Live “Stock” Adventure Skills in saving, investing and math for middle school students NOTE TO PRESENTER: Before actually giving this presentation, do a practice run through with a “class” (even just one or two) to refresh!!! It will go much smoother if you do! Handouts: Packet – Powerpoint slide copies, game instructions, copies of exchange tracking sheet and student ledger Extra (loose) copies of the student ledgers for “practice” 4 mini-posters on cardstock (optional) ***1 mini-poster with starting prices listed (requested from NASAA or need to create) Presenter evaluation/information sheet Deck of cards Also bring: calculator! Definitely continue to do the “trial run” of the game. The teachers all commented that they liked this. Kelly May – KY Dept. of Financial Institutions

Live “Stock” Adventure Fun and educational activity Designed for 6th-8th grade students The goals: Raise awareness of the value of saving and investing Practice math skills such as calculating percentages and computing multi-digit numbers Free to download Uses a standard deck of 52 playing cards

Live “Stock” Adventure www.nasaa.org/2068/live-stock-adventure/ Provided Online: Directions Exchange Tracking Sheet Student Ledger Situation Guide Four Price Change Mini-Posters Evaluation Form Materials and instructions for the game are provided online http://www.nasaa.org/2068/live-stock-adventure/ A regular deck of 52 playing cards can be used by referring to the Situation Guide if the Live “Stock” Adventure specific deck is not available Evaluation form - Please share your opinion After playing the Adventure in the classroom, please complete the teacher evaluation form. Your input is important and will help improve the Adventure for future teachers and students.

Beginning the Adventure Post the 4 Mini Posters in Class Distribute Student Ledger Sheets to Class Teacher Keeps Exchange Tracking Sheet* NOTE: Show them all the game “parts” (slides 4-6) before starting the trial run through of the game. Meant to be played in short blocks of time over several weeks May be an ideal activity for Friday afternoons The mini posters will remind students throughout the game how much each stock may increase or decrease as the market changes Students will record their stock values on their student ledger sheet - There are 2 ledger sheets per page (enough for 2 rounds) - Suggested number of rounds is 5 (that number may be modified as needed) Teachers will record ALL stock values on the exchange tracking sheet * = Teacher may choose to have a student act as the “exchange representative.” If so, the exchange representative does NOT complete a student ledger sheet

Student Ledger Sheet The student ledger sheet records the initial stock purchase (or starting price at the beginning of the round) as well as the market impacts for each round Students need only record the changes that pertain to the stocks they own Before each round, students should fill out the top (name, class, date, initial cash – invested amount = cash on hand) as well as items 1-3 at the bottom Initial portfolio value (3) MUST equal $300 Records initial stock purchase and market impacts for each round

Exchange Tracking Sheet The Exchange Tracking Sheet is the master ledger for each round. It is the key. Whoever acts as the “exchange representative” will NOT complete a student ledger sheet. (too confusing to do both) The exchange representative records price changes for all animal stocks for all situations and for all rounds (on the student ledger, students need only record information pertaining to stocks they purchase) The change representative computes and records the new starting price and confirms this for students at the start of each new round. After round 5, the exchange representative computes the ending price This sheet is the master ledger or key Records price changes for all stocks

Beginning the Adventure Each student starts with a “virtual” $300 Chooses which stocks to buy Review purchase price (directions and exchange tracking sheets) Review increase/decrease amounts (directions and mini posters) Discuss risk versus reward and diversification Can reserve some cash Optional: Record an investment goal For this workshop, I will act as the “teacher” and you will be the “students” so you can see how this activity would be used in class You start with $300 in imaginary money You can buy any combination of stocks you choose with your money – can buy “shares” of a variety of animals, or have multiple “shares” of one animal -- Note that the purchase price is different than the increase/decrease amount (Purchase prices found in the directions and on the exchange tracking sheet. Increase/decrease amounts found in the directions and on the mini posters) -- For this game, the only time you purchase is at the start (no sales or purchases during the game) -- A student’s stock value cannot go below zero (won’t have negative numbers, just zero) This is a great time to have a lesson on risk versus reward and diversification You can choose to reserve some cash if you want – but less cash invested results in less market impact for students to experience You may consider having students write down an investment goal – what are they saving for and how much will it cost? At the end you might see who made enough money to meet their goal.

The “Situation” A “situation” represents a day in the market One round = one “week” Draw one card per situation and read it to the class Students record the value changes to the stocks on their Student Ledger Sheet Students only need to record changes for stocks they own Record the change amount (single cost, no matter how many shares you own) A “situation” represents a day in the market One round = one “week” (An average game could be about five rounds, but do as many or few as you like) Draw one card per situation and read it to the class Works great with SmartBoards/Elmos (display the card for the whole class to see) Students record the value changes to the stocks they hold on their Student Ledger Sheet Students only need to record changes for stocks they own Record the change amount (single cost, no matter how many shares you own. Totals will be calculated later) Note that ALL changes are recorded on the exchange tracking sheet, which becomes the master guide for double checking student work.

End of the Round Total the adjustments (column L) Verify the new stock price (column M) with what the exchange representative has recorded (M should = B – L) Compute the ending value (column Q) Complete 4-6 to find out portfolio net worth Optional: Compute percentages Opportunity to discuss how the market impacted each student: How do they feel about the performance of their stocks? Based on the level of risk expected per animal, are they surprised at how well their selections did (or didn’t do)? For those holding cash, how do they feel about the value of cash versus the change possible within the market? Math lesson opportunity in calculating percentages (little # divided by big # = ? (move decimal two places to the right) Also a technology lesson opportunity if you would like to have students represent the numbers in chart form to show their diversification

Completing the Game Rounds 2-5 continue in the same manner Use the New Stock Price from the previous round as the Starting Price at the beginning of each round Optional discussion or writing assignment at conclusion – topics may include: Investment goals, diversification, budgeting, profit versus loss, risk tolerance, etc. Adventure’s impact on students

Other Resources Other Investor Education Resources: The Basics of Saving and Investing 2020 www.investorprotection.org/teach/?fa=basics MoneyTrack Videos http://moneytrack.org/videos-2/top-stories/ FSI: Fraud Scene Investigator Online Game http://www.nasaa.org/2059/fsi/ Stock Market Game/Take Stock in KY www.econ.org/teachers/index.html

KY Department of Financial Institutions Questions? Kelly May KY Department of Financial Institutions kelly.may@ky.gov 800-223-2579 x252 http://kfi.ky.gov/public/Pages/teacher.aspx