Thursday, February 4, 2010

Stock Market Game

We just started using the Stock Market Game which I asked the school to pay for at the beginning of the year and of course didn't start preparing for until it's start two days ago. The kids are really excited about it and I am too until I realize just how little I know about the stock market myself. Despite that as a family we have mutual funds and some stocks, I don't bother to follow them closely in the market, but check in on them every month or so. I think otherwise I would probably have an ulcer.

Earlier this week I reviewed the Rules of the Game with the kids and we made it through okay, but there are some things that I really need to look up and clarify as we go along. One of them is the short sell. I know I've heard of it, but to be honest, I thought it was kind of a shady thing.

Of course, after I did some research on other sites and spent hours putting a few lessons together did I go back and look that the SMG has lessons already available-- mental head slap!

The kids are in two teams (no fear, I have only six students now) and they both purchased shares for two companies. Though we discussed that not all companies are traded on the market, many have parent companies that are. Team #1 choose to start with Apple and Coca Cola. Team #2 went with Chrysler (they wanted Dodge) and Dreamworks.

Initially the students has a homework assignment that required them to go home and talk to their parents about the stock market and terms like market, IPO, mutual funds, etc. I was surprised how many of my parents (according to the students) told them to watch "the stock market channel." One student however, sat down with his mom and looked stocks up on We Seed which looks like a free version of the game we are using. We only paid $40 for our teams and the site is very involved, but I think the free version could be just as useful.
The game lasts for four months so I'm interested to see how it will work out.

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