Stock Market Game

What is a Stock?
★ A share in the ownership of a public company
★ All companies have a ticker symbol
○ Nike (NKE)
○ Netflix (NFLX)
★ All stocks have a price to buy one share
★ IPO - Initial Public Offering
○ The very first price the stock was listed at
★ Portfolio - your collection of investments
What is the Stock Market?

★ The “place” where people buy and sell (trade) stocks

★ Many different places but we will focus on NYSE (New York Stock
Exchange)
★ The market is open from 9:30am - 4:00pm EST
★ Stock prices are constantly changing throughout these hours
What is the point in investing?
★ The goal is to make money
★ When companies are performing good, their stock price rises & when they
are performing poorly, their stock price falls
★ You make money by selling your stock for a price higher than what you paid
○ Making money is called a capital gain ($ sold - $ paid = positive number)
○ Example - I own 1 stock of Nike. I bought this stock for $200 and I sold it for $250
■ $250 - $200 = $50 capital gain

★ You lose money by selling your stock for a price lower than what you paid
○ Losing money is called a capital loss ($ sold - $ paid = negative number)
○ Example - I own 1 stock of Nike. I bought this stock for $200 and I sold it for $100
■ $100 - $200 = -$100 capital loss.
How to Choose?
★ Pick companies you’re interested in!
★ Past performance
★ Price
★ Beta
○ Beta helps determine how risky a stock is
○ If a beta is higher than 1, it is considered riskier
○ If a beta is less than 1, it is considered safer
○ Rule of thumb: higher the risk, higher the return!
Rules
You are given $10,000 that you must invest in stocks. You must choose 5 different
companies that you want to invest in. You will decide how you want to distribute
this money between your companies. Everyday you will keep track of your stocks
and record how much money is in your portfolio. You MUST make at least one
trade per week within your five companies. Whoever can make the most money at
the end of the marking period will win!