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David Faerber, LCEE October 13, 2017

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1 David Faerber, LCEE October 13, 2017
The Stock Market Game David Faerber, LCEE October 13, 2017

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:

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. A variety of additional teaching materials are available for a nominal charge.

7 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 and bonds listed on the New York, American, and NASDAQ stock exchanges. Trading is based on daily closing prices. 

8 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

9 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.

10 SMG Rules Each team begins the simulation with $100,000 in cash and may borrow additional funds. You may trade only stocks 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.

11 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 2% 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 2% of $1000 or $20.

12 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.

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 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?

15 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.

16 Time for a simple simulation
Please refer to Spreadsheet (or handout).

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

18 2017-18 SMG Program Dates Year-long Session:
9/11-4/20 - (registration is on-going throughout the year) Fall 2017 Sessions: 10/2-12/8 10/23-2/9 (Enrichment session - prizes not awarded) Spring 2018 Sessions: 2/5-4/13 3/12-6/1 (Enrichment session - prizes not awarded) 4/16-6/8 (Enrichment session - prizes not awarded) Teacher Prep Sessions: 9/11-9/29 (opportunity to test out the site before using with students) 1/8-1/26

19 Louisiana Council for Economic Education
Website is 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!

20 Contact Information Laura Smith, LCEE President David Faerber, LCEE SMG Coordinator

21 Louisiana Council for Economic Education
LCEE is a affiliated with the Council for Economic Education


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