Embedded Files
Awards
Awards
Cash Prizes will be awarded to the Top Five teams in each region as follows: First, $150; Second, $125; Third, $100; Fourth, $75; Fifth, $50. Top Ten team members in each region receive a drawstring backpack. In addition, participation prizes for students and teachers will be randomly awarded. That’s right, you might win an online door prize whether the portfolio values are up or down!
Stock Market
Stock Market
If you are interested in learning about how you can invest money in a company to make money, you should learn more about the stock market. Be warned, though there is great potential to make money in the stock market, there is also great risk.
Here are some sites that offer free stock market simulations so you can invest with play money while you learn and not lose real money!
Outcomes
Outcomes
Understanding SMG
Understanding SMG
Lesson 1
Lesson 1
Students will be able to:
Understand the relative dollar value of $100,000.
Understand the consensus building process
Cooperatively create rules for successful cooperation and consensus building
Set up and begin to use student SMG Journals.
Vocabulary
Consensus: To reach team agreement on a decision.
Invest: When you invest you become part owner in a company or loan a government agency money with the expectation of earning more money.
The Stock Market Game (SMG): An investment education program with applications for teaching core academic subjects such as math, English Language Arts, economics, social studies, technology, and business.
SMG Journal: Student journal to record decision-making process, summarize important information, and reflect on decision made through the course of the SMG program.
SMG Portfolio: Record of investments and their current value, history of investments with prices of sales, cash on hand, and money borrowed.
Before you invest
Before you invest
Lesson 2
Lesson 2
Students will be able to:
Identify and describe the terms: company, partnership and corporation.
Explain the characteristics, advantages and disadvantages of various types of companies.
Explain how companies are formed, raise capital, and become public.
Describe the benefits of forming a business to sell a product.
Vocabulary
Company: A business or association usually formed to manufacture or supply products or services for profit.
Corporation: A company legally separate from stockholders who own it and the managers who run it.
Entrepreneur: A person who organizes, operates, and assumes the risk for a business venture.
Partnership: A company owned and managed by two or more people who share its profits or losses. A partnership is not separate from its owners, who are liable for the company’s debts.
Private Corporation: A corporation that doesn’t sell shares to the public. You Can’t buy shares of a private company in the stock market.
Public corporation: The stock of a public company is owned and traded by individual and institutional investors. In contrast, the stock is held by company founders, employees, and sometimes venture capitalists.
Sole-proprietorship: A company owned and run by one individual who receives its profits or bears its losses. A proprietorship is not separate from its owner, who is liable for the company debts.
Lesson 3
Lesson 3
Students will be able to:
Define stock, investor, public company, private company, earnings and dividends.
Compare public and private companies.
Calculate gain and loss of sample stock sales.
Write a profile of a public or private company
Vocabulary
Common Stock: Shares represent ownership in a corporation and give the right to vote for the company's board of directors and benefit from its financial success
Dividend: Part of a company’s profits (earnings) that is pays as money or shares to stockholders. In The Stock Market Game™, any dividends received are listed in Transaction History and are included in the portfolio’s total equity.
Earnings: Whatever profits or net income remains after subtracting the company’s expenses from its revenue. A company’s profit.
Initial Public Offering (IPO): An IPO is the first issue of stock for public trading made by a company.
Investor: Someone who purchases stocks, bonds, mutual funds and other financial instruments in hopes the investments will increase in value over time.
Parent Company: A company that owns enough voting stock in another firm to control management and operations.
Preferred Stock: Often pay a fixed dividend on a regular schedule. The prices tend to be less volatile than common stock. Preferred stocks tend to move with changing interest rates. Preferred stocks holders cannot vote on corporate matters.
Portfolio: A collection of investments owned by one individual or organization.
Private Company: A company owned by a person, family, or small group of investors that does not sell stock to the public.
Public Company: A company owned by investors who buy shares of stock usually through a stock exchange.
Risk: The chance of losing all or part of the value of an investment.
Risk Tolerance: An individual investor’s ability to accept loss of some or all of the money they have invested. A person’s risk tolerance is based on a number of factors including age, financial stability, amount of time before the invested funds are needed for other purposes, etc.
Stockholder: Also known as a shareholder is the owner of the stock.
Stock: A security that signifies ownership in a corporation and represents a claim on a part of the corporation’s profit (or loss). Companies usually issue stock to raise money for a variety of reasons, including expanding or modernizing their operations.
Stock Exchange: Place/electronic platform where shares of are bought and sold.
Volume: The number of shares traded in a company's stock. Unusual market activity, either higher or lower than average, is typically the result of some external event.
Lesson 4
Lesson 4
Students will be able to:
Determine how to look up a ticker symbol
Analyze a stock table to understand important elements such as dividends and P/E ratios
Gather data from both print and internet sources
Enter a trade in The Stock Market Game portfolio
Demonstrate the ability to use each of the following terms: share or stock, dividend, P/E ratio, volume or sales, net change
Vocabulary
Dividend: Part of a company’s profits (earnings) that is pays as money or shares to stockholders. In The Stock Market Game™, any dividends received are listed in Transaction History and are included in the portfolio’s total equity.
P/E Ratio: A company’s closing price divided by its latest annual earnings per share. The Price/ Earnings is the relationship between a company’s earnings and its share price. It is calculated by dividing the current price per share by the earnings per share.
Share: A share is a unit of ownership in a corporation or mutual fund.
Stock: A type of security that signifies ownership in a corporation and represents a claim on part of the corporation's profit (or loss). Companies usually issue stock to raise money for a variety of reasons, including expanding or modernizing their operations.
Selecting your investments
Selecting your investments
Lesson 5
Lesson 5
Students will be able to:
Define diversification, risk tolerance, industry, index.
Conduct Internet research on different investment options.
Interpret company and industry charts to determine which investments to make with their SMG teams.
Create a diversified portfolio selecting stocks.
Lesson 6
Lesson 6
Rules
Rules
Portfolio
Portfolio
Each team begins the simulation with $100,000 in cash and may borrow additional funds. How much you may borrow is dependent on the equity in your account. Teams that buy on margin must maintain the Minimum Maintenance requirement. If you dip below this level, you will receive a margin call and must sell off enough investments to meet Minimum Maintenance. If a team still has not met its Minimum Maintenance requirement within seven days, the SMG system will automatically liquidate enough of the portfolio's investments to collect the required amount.
Interest is charged weekly on negative cash balances at an annual rate of 7%, and credited weekly on positive cash balances at an annual rate of 0.75%. Interest is calculated daily, then summed for the week (Saturday - Friday) and posted Saturday (with Friday's date). The daily rate is based on a 365-day year. Daily Interest = Cash x Appropriate Interest Rate (as a decimal) / 365. Bond coupon payments will be posted when due. Bond buyers will also be charged for accrued interest since the last coupon payment. Bond sellers will receive accrued interest since the last coupon payment.
Teams may trade only stocks and mutual funds listed on the NASDAQ Stock Market and the New York Stock Exchange. Teams cannot trade over-the-counter or "pink sheet" stocks since they often price incorrectly. In addition, extremely volatile stocks or stocks that trade infrequently are not permitted and may be liquidated to protect portfolio stability. SMG reserves the right to cancel transactions in these securities as deemed necessary.
Some regions may also trade a pre-determined group of municipal, corporate, and Treasury bonds. Only bonds provided by SMG may be traded. These bonds will be investment grade, with S&P ratings of "BBB" or higher. Teams cannot trade unrated bonds or those with lower than "BBB" ratings, also known as high-yield or "junk" bonds, as they often carry higher default risk.
A record of a team's portfolio and transactions will be available daily. A team will not receive a portfolio nor be listed in regional rankings until its initial transaction is entered successfully. A student can only be assigned to ONE portfolio per game period.
Teams do not have to liquidate their portfolios at the end of the game. Winners will be determined based on either Total Equity or Percent Return Above/Below S&P 500 Growth. (Some states may use additional criteria to determine winners). For more information, please click here.
Transaction
Transaction
The minimum market capitalization for stocks in SMG is $25 million, and SMG does not permit buying stocks or mutual funds or short selling stocks that trade below $3 per share the day before and the day of execution. These low-priced stocks, also known as "penny" stocks, are risky and volatile investments. Sell transactions on long positions and short cover transactions on short positions will be accepted, even if the price is less than $3 per share.
All stock and mutual fund buy orders and stock short sell orders must be for a minimum of 10 shares. Sell orders on existing inventory and short cover orders for less than 10 shares will be permitted. Municipal and corporate bonds can only be traded in $1,000 increments, and Treasury bonds can only be traded in $100 increments. Bonds and mutual funds cannot be sold short.
Stock transactions in Real-Time games are executed at market price at the time of entry, while bond and mutual fund transactions are treated as End-of-Day transactions and are executed at that day's closing price. End-of-Day game transactions are priced at market daily closing prices for all asset types. Participants of End-of Day games may delete pending transactions prior to market close.
SMG is run Monday - Friday with hours of operation from 9:30AM ET - 4PM ET. Teams may trade on any day the participating stock markets are open. Orders may be entered seven days a week during hours the system is available. Stock trades entered after close of market (4PM ET) or on weekends and market holidays will be priced at the next business day's opening price for Real-Time games and at the next business day's closing price for End-of-Day games. Bonds and mutual funds will be priced at the next business day's closing price for both Real-Time and End-of-Day games.
Transactions entered with a limit price will not be held past the initial attempt to price the transaction during market hours. This applies to both Real-Time and End-of-Day games.
Trades can only be processed in whole. There are no partial fills.
A $5 per-trade commission fee is charged on all transactions. An SEC fee is also charged on all sell transactions.
Short positions held in stocks are marked to the market daily and the resulting gain or loss is added or subtracted from Cash Balance. No mark-to-market transactions are posted in Transaction History. (Please note: there is no short-selling allowed in non-margin cash accounts.)
No back posting of trades will be done for trades of securities not contained within the SMG Security Table. Once the missing security has been added, the security can be traded. The same rule applies to trades rejected if they are incorrectly pricing below $3. Once the pricing has been corrected, the security can be traded. There is no post-dating of trades due to the system being unavailable.
Stock and cash dividends and stock splits are automatically computed into portfolios. Every effort is made to simulate as closely to real life as possible a variety of other corporate actions (mergers, acquisitions, spinoffs, etc.), which may include the standard three-day settlement period. In this case, it may be necessary to suspend trading of a given security until the action can be completed. Canadian stocks trading on US exchanges cannot be traded between a split's record date and its payout date. It is the responsibility of teams to check their portfolios for accuracy and notify their Coordinator by email of any problems that are encountered.
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