Stock Market Simulation



Stock Market Simulation

In this simulation you will take part in stock trading. The stocks being offered are from real companies that existed in the 1920’s.

Goal: Your goal is to make as much money as you can by working with your team to buy and sell stocks on the stock market.

Materials: $200 to spend on stocks, stock cards, and Net Worth Worksheet, Closed Sign

Game play:

➢ The class will be divided into teams of 5.

➢ A banker will be appointed and each team will receive materials.

➢ As a team, look at the overhead and determine what stocks you would like to purchase.

➢ You must spend at least ½ of your money in the opening round.

➢ Once your team has decided what stocks to buy, give the banker the amount for however many stocks you want to purchase and the banker will give you a stock card. If you buy 10 stocks you will receive 10 stock cards.

➢ Please be kind to your banker and don’t overwhelm them. Complete one transaction before you try to start another. If you are unkind to your banker, the teacher has the authority to close the bank early.

➢ After you have bought all the stocks you want, the team needs to fill out the stock sheet. Have the Banker hold up your teams closed sign once both tasks are completed.

➢ Once all the banks are closed, the next round will begin. As a team you need to determine if you would like to buy more stocks or sell any of the stocks you already have. As before, once the team has made its choices the bank will close.

➢ The game will continue like this until the end of the 5th round; at which point, all stocks must be sold back to the bank.

➢ The team with the most money wins.

Stocks Available-

Allied Chemical- Petrol chemical plant.

American And Foreign Power- formed with the idea of pooling together with foreign powers to create electrochemical fuel.

A.T &T- Telephone and telegraph company with the goal to get a phone in every house. Its value had steadily increased over 14 years.

Auburn Auto- Competed with Ford motors, until Ford bought it in 1924. This means, now you own Ford stock.

General Electric- New Company with a goal to bring electricity to every home by creating dams and hydroelectric power.

Montgomery Ward- New catalog company that competed with Sears.

US Radio- Popular novelty item captured Americans spirit. Both the lower and middle class own them.

US Steel- Produced the most steel in the world during the war. Stocks doubled in 4 years.

Team Members: __________________________________________________________________________

Stock Market Simulation Tally sheet

Directions: Every time you buy or sell a stock, it must be reflected on this sheet.

➢ What round are you buying or selling a stock?

➢ What company or companies are you buying or selling?

➢ How many shares are you buying or selling?

➢ What is the price of each share?

➢ Multiply the number of shares times the share price.

➢ Once you sell the stocks, fill the sale price per stock and then write in the total profit or loss.

|Round |Company |# Of Shares |Buying price |Total Purchase Price |Round Sold |Sale Price |Profit or loss |

|Ex. 1 |Smith’s books |2 |$10 |$20 |2 |$50 each |+80 made |

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*IF you buy stocks from multiple companies in the same round, you will have a separate line for each company.

Stock Market Evaluation

1. What was this simulation designed to teach you?

List 2 items that you learned.

2. Describe two ways the fall of the stock market would affect the economy at the time?

3. Was the simulation an effective tool in understanding how the stock market works? Explain.

4. Explain one item that could be improved about the simulation.

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