STOCK MARKET GAME

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STOCK MARKET GAME

• Rules of the Game

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1.Cost

• 7 / team max 5 members / team
• to be sure that you play
• GCEE pays 22 / team
• SIFEE runs the game
• GA largest SMG in U.S.

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2. Must Attend Workshop

• To play the game must attend workshop

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Each Team Gets 100,000

• Each team gets 100,000 cash to start.

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Invest for 10 Weeks

• October 4 to December 10
• Real World never invest for just 10 weeks
• Strategy to win the game
• Buy low cost highly volatile stocks
• Not a strategy for retirement or LT investing

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5. Winning Team

• Highest Portfolio Value (total Equity)
• Regional Winners school districts
• Carroll Co. - Carrollton City Independent
• Students get T-Shirts
• Go to Atlanta (underground) winners lunch
• State Winner
• Team Trophy
• Teacher gets week in NYC

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6. Purchase Individual Stocks

• NYSE AMEX NASDAQ
• Mutual Funds Preferred Stock ok
• Bonds - ok
• No Bank CDs T-Bills
• To win buy low sell high (ha!)

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7. Need Computer in Room

• Game is online from anywhere in World
• 24/7
• Have just one student enter buy/sell for team
• Hardest part of the Game
• Kids Do Not Want to Spend Their

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8. held in Cash earn 2

• In real world you would want to Diversify not
  100 in Stock
• To Win Game Must spend 200,000 on Stock - all
  your cash borrow 100,000

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9. Buy on Margin

• Initial Margin is 50
• Margin Portfolio Value (PV) Loan (L)
• Margin/PV margin as a of PV 50
• Eg 200,000 pv PV L gt .50
• 100,000 loan PV
• 100,000 margin L lt .50 PV
• PV Stock Cash

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10. Margin Call

• If your collateral (portfolio value) decreases
  your broker (lender) may want more collateral
  (will make you sell stock)
• Game Maintenance Margin (MMR) is 30
• ie., Margin (PV L) gt .30 PV or
• LOAN lt.70PV
• This requires a minimum PV gt 1.43 (Loan)
• If you fall be low the MMR you get a Margin Call
• Must then (within 3 weeks) sell stock

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11. Interest on Loan is 7

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12. Minimum Stock Price 5

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13. Brokerage Fee (Transaction Fee)

• You must pay 2 of the Value of each Buy and Sell
  transaction.

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14. GA SMG Extra Rules

• Not in the Manual
• 3 X 3 X 3
• 1st Transaction by end of 3rd week
• Buy a Minimum of 3 Stocks
• Hold 3 Stocks for min of 3 Weeks

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15. How Do You Win ?

• Buy Low Priced Volatile Stocks
• Kids want to by companies they have heard
  about
• (Nike , WalMart, Coke, Home Depot, etc)
• 100/sh buy 1000 shs for 100,000
• in 10 weeks
• 102/sh x 1000sh 102,000 - a
  2000 profit\
• but after a brokerage fee (2 in
  2 out) actually loose money
• or
• 10/sh buy 10,000 shs for 100,000
• in 10 weeks
• 12/sh sell 10,000 shs for 120,000 -
  a 20,000 profit
• NYSE generally Higher priced and Larger
  companies
• NASDAQ generally Lower priced and Smaller
  companies

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On Last Day Do Not Sell Stock

• You win with the highest P.V.
• Avoid brokerage fees on the last day
• Cannot actually Buy 200,000 initially
• (ie, borrow 100,000) must pay 2000
  brokerage fee on first 100,000 and then can only
  borrow approximately 98,000 and must pay 2 on
  the purchase with borrowed funds. You will only
  be able to purchase about 196,000 of Stock
  initially.

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17. Short Sale

• You borrow your NEW briefcase for 3 weeks but
  then sell it immediately for 100 (SHORT SALE)
  because I know that on the 3rd of February Mori
  Luggage is having a half priced sale on the exact
  same briefcase.
• I can buy a NEW briefcase back in 3 weeks for 50
  and then give it back to you. (SHORT COVER)
• KO example - as stocks go up you can face
  unlimited losses

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Buy Sell at 4 PM closing price

• 2nd period buy coke - by 330 pm price increases
  you decide you do not want it you can cancel
  your order up to 359 pm

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19. 10 Minute Break

• Stock Market Quiz after break

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20. Learning from the Market
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21. Must Register

• Go To - gcee.org
• Select Type Teacher with class
• Teacher as individual
• Give correct E-mail (one you use)
• The sooner you make a payment the sooner your
  teams get a Login In ID
• of Classes - NOT of Teams

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22. Play the Game

• Need Login ID Password
• To Practice use SIA_49_A25
• password is - YIL11470
• DO NOT Change password

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23. For Teachers (gcee.org)

• Teacher Support Center
• FAQ need 1 computer in room
• View Teacher Classroom Experience
• Grading Tip Photo of each Team rank on wall
  by P.V.
• If Something Goes Wrong
• Call Barbara Frutel 404-651-3280
• or 1-877-7529764

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24. For Students

• Rules (How To Play the Game) what we went over
  (1. 18.)

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25. Team IDs Passwords

• You should Keep a copy of Student Team
• Login IDs and Passwords
• After Login
• Main Stk Mkt Page (Menu Page)
• Change Password (bottom right)
• Have Students Change team password to something
  they will remember
• Passwords are Case Sensitive

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26. Play the Game

• GCEE.ORG
• CLICK Play the Stock Market Game
• Login ID Password
• Menu Page
• Account Summary
• Gains and Losses
• Pending Transactions
• Account Holdings
• Investor Research
• Transaction Notes
• Transaction History
• Enter A Trade

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27. How to Find Good Stocks

• Screening For Stocks
• 1.  http//finance.yahoo.com/q/hl?sBRUSX 
•   This site lists the largest 10 holdings of an
  untra small cap
• mutual fund that has had an average
  return of 25 per year
• for 5 years ending in Dec. 2007
• 2.   http//finance.yahoo.com/gainers?eo 
•    This site lists the top price gainers from
  the day
• before.  Also, in the left column you can
  also select the
• top price loosers from the day before.  A
  good list to
• find potential 100 gainers over the next
  ten weeks
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• 3. http//screen.finance.yahoo.com/stocks.html
• This site allows you to set criteria for
  stock you want
• Price, P/E, Max Market Cap, etc