1. Florida Stock Market Challenge

2. Importance of Financial Literacy “Improving basic financial education at the elementary and secondary school level is essential to providing a foundation for financial literacy that can help prevent younger people from making poor financial decisions that can take years to overcome.” Alan Greenspan Chairman The Federal Reserve

3. Did You Know? Individually, kids age 5 to 17 spend an average of $3500 to $4000 annually. Collectively, kids age 5 to 17 spend approximately $141 billion annually. Approximately 28% of 12-year-olds do not know that credit cards are a form of borrowing. Only 14.6% of high school seniors who participated in a survey think that stocks would have a higher rate of growth over 18 years than savings accounts, checking accounts, or U.S. Government savings bonds. Almost 40% of 12-year-olds do not know that banks charge interest on loans. The difference between cash, checks, and credit cards cannot be explained by 60% of pre-teens. The median amount of allowance and cash 12 to 16-year-olds get from parents/guardians is $50 per week. Information from www.themint.org. The mint is a collaborative effort between the Northwestern Mutual Foundation and the National Council on Economic Educationwww.themint.org

4. What Is the Florida Stock Market Challenge? Established in 1986 by the Florida Council on Economic Education, the Florida Stock Market Challenge is a motivating approach to learning about the American economy. Allows students to develop and manage a hypothetical $100,000 investment portfolio, as well as compete for the best portfolio performance. Offered to students in grades 4 – 12 as a 12-week simulation each fall and spring (Sept. 1 – Dec. 5 Fall; Jan. 16 – April 27 Spring) Easily integrated into social studies, mathematics, and language art classes.

5. Sunshine State Standards Correlations The Stock Market Challenge is correlated to the standards for language arts, mathematics, and social studies for grades 3 – 12.

6. Statewide Competition Eligibility –Must hold a minimum of three different stocks and/or mutual funds in your portfolio at the end of the simulation. With no more than $25,000 in each stock Ranking Method –Portfolio performance is compared with that of the S&P 500 Index during the same period of time.

7. Student Awards Regional & State –First Place winners will receive certificates, T- shirts, Tote Bag (for Advisor), Medal (for school). –Second and Third Place winners will receive certificates.

8. Frequently Asked Questions I don’t know anything about the stock market. Can I still use the program? My students need to learn the skills tested on the FCAT. Will the program help them learn those skills? My school is on block scheduling. Will the program fit in to my schedule? Where can I find funding to cover team fees?

9. Making Trades Internet Only –www.floridasms.com –Stock transactions receive real-time prices –Mutual funds receive end of day prices –Each team is limited to 200 transactions.

10. Trading Stocks You must trade a minimum of 25 shares per transaction. Stocks under $5 per share cannot be traded. Four methods of trading: –Buy – taking a “long position” with the hope that the stock will increase in price. –Sell – taking the position that the stock will decrease in price. –Short Sell – selling a stock that you don’t actually own with the hope that you can later buy the stock back at a lower price. –Short Cover – buying the stock to pay back what you borrowed.

11. Trading Mutual Funds Students may trade open-end mutual funds, closed-end funds or exchange traded funds. All buy orders must be a minimum of $500. Sell orders for less than $500 is permitted. Mutual funds compute their NAVs (net asset value or price per share) at the end of the day based on the value of the securities in their portfolios. You may not short-sell open-end funds, but may short-sell closed-end which sell like stocks.

12. Volume and Purchase Restrictions Teams may not invest more than 50% of their total equity in any one company. If a stock in a team portfolio increases in value and places the investment beyond 50% of their total equity, they will be able to retain their shares but unable to purchase additional shares of that stock.

13. Commission $25 broker’s fee charged for all transactions

14. Margin Requirements 50% –Buying power is twice the available equity. You can buy and short sell stocks on margin.

15. Dividends & Stock Splits Stock and cash dividends and stock splits are automatically computed into your portfolio.

16. Interest Earned on all positive cash balances –3% credited weekly Charged on all negative cash balances –8% charged weekly

17. Team Activity www.floridasms.com Account Summary Account Holdings Transaction History Gains and Losses Pending Transactions Transaction Notes

18. Special Awards and Prizes Distinguished Advisor Award Scholarship to the New York Stock Exchange Teachers’ Workshop

19. For more information, please visit www.fcee.org