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Comparing stock investments

Updated

Students learn how calculating capital gains and capital losses can help them evaluate stock investments.

Big idea

To measure a stock’s past performance, you’ll need to calculate that investment’s gains and losses.

Essential questions

  • How do you calculate a capital gain or capital loss?
  • How can you use percentages to evaluate a stock’s past performance?

Objectives

  • Calculate capital gains and capital losses for stock transactions in terms of dollars and percentages
  • Understand how these calculations can help evaluate a stock’s past performance

What students will do

  • Calculate capital gains and capital losses in terms of dollars and percentages for specific stock transactions.
  • Determine which stock transaction had the greatest capital gain in terms of dollars.
  • Determine which stock transaction had the greatest gain in terms of percentages.