Stock Market Simulation Report

The purpose of participating in the stock market game is to explore the fundamentals of the stock market. It does this by providing a tangible, real-time simulation of the stock market, and how current events affect the DOW. The stock market game also teaches students to make smart decisions and most importantly to be patient.

When investing in a company, the goal is to buy shares at a low price and then sell them at a higher price. Individual stocks may go up or down independent of how “The Market” is doing overall. Stock market indices such as the Dow Jones Average, the NASDAQ, and the Standard and Poors 500 report how “The Market” is doing “on average.” To check

The stock market works by increasing the value of stocks based upon multiple factors. One of the factors is company performance. The better the company is doing the more stocks will increase and vice versa. Another factor is the demand. The more demand the bigger the price and also vice versa. So to maximize the amount of money you get from a stock you need many people buying that stock and having the company do well.

Economist and financial expert, Ashleigh Kroll evaluates the effectiveness of the Australian Stock Exchange Sharemarket Game for high school students today. Does it really provide educational and reliable insight into the financial world?

The stock market is always fluctuating. While watching the stock market for the last three months I have noticed that it’s a continuous guessing game. One day your stock might gain several point then the very next it could drop. Luckily enough my stocks never dropped tremendously, the outcome of my stocks wasn’t as great as I would have hoped but I also didn’t lose any money. Each stock varied a little different than the other.

Politics have a huge effect on the stock market. Political decisions can cause *Black Swan events, these are very rare and should be taken advantage of. For example, the legalization of marijuana has made some stock soar. I’ve seen some go from $0.80 to $13 in a year. These profit margins are insane. *Black Swan events can occur from anything. If you cant find out when they are taking place use a *Stock Screener and look up high volume stocks, then go through the list and see which ones are trading a lot higher than their average trading volume. If you're lucky, you'll be able to buy the stock at the right price before it peaks. DO NOT buy it at a peak. When these *Black Swan events occur smart investors take their profits and the stock

The ultimate goal of the Stock Market Game is to make the most money. It is not easy or it would not exist. So many people have become millionaires from one simple investment that grew over time. Every decision has a consequence, rather it is marvelous or lousy. Here are some tips for helping you become successful in the game.

In the big picture, the stock market is not a game. People both have made millions and lost everything on the stock market. Given this The Stock Market Game is a great simulation to a get a slight feel on how the stock market works. This game can be be something very useful for you if this is a topic the intess you. Depending on how much work you put into your stocks is what determines what your going to get out of this. After completing this simulation I can see that there's definitely potential to learn something for the future; you can use this opportunity, with this simulation, to acquire information that could make your money later in life. To truly accomplish this your will need to put in more work than is required for the class. In class

| Stocks are a liquid asset, easy to buy and sell. High profits it stocks go up

* Stock prices change only when there is new info- cannot be predicted ahead of time

Understanding the stock market is not something people can do. It required deep understanding of both finance and accounting in order to prevent mistakes that cost us our lives. Stock trading is one of the best and fabulous category of financial tool that ever existed for getting rich. Its sounds great to watch your company grow and collect dividend as the money rolls in; however, one mistake might ruin your entire life. Most people do not fully understand how stock market work, therefore, some of them lose money so easy because they either putting all their money in one basket or trust bookers who have lack of Stock’s trading knowledge. I am so happy that I enrolled in Finance 214 course this semester for many reasons. First, before taking Finance course, I had no idea what stock is all about. During the semester we had a simulation stock market game which we had to invest $100,000 dollars wisely over the span of the semester. The primary goal of this simulation was to gain a perfect understanding of personal stock trading and how to invest. A day trading scheme was employed to help students understand as well. At first, I did not understand how to trade and thought since it is not a real money, then I might as well just played. However, one day, I thought of my uncle who had a heart attack in 2008 due to stock market crashed. I asked myself, my uncle put himself at risk when he trusted someone who had no experience in stock trading and gave him huge amount of money that he

Since early October students in the class of Economics have participated in an online stock market game. The website howthemarketworks.com was used throughout this project. The purpose of this game was to present students with an idea on how to invest in stocks. Students were given an account on the website and their beginning balance was one hundred thousand dollars. The assignment was to analyze how well a business has done by looking at their stocks and deciding whether or not to invest in them. Students were not allowed to spend more than twenty thousand dollars on one stock and no less than three dollars, which are the penny stocks. If successful, students final result should have had an increase in their beginning balance; however,

Trading in stocks is somewhat more of a gamble. When one decides to deal in stocks, they are aware of the volatility of stock markets. Stocks prices will go up one instance and spiral down the next. Whatever the case maybe, an investor will either make more money or lose large sums in investments. However, in this regard, let us look at a market whose stocks have gone down. By the time you are done reading this, you will have learned one or two things on how to make money when stocks go down.

The efficient markets hypothesis posits that “security prices fully reflect all available information (Fama, 1991).” In an efficient market, a stock’s price accurately depicts its fundamental value. However, researchers have shown that real markets are actually inefficient, and are hindered by risky arbitrage and irrational investors. Because of market frictions, incomplete information, and systematic biases, stock prices react to changes in uninformed demand in addition to actual fundamental shifts, resulting in sustained and pervasive mispricing. This essay aims to challenge the theory of market efficiency, and in so doing, support the position that stock prices do not always reflect stocks’ fundamental values.

Stock market is the arena where people indulge in buying and selling stocks trading on the exchange, thus creating the dynamics of stock price through demand and supply of the stocks.