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Global Economics and Personal Finance Stock Market Game

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Global Economics and Personal Finance Stock Market Game David Faerber, LCEE Financial Education Boot Camp October 3, 2014 – PowerPoint PPT presentation

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Title: Global Economics and Personal Finance Stock Market Game


1
Global Economics and Personal Finance Stock
Market Game
  • David Faerber, LCEE
  • Financial Education Boot Camp
  • October 3, 2014

2
WHAT IS THE STOCK MARKET GAME?
  • The Stock Market Game Program is a fun, no-risk
    way to learn about the American economy and how
    to invest in the stock market. Offered in all 50
    states, the game is operated by the Foundation
    for Investor Education. The Louisiana Council for
    Economic Education sponsors the game in
    Louisiana.

3
WHO CAN PLAY THE STOCK MARKET GAME?
  • Students from grades 4 through 12, college
    students, and adults can play, although prizes
    are awarded only to student teams.
  • The Stock Market Game is played on the Internet,
    where links to many other sites and educational
    materials are available to aid in researching
    stocks. The Internet address is
    http//www.smgww.org

4
WHY PLAY THE STOCK MARKET GAME?
  • Used to teach a wide variety of topics in the
    classroom, the SMG improves study skills by
    placing students in decision-making roles that
    require research, analysis, and judgment. The
    team approach promotes interpersonal skills and
    cooperation in developing the team's investing
    strategy.

5
WHAT IS THE GOAL OF THE STOCK MARKET GAME?
  • The Stock Market Game is designed to encourage
    awareness of the world of business and finance.
    The ultimate goal of the SMG is to provide
    investors and future investors with the knowledge
    that will allow them to participate effectively
    in the American economic system by being better
    equipped to make informed investment decisions.

6
DO I NEED TO KNOW ABOUT INVESTING TO PLAY?
  • No prior knowledge of the stock market is
    required.
  • Everything you need to know will be provided on
    line, in the materials that are distributed, and
    in free regional training workshops.
  • If you run into problems, you can email LCEE and
    we can try to help you solve it.

7
Study finds playing SMG yields gains in student
Achievement
  • Scores increased in Math and Financial Literacy
  • Student achievement increased regardless of how
    teachers implemented the SMG.
  • Students are not the only ones who benefit from
    exposure to SMG. Teachers report the program
    influenced their financial practices.

8
HOW DOES THE STOCK MARKET GAME WORK?
  • For a ten-week period each fall and spring, teams
    of 1-5 players research stock selections and
    invest a hypothetical 100,000 in stocks, mutual
    funds, and bonds listed on the New York,
    American, and NASDAQ stock exchanges.
  • Trading is based on daily closing prices. 

9
HOW DOES THE STOCK MARKET GAME WORK?
  • The nation's most realistic computer simulation,
    The Stock Market Game allows teams to
  • Buy and sell stocks
  • Buy on margin
  • Sell short
  • Place price limits on transactions
  • Receive dividends

10
Short sell? Dividends?
  • How does short selling work?
  • What are dividends?

11
SMG Ticker Symbols
  • What is a ticker symbol?
  • What companys ticker symbol is SBUX?
  • What is Harley Davidsons ticker symbol?
  • Information can be found at finance.yahoo.com
    (and lots of other places too)

12
Heres the Global Part of the Presentation.
  • Have you heard of BABA?
  • This is the ticker symbol for the Alibaba Group.
  • They have been called Chinas Amazon

13
SMG Lessons
  • The In the Classroom section of the Teacher
    Support Center is where you access classroom
    lessons and teaching materials. Lessons and
    teaching materials are organized into four SMG
    units

14
Math Behind the Market
  • Beginner, Intermediate and Advanced levels
  • Activities correlated to the National Council of
    Teachers of Mathematics (NCTM) Standards and
    Principles for elementary, middle and high school
    mathematics

15
Strands included in lessons
  • Thinking Algebraically
  • Interpreting Statistics
  • Communicating Quantitative Information
  • Tackling Complex Problems

16
Learning From the Market
  • What is a Stock?
  • What are Markets?
  • Getting Fancy The Bulls, the Bears and the Pigs
  • Are Stocks Only for the Wealthy?

17
What is a Company?
  • Lessons on-line for teachers using the Stock
    Market Game
  • Search by unit/topic
  • 1-Before You Invest, 2-Selecting Your Investment,
    3-Tracking Your Investment, 4-At the End of the
    Trading Session
  • Teachers can search buy grade, mastery level,
    subject and topic.

18
How does SMG work?
  • Each team begins the simulation with 100,000 in
    cash and may borrow additional funds.
  • Teams trade stocks, bonds and mutual funds listed
    on the American Stock Exchange, Nasdaq Stock
    Market and the New York Stock Exchange that have
    traded within the last 7 days.

19
SMG Rules (Complete rules on available on web
site)
  • All buy orders must be a minimum of 10 shares.
    Sell orders for less than 10 shares will be
    permitted.
  • SMG does not permit buying stocks or mutual funds
    that trade below 3 per share. Low priced stocks,
    known as penny stocks, are very risky and
    volatile investments.

20
More Key SMG Rules
  • Trades can only be processed in whole and will be
    rejected if sufficient buying power does not
    exist to execute the entire order.
  • A 1 broker's fee is charged for all
    transactions. For example, if you buy 100 shares
    of a stock at 10 per share, you must pay the 1
    of 1000 or 10. On Sell or Short sell
    transactions an SEC fee of 5.60 per million
    gross rounded to the nearest penny is also
    charged.

21
SMG Rules
  • Teams may trade on any day the participating
    stock markets are open. Orders may be entered 7
    days a week during hours the system is available.
  • Teams do not have to liquidate their portfolios
    at the end of the game. Winners will be
    determined on the basis of value of the
    portfolio.

22
What stock do I buy?
  • Several TV shows are dedicated to stock picking
    (Jim Cramers Mad Money, Cashin In)
  • Web sites (Market Watch, Motley Fool)

23
How do I play SMG?
  • Register at www.smgww.org
  • Receive IDs and passwords via email
  • SMG is an on-line simulation
  • Give students the rules of the game (worksheet)

24
Upcoming Game Dates
  • Year long Game Sept 22, 2014 May 8, 2015
  • Fall Game October 6 December 12
  • Spring Game March 2, 2015 May 8, 2015

25
Louisiana Council for Economic Education
  • Website is www.lcee.org
  • Our Mission is to help Louisiana's K-12 students
    develop economic literacy as a critical component
    in their lives as consumers, savers, investors,
    members of the workforce, responsible citizens,
    and effective participants in the Louisiana and
    global economies.
  • Like us on FACEBOOK!

26
Contact Information
  • Laura Smith, LCEE President lauragsmith1_at_bellsouth
    .net

David Faerber, LCEE SMG Coordinator
Davidfaerber_at_att.net
27
Louisiana Council for Economic Education
  • LCEE is a affiliated with the Council for
    Economic Education
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