Online Stock Market Game 2000 - 01

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Online Stock Market Game2000 - 01

• Cheryl Ayers
• Lynchburg College
• Center for Economic Education

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The Lynchburg College Center for Economic
Education

• To advance economic literacy by sponsoring
  workshops, lending materials, and giving
  instructional support to teachers.
• Sponsored by the Durell Foundation and the
  Virginia Council on Economic Education.

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The Stock Market Game

• A 10 week stock trading simulation open to school
  age students in grades 4 through 12.
• Sponsored by SIFEE.
• Two Versions
• Internet Game SMGWW
• Paper Game

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Stock Market IQ Quiz

• What do you know about the stock market??

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Why Study the Stock Market?

• Macroeconomics the Big Picture
• People get their impression of the level of
  business activity from the Stock Market.
• The Stock Market is the best predicator of the
  level of economic activity.

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Why Study the Stock Market?

• Microeconomics
• The Stock Market is a major source of financial
  capital for the business sector.
• The stock Market allows individuals with modest
  resources to become part owner of a company.

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Why Study the Stock Market?

• The Stock market allows individuals to share in
  the growth of companies through their claim on
  company profits.
• The Stock Market is the key to understanding the
  Private enterprise system. Without the stock
  market, major corporations could not exist for
  long.

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Benefits of Playing the Stock Market Game

• Learn to executed steps in purchasing and selling
  stock.
• Identify ways to evaluate a business.
• Recognize and explain the various forms of
  business organizations
• Identify the sources of funds available to a
  corporation.

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Benefits of Playing the Stock Market Game

• Identify and explain various aspects of the
  American economic system.
• Examine the impact of current political and
  economic events on stock prices.
• Use newspaper and other media to gather
  information.
• Identify basic economic concepts.
• Reinforce and integrate mathematical concepts.

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UMPS Fwat

• Societys first real business

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Where do companies get money to expand?

• Retained earnings
• Debt
• Loans
• Bonds
• Stock
• Preferred
• Common

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Legal Forms of Businesses

• Sole Proprietorships 16,154.000
• Partnerships 1,493,000
• Corporations 3,965,000

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The Business Sector Shares

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Corporations
Corporations
Partnerships
7
89
75
Sole Proprietorships
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Partnerships
Sole Proprietorships
6
of Firms
of Sales
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Starting and Growing a Business

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Sole Proprietorship a business owned and
operated by one person.

• Advantages
• Disadvantages

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Partnership two or more individuals agree to
own and operate a business together.

• Advantages
• Disadvantages

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Corporation a legal creation which is distinct
from the individuals who own it.

• Advantages
• Disadvantages

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Overview of the Stock Market

• Primary Market
• Where newly issued stocks are sold through
  investment bankers.
• New-Issues Market

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Secondary Markets where used or previously
owned stock is sold.

• Organized Stock Exchanges
• NYSE
• AMEX
• Regional Exchanges
• NASDAQ
• OTC market

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Getting Specific

• How to Read A Stock Table

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How Stocks are Traded Terms of Trade

• Broker Floor Broker
• Specialist Clerk
• Commission Quotes
• Ask (Offer) Price Ask Price
• At the Market Limit Order
• Show Time on Wall Street

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How to Make Make Money in the Stock Market

• Straight Trades
• Buying on Margin
• Selling Short

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The End