterday for Manila Broadcasting.

KEY TO CORRECTION

b 5. True 5.
c 4. Php 12.80 4. False 4.
c 3. Php 12.80, Php 12.54 3. True 3.
c 2. 106, 200 2. True 2.
a 1. Php 21.72, Php 11.96 1. True 1.
PRE-TEST ACTIVITY II ACTIVITY I
 https://pse.co.ph/stockMarket/home.html
Mutya Publishing House, Inc. 2016.
Zorilla, Roland S. et al. General Mathematics for Senior High School. Malabon City:
2016.
Versosa, Debbie Marie B. et al. General Mathematics. Pasig City: Lexicon Press Inc.
2017.
Oronce, Orlando A. General Mathematics. Quezon City: Rex Printing Company, Inc.
Philippine Star, p. B2.
Gonzales, Iris (2021, March 13). Stocks rise slightly on late buying spree. The
Mathematics. Brilliant Ceations Publishing, Inc.
Belecina, Alvin B. et al. Senior High Conceptual Math & Beyond General
Inc. 2016.
Albay, Eduard M. et al. General Mathematics. Makati City: Diwa Learning Systems
REFERENCES
POST-TEST
1. Stock Market
2. Philippine Stock Exchange Index (PSEi)
3. Philippine Dealing and Exchange Corporation (PDEx)
4. Philippine Government
5. Php 6.66
6. Php 10.26
7. Php 7.29
8. 1,300 shares
RECAP
1. BOND
Bonds are certificates that promise to pay a fixed rate of interest by a
corporation or government at the end of certain time. It is a certificate of debt
whose repayment has been agreed upon by both the borrower and lender.
2. DIVIDEND
Dividend is the share in the company’s profit.
3. STOCK
Stocks or shares are units of equity or ownership in a company or corporation.
4. COUPON
Coupon is the periodic interest payment that the bondholder receives during
the time between purchase date and maturity date.