The “Stock Market Game” is a game where a team of people are apart of the stock market and are able to invest into companies that they believe will benefit their stock. This game was created for people to understand what actually goes on everyday in the stock market. Our strategy for selecting our portfolio was looking up on Yahoo Finance which stocks were doing good everyday. Once we found a company that was doing good in the stock market over the course of three days we would invest in that company. If a company was doing good one day in the stock market, but bad the next we wouldn’t invest in that certain company. By doing research of companies it helped our stock maintain a balance percentage and a balance of investments. On occasion, if …show more content…
One strategy that my team used during this game was investing in companies that were doing well in the stocks over the course of three days. Another strategy that my team used was checking our portfolio everyday and deciding as a team whether or not to invest in to another company or not. If we didn’t invest into another company we would chaeck our stock the next day and probably invest into another company that we had been checking recently. By using these strategies my team would develop an idea of how well this company does in the stocks. Overall my team just let our portfolio ride through the ups and downs of the stock market instead of participating in short selling and day trading. Once in awhile we would trade a stock for another one and the couple of times that we did so it benefited in the end. The worth of our final portfolio in terms of both dollars and percentage of the original investment is that we ended with $100,015.57 whcih is 4.58% gain from 95,653.73. We ended “The Stock Market Game” in 239th place out of 1288 teams. In our class we ended in 2nd place out of 9 teams that were participating in the …show more content…
I’ve learned that the stock market changes every second of our lives whether we realize this or not it happens. I’ve also learned that although a company may be strong in our society it may not be strong within the stock market. One last thing that I learned by playing in the “Stock Market Game” is that you have to be risky when playing this game. If you don’t take risks during this game then you wont be successful in it. Yes now I do have a better understanding of how the stock market works and what its purposes and functions are. By plaing this game I have gained knowledge how the complexity of the stock market and how it is managed. Questions I still have are “How do people manage this every second of every day?” and “What makes a company plummet in the stocks?” Yes I hope to invest in the stock market with real money in the future. I would only do this if I had enough money to risk investing in the stock market. This form of investment has its benefits and drawbacks. Some benefits of this form of investing are that if you invest wisely in a company you can benefit by gaining money and gaining a reputation within the stock market. Some drawbacks from this form of investment are the risks that can be involved in investing. While taking risks can be an advantage for some, these risks can also damage the portfolio that you create in
This game was an important tool on showing how a business must adapt to new situations and react to market changes. We learned how difficult it is to pick a strategy and implement it into the dynamic market.
There are many different ways to save money and there are different things to save for. A savings plan for an immediate want is apparently different than a savings strategy for retirement. One may choose to select stocks, bonds, or mutual funds for a savings strategy, however, my personal choice is to invest in bonds first, then mutual funds.
Despite having been around for over one hundred years, people began developing poor judgement when it came to investments in the late nineteenth century. Out of desire to participate in the ever growing popularity of the stock market, people took out large amounts of stock on an installment plan, with money they did not have. As Harry J. Carmen and Harold C. Syrett described in their publication of A History of the American People, as investing in stocks increased in popularity, “the exchange became more of a betting ring.” (Document 5) and “security prices were forced up by competitive bidding rather than by any fundamental improvement in American (business).” (Document 5). The stock market became a game, a challenge that was not fully thought through. This lead to certain businesses getting ahead of others, not due to their success, but because of the uneducated support they were getting from those who knew nothing about the businesses they were investing in, trying to get rich quick. Since those who took out stocks on installment could not pay them off, the stock market eventually collapsed all together. On October 29, 1929, the New York Times published an issue with the headline “STOCK PRICES SLUMP $14,000,000,000 IN NATION-WIDE STAMPEDE TO UNLOAD” (Document 3). Leading up to the ultimate crash, people began to see it coming and at the last second
The stock market is a vehicle to invest money. It is where consumers buy and sell fractions of companies, and is referred to as stocks. A proven method to achieve wealth while keeping up with inflation, comprised of publically held companies who offer goods and services that are used by the general public daily. Companies sell stocks to public investors in a free and open market environment on a daily basis, which is an effective strategy to build a sound financial future.
In order to make the most logical and beneficial purchases, it was first important that I fully understood the terminology used within the stock market. Words such as blue chip stock, mutual fund, stock splits, and ticker symbol would all prove incredibly important for me to understand if I was to do well within the game. For example, the first stock I bought, Disney, taught me the definition of a ticker symbol - in Disney’s case, DIS. This enabled me to quickly identify other stocks by their ticker symbols as well, and I soon became familiar with the term. In addition, when I bought Coca-Cola, I soon learned its financial importance as a reliable blue-chip stock, as it and other stocks like it proved profitable for me. My class was also required to buy a mutual fund, and in doing so I learned how exactly a mutual fund differs from a stock, the positives and negatives of buying one, et cetera. In addition, my knowledge of the history that places like the NYSE contains proved incredibly important towards my success within the game. Because I learned about the NYSE’s foundation and the many people who worked to make it what it is today, I was able to fully appreciate the importance of the stock market as I moved through the simulation. This, in turn, helped me take the Stock Market Game seriously and not waste any of my money on stocks that I considered
Johnson, G., Scholes, K., Johnson, G. and Whittington, R. 2011. Exploring strategy. Harlow: Financial Times Prentice Hall.
According to the united stat patent office: the idea of Monopoly game has been originated by Elizabeth J. Magie back in 1903 when she registered similar board game which was called the landlord's game (Orbanes, 2006). After that, different kinds of board games has been created.
The prices students buy and sell are the same as companies listed on the ASX. The ASX Share Market Game provides students with a practical way to put their newfound knowledge of the sharemarket to the test. As a result of using the Sharemarket Game students will: develop their knowledge of the sharemarket, learn how to research companies, discover the importance of wise investment decisions and gain a greater knowledge of economic and world events. The ASX Share Market Game provides the closest share trading experience to the real ASX and proves to be the best educational share market
This assignment is concerned with your understanding of the key issues relative to portfolio analysis and investment. In completing this assignment you are to limit your scope to the US stock markets only. Use the Cybrary, the Internet, and course resources to write a 2-page essay which you will use with new clients of your financial planning business which addresses the following issues and/or practices:
We analyzed the market for two weeks to determine when the equity market would turn from a bearish to bullish market. Without a change in the market and a declining bond price, we decided to invest in equities according to our investment strategy, which brought us into the second phase of our portfolio. Therefore, at the beginning of February we bought shares in Sirius, Microsoft, Neon, Washington Mutual, and Nike. As assumed, the equity market continued to plummet decreasing the value of all our stocks except for our Gold Corporation stock.
There is a sense of complexity today that has led many to believe the individual investor has little chance of competing with professional brokers and investment firms. However, Malkiel states this is a major misconception as he explains in his book “A Random Walk Down Wall Street”. What does a random walk mean? The random walk means in terms of the stock market that, “short term changes in stock prices cannot be predicted”. So how does a rational investor determine which stocks to purchase to maximize returns? Chapter 1 begins by defining and determining the difference in investing and speculating. Investing defined by Malkiel is the method of “purchasing assets to gain profit in the form of reasonably predictable income or appreciation over the long term”. Speculating in a sense is predicting, but without sufficient data to support any kind of conclusion. What is investing? Investing in its simplest form is the expectation to receive greater value in the future than you have today by saving income rather than spending. For example a savings account will earn a particular interest rate as will a corporate bond. Investment returns therefore depend on the allocation of funds and future events. Traditionally there have been two approaches used by the investment community to determine asset valuation: “the firm-foundation theory” and the “castle in the air theory”. The firm foundation theory argues that each investment instrument has something called intrinsic value, which can be determined analyzing securities present conditions and future growth. The basis of this theory is to buy securities when they are temporarily undervalued and sell them when they are temporarily overvalued in comparison to there intrinsic value One of the main variables used in this theory is dividend income. A stocks intrinsic value is said to be “equal to the present value of all its future dividends”. This is done using a method called discounting. Another variable to consider is the growth rate of the dividends. The greater the growth rate the more valuable the stock. However it is difficult to determine how long growth rates will last. Other factors are risk and interest rates, which will be discussed later. Warren Buffet, the great investor of our time, used this technique in making his fortune.
I became an enthusiast of finance ever since I was at high school. At the political economy class, my teacher asked us: if you have a million RMB, how would you use it? She then introduced us the concept of investment, and I was intrigued specifically by the stock. For the latter two years of my high school, I have been reading books and articles regarding the stock market in the U.S. and in China. As one of the outstanding students ranked top 1% in College Entrance Exam in Hainan Province, China, I was accepted by the City University of Hong Kong with a full scholarship. With the strong interest in finance, I chose quantitative finance and risk management as my major.
Have you ever invested in the stock market? If so, do you know where your money is really going? The stock market is a risky business and it can make or break people’s lives. The stock market is used daily to keep America on its trembling feet; it’s also being used at this very moment to cheat people out of money for personal gain. This happens every day in the stock market and its evolving rapidly, super computers that can trade faster than a blink of an eye, social media trends that can predict share values, and intricate stock market schemes that are getting harder and harder to find and take down.
Never have I ever climbed a mountain peak. As a child, I imagined myself conducting expeditions in deep-frozen pathways, leading amateur explorers to the top of the world, and instructing rookies in surviving harsh blizzards. Even though slightly altered, my childhood dream has been achieved. I led a team of fellow classmates, in my Strategic Management course, to the success summit of a financial competition. Over the course of a semester, I and my teammates were supposed to create and manage a company of the IT industry, in a computer-simulated environment, along with other four rival teams. I dealt with strategy and financial matters of our virtual enterprise, while my colleagues were working on marketing and manufacturing. During the four months of the exercise, I have experienced finance from various aspects: capital budgeting, through selecting favorable investment for upcoming quarters; debt management, by assessing the necessary amount and efficiency of loans; profitability analysis and dividend policy, which had been used to compile the company’s general performance index. Working in a multinational team, which included an American, a Norwegian and a Moldovan, strengthen my negotiations skills, as well as flexibility and cooperation. But above all, this experience intensified my passion for finance. Of course, a pleasant bonus was the fact that, in the end, our company’s financial performance was six times the performance of second-best team.
Eventually, company stocks would perform as good as the market, better than the market, or worse than the market, and a club would win a game, draw a game, or lose a game.