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STOCK MARKET SIMULATION

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Stock Market Simulation (SMS) vs. CCEE Capital Markets Contest (CMC) Stocks vs. Bonds ... Stock Market Basics DVD by www.learningseed.com ... – PowerPoint PPT presentation

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Title: STOCK MARKET SIMULATION


1
  • STOCK MARKET SIMULATION
  • AND
  • CCEE CAPITAL MARKETS CONTEST
  • Greg Fisher, California Academy of Mathematics
    and Science
  • Steve Eggert, Fountain Valley High School

2
Introduction
  • Stock Market Simulation (SMS) vs. CCEE Capital
    Markets Contest (CMC)
  • Stocks vs. Bonds
  • SMS- why participate
  • Highly efficient and cost effective application
    of supply and demand using the stock of a company
    as a proxy for its products.
  • Two levels of demand, supply and price
    equilibrium
  • Investment
  • Product
  • CMC- why participate
  • Application of Macroeconomic theory taught to
    product market intrinsics and theory of the firm.

3
STOCK MARKET SIMULATION UNIT PLANhttp//www.cap
italmarketscontest.blogspot.com/
  • Dont teach personal finance, stock picking or
    financial management teach the application of
    supply and demand.
  • While lessons in personal finance are learned
    throughout this unit, they are secondary to the
    Economic theory reinforced thru student
    participation in the CMC

4
SMS Unit Sequence
  • I. Familiarize yourself with the SMS Home Page
  • II. Become familiar with the SMS trading site
  • a) review SMS Basics http//www.csusms.com/ca_ba
    sics.shtml
  • b) print out the Contest trading rules at
     http//www.csusms.com/ca_rules.shtml
  • c) review the trading tutorials at
    http//www.nationalsms.com/flash/tutorialcontrol.h
    tml
  • d) visit the FAQ's page for additional
    assistance with questions you might have about
    the contest http//www.csusms.com/ca_basics.shtml
  • e) using your dummy account, make a few trades
    (buy and sell) to get the hang of it.

5
Sequence Contd
  • II. Correlate to your text
  • a) Prentice Hall Ch. 11
  • III. Choose main ancillary to supplement text
  • a) The SMS aligns well with several popular
    texts and NCEE personal finance units, which can
    serve as supplements that the typical text does
    not cover in sufficient detail
  • for those who use the Learning, Earning and
    Investing Curriculum (highly recommended), see my
    online unit posting for a sequence of essential
    lessons to cover
  • Financial Fitness for Life
  • If you are using the Learning From the Market
    curriculum, see my online unit posting for a
    sequence of essential lessons to cover

6
Ancillaries Contd
  • b) There are also several supplements you can use
    from the National SMS site
  • http//www.nationalsms.com/lessons.html
  • http//www.nationalsms.com/resources.html
  • Other Understanding Investment and The Stock
    Market by Biedenwig
  • c) Find a good video/DVD
  • Stock Market Basics DVD by www.learningseed.com
  • How Wall Street Works by Nightly Business Report
  • Demystifying The Stock Market

7
Sequence Contd
  • IV. Create your Contest Structure your rules,
    procedures, and how you are going to run the
    contest in your class- feel free to use mine
    http//www.fvhs.com/ecs/dsp.subpage.cfm?uid67id
    2332
  • I include a rubric in my Structure which outlines
    how the students will receive their individual
    grade and how that relates to their team grade.
  • Click here to go to the spreadsheet I use to
    calculate team and individual grades.

8
First Session
  • V) Think about where you want to be in your
    syllabus before you begin
  • Typically Ive just finished elasticity by the
    time trading begins.
  • VI) Begin your SMS Unit with a kick-off
    presentation
  • a) review your rules/procedures, including
    Trading Diary sheets and Essay requirement
  • b) walk students thru CCEE SMS Home Page and
    SMS Home Page (briefly explain the difference)
  • c) walk them thru the Rules
  • d) finish by watching the trading tutorials
  • e) have students choose teams/ collect team
    info.
  • f) make a demo trade using your dummy account

9
Team Registrations
  • VII) Register your students at
  • If participating in SMS, register thru your local
    center for Orange County, register thru CSUF
  • If participating in CMC, register at
  • http//www.ccee.org/ContactUs/Reg_Capital.html

10
On-Going
  • VIII. What to do after the first session
  • Give CMC pre-test (if participating in CMC)
  • Show DVD/Video
  • Pick a team and use them to demo a few trades
  • Start 1st ancillary activity
  • IX. Sessions 3-10
  • Continue with ancillary activities
  • Demo a stock sale
  • Demo how to fill out a trading diary sheet
  • Intersperse discussions on the ethical downsides
    to investing, ie. greed,insider trading, etc.
  • Videos Boiler Room, Wall Street, anything with
    Martha Stewarts face on it.

11
On-Going/What to Do During The Contest
  • X. Thru the course of this unit, schedule weekly
    class sessions in your school's computer lab
    (only internet access is necessary) to ensure
    your students are continually trading.
  • XI. End the unit with the CMC post test.
  • XII. Most importantly, continually use student
    trading activities within the SMS to
  • reinforce the economic way of thinking and
    product market topics that you have covered/are
    covering (Demand, Supply, Equilibrium,
    Elasticity, etc.)
  • Help explain macroeconomic topics that you will
    be introducing as the contest continues.
  • Reach a deeper understanding of the impact of
    economic indicators.

12
CCEE CAPITAL MARKETS CONTEST
  • Tying it All Together With The Essay
  • Tips for Market Watching
  • Stocks and their relationship to inflation

13
Tying it All Together Contd
  • Tips for Market Watching (Contd)
  • What happens to an indicator is not important.
    The relationship between what happens and what
    was expected (the consensus forecast) is what
    moves the markets.
  • The impact of movements in the indicators affects
    the markets differently depending on the stage of
    the business cycle.
  • The impact of movements in the indicators on Wall
    Street (the financial markets) may differ from
    the impact of the movements on Main Street
    (households).

14
Tying it All Together Contd
  • Tips for Market Watching (Contd)
  • Adjustments in certain indicators and other less
    widely understood indicators often have more
    influence that the indicators themselves
  • (rate of change of core PPI CPI, real GDP vs.
    nominal GDP, final revision or real GDP growth,
    changes in non-farm payroll employment vs.
    changes in the employment rate, durable goods
    orders minus transportation and defense).
  • Seasonal adjustments are important.
  • When looking at indicators, relate them to what
    is happening in real world (put into context)
  • Use the Stock Market Simulation as a vehicle for
    engaging students to attain a deeper
    understanding of the macro economy and how its
    conditions affect the aggregate markets.

15
Essay Research Tools
  • I. Macroeconomic Indicator Sites
  • www.ingrimayne.saintjoe.edu/econ/Financial/Overvie
    w8ma.html
  • www.treas.gov/topics/financial-markets/
  • www.gpoaccess.gov/indicators/index.html
  • www.economicindicators.gov/
  • www.economic-indicators.com/
  • www.economy.com/dismal/
  • www.whitehouse.gov/fsbr/esbr.html
  • www.bos.frb.org/economic/neei/neei.htm
  • www.bls.gov/bls/newsrels.htm
  • II. Finance Sites
  • www.fmcenter.org/
  • www.bloomberg.com/
  • www.money.cnn.com/data/markets/index.html
  • www.wsj.com
  • www.online.wsj.com
  • www.cbs.marketwatch.com
  • www.thestreet.com

16
Essay, PowerPoint, Presentation
  • Essay
  • 2 pages maximum
  • categorize indicators as recessionary vs.
    inflationary
  • divide up groups members with specialized roles
  • input from others (volunteers with
    financial/economic/business backgrounds, English
    Economics teachers) to check content, style,
    grammar
  • revisions
  • current to the day of the deadline

17
Essay, PowerPoint, Presentation
  • PowerPoint
  • accompanies oral presentation
  • simple yet engaging slides
  • not too much text
  • creative unique slides that makes group stand
    out
  • easily discernable graphs
  • a slide for every concept and main point
    presented
  • should reflect and mirror the essay

18
Essay, PowerPoint, Presentation
  • Oral Presentation
  • divide up parts of essay/PowerPoint equally among
    group
  • decide who is best suited for introduction, body,
    and conclusion
  • several trial runs in front of audience for
    critique and feedback
  • make current to the day of the presentation
  • emphasize role of teamwork and cooperation
  • delivery addressed (eye contact, projection,
    brevity, etc.)
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