MONEY IN

STOCK
MARKET
WK16-LAS1-BF-II-12
Learning Target(s):
At the end of the lesson, the students should be
able to understand how stock market generates
money.
STOCK PRICES
When a company is doing well, more people want
to buy the stock and its price in the market rises.

When a company is
not doing well, more
people want to sell
the stock and its price
falls.
DIVIDENDS
When a company makes a profit, they typically
pay
the owners of stock a dividend.
 WHAT CAUSES STOCK PRICES TO
CHANGE?
• Supply and Demand
• Earnings and Expectations
• Sentiments and Attitudes
• Economic Indicators
• Follow the Leader (volume)
• Anything 
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part.
HOW THE MARKET SETS PRICES
• The price is set by the buyer willing to pay the
highest price
• The market price will be set by the
buyer who can take best advantage of the
asset
• Superior information about an asset can
increase its value by reducing its risk

46
Learning
Experience
 Knowing the risk and the
opportunity of investing in a
stock market and If I give you
1Million Pesos now, would you
rather invest it or spend it?