1. STOCK MARKET GAME

2. GA STANDARDS: MIDDLE SCHOOL  SS6E4. The student will explain personal money management choices in terms of income, spending, credit, saving, and investing.  SS8E5 The student will explain personal money management choices in terms of income, spending, credit, saving, and investing.

3. WHY INVEST?  You can earn income by receiving dividends.  Owning stock can supplement your job income.  Rewards last a lifetime.  Investing provides assets that grow over time.

4. WHY INVEST? Be a part owner of America’s economic growth.  Investing helps companies to grow and provide more jobs and income.  Investing helps create new goods and services for consumers.

5. STOCK MARKET GAME: THE BASICS You can: Buy Stocks, Mutual Funds, Exchange-Traded Funds, Bonds; You can short-sell Stocks. Stock- An ownership share, or shares of ownership, in a corporation.

6. THE DIFFERENT MARKETS New York Stock Exchange The oldest stock exchange in the United States, founded in 1792 and stocks are still traded on the floor. Traditionally for large corporations with large volumes of shares.

7. NASDAQ An electronic marketplace enabling buyers and sellers to get together via computer to trade stocks. Traditionally high-tech firms that are very active. Created in 1971.

8. American Stock Exchange (AMEX) Located in New York, handles about 10% of all securities exchange. Has mostly small- cap stocks, exchange-traded funds and derivatives.

9. RESEARCH: BEFORE YOU BUY AN INDIVIDUAL STOCK, KNOW AS MANY OF THESE AS YOU CAN:  How the company makes money  Projected earnings growth rate and trend  Forward P/E and P/E to growth rate  Its price/book ratio and history  Dividend yield and when dividends are paid  Date and consensus estimate for next quarterly earnings report  Chief competitors and their valuations on P/E and price/book

10. You expect the CDC to announce that Coke causes cancer… …so you wait. Here is a scenario…

11. Instead, the CDC announces that Coke cures cancer! What happens to the price of Coke stock?

12. HOW TO WIN  Select stock kids are familiar with; NKE (Nike)  Buy at $100/share  1000 shares with $100,000  Price rises to $101/share  Account increases by $1,000  Select stock with a lot of volatility; XYZ  Buy on margin  Buy at $10/share  10,000 shares with 100,000  Price rises to $11/share  Account increases by $10,000 How Most Students Play

13. HERE’S HOW TO PLAY THE GAME.  Do... make your first transaction within the first three weeks of the beginning of the game or your team number will be invalidated.  Also, make sure that during ten-week trading session you purchase at least three different stocks and hold each for at least three weeks.

14. NATIONAL RULES  $ 100,000 to Invest for 10 Weeks  NYSE  AMEX  NASDAQ  Must Purchase Minimum of 100 Shares  Minimum Share Price of $5  4 pm Closing Price (not real-time)

15. GEORGIA 3X3X3 RULES  Purchase a stock before end of third week  Must purchase at least three stocks  Must hold three stocks for 3 weeks

16. DON'T... Delay making your first transaction. Also, don't buy only one stock and hold it for the entire ten-week trading session.

17. READY Your team begins with a simulated $100,000 in cash. You can borrow more money, depending on how much equity you have in your account. Each week, the unspent cash in your account earns an annual rate of.75 percent interest. If you spend more than $100,000, your account is charged interest at an annual rate of 7.00 percent.

18. SET You can only trade stocks and mutual funds listed on the American Stock Exchange (AMEX), NASDAQ, and the New York Stock Exchange (NYSE).

19. When you buy or sell a stock, the price is based on the daily closing prices of the market ((AMEX), NASDAQ or(NYSE)) where the stock is traded. You can find the daily closing prices in the next day’s newspaper or look it up on any of the Web sites listed on the Investing Links page.

20. BUY! SELL!  When you buy or sell stock, you have to trade at least 100 shares.

21. NO PENNY STOCKS Penny stocks are stocks that trade below $5 per share. Penny stocks can be bought and sold in large numbers for much less money than you would pay for a higher priced stock. Anyone buying and selling penny stocks in large numbers can cause the price to rise and fall sharply over a short period of time, which puts other people who own them in a very risky situation. Because of this, the Georgia Stock Market Game does not permit trading in penny stocks. All trades in penny stocks will be automatically rejected. However, if you buy a stock that later drops below $5 per share, you can still sell it.

22. FOR A SMALL FEE… A 1 percent transaction fee is charged on each transaction. For example, if you buy 100 shares of a stock at $10 per share, you would pay $1000 for the stock plus the 1 percent fee of $10. When you sell or short sell stock, the SEC requires that you pay a fee of 1/300 of 1 percent, rounded to the nearest penny, in addition to the 1 percent transaction fee.

23. OPEN FOR BUSINESS. You can enter your trades in Georgia’s Stock Market Game 24 hours a day, seven days a week. But your trades will only be executed at 4 p.m. on days when the participating markets are open for business.

24. AFTER THE BELL. Any trade entered after the markets close at 4 p.m. will be priced at the closing price on the next trading day.

25. WHERE’S YOUR PORTFOLIO? Buy first. To see your portfolio, you must make your first transaction. The day after your transaction, your team portfolios and transaction records will be posted. Your team will also be listed in regional rankings.

26. AT THE BELL… All pending transactions can be deleted prior to market close.

27. REMEMBER…GEORGIA 3 X 3 X 3 RULE. Teams must make their first transaction by the end of the third week of the Game, purchase at least 3 different stocks or mutual funds, and hold three different stocks or mutual funds for a minimum of three weeks.

28. HOW TO WIN  Select stock kids are familiar with; NKE (Nike)  Buy at $100/share  1000 shares with $100,000  Price rises to $101/share  Account increases by $1,000  Select stock with a lot of volatility; XYZ  Buy on margin  Buy at $10/share  10,000 shares with 100,000  Price rises to $11/share  Account increases by $10,000 How Most Students Play

29. THE MONEY IS NOW IN YOUR HANDS… What will you do with it?