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Playing the Market

Playing the Market. A stock market simulation. You have $10,000. No, not really… but for the sake of the game let’s assume you do. The rules are simple: you must buy or sell at least one stock per day,

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Playing the Market

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  1. Playing the Market A stock market simulation

  2. You have $10,000 • No, not really… but for the sake of the game let’s assume you do. • The rules are simple: you must buy or sell at least one stock per day, you have to buy or sell at the prices for that particular day (not the prices from another day), and you have to keep track of the money gained or lost from your purchases

  3. Here’s how it works • Each workday, stocks are traded in various markets around the world. • Each stock represents a share of ownership in a company. Some companies may have thousands of shares of stock. • If more people are buying than selling, the price goes up. If more people are selling than buying, the price goes down.

  4. How it works • People can buy or sell stock at any time the markets are open. How good companies are doing usually drives demand. • You will be doing just that… with your “$10,000” • I will offer six different “dates” you can buy and sell stock, each real and separated by six months (to show how prices can change over time) • On any given day, you can (and must) make a purchase of stock (or sale if you have any) • On the last day, we will all check our value and see who did the best. Ready to play?

  5. Example • If you bought stock in Disney one day for $31 a share, and it went up to $35 a share the next day, then you could sell it at a profit of $4 a share at that time. • If you decided to hold on to it, you wouldn’t make any money. You only make or lose money when you buy or sell a stock. • If the stock went to $33 the next day and you sold then, you’d make $2 a share. • Conversely, if the stock went down to $29 and you sold it, you would lose $2 a share. • Get it?

  6. The Stocks • Here are the stocks in our limited market that you will be able to choose from: Apple Computers Sprint Nextel DirecTV Wells Fargo Bank Ford Motor Company Pepsi Inc. Target

  7. Day One You can only buy today: Apple 144.16 Sprint Nextel 19.04 DirecTV 23.44 Wells Fargo Bank 33.90 Ford Motor Co. 7.99 Pepsi Inc. 63.64 Target 61.95

  8. Day Two Apple 124.62 Sprint Nextel 6.88 DirecTV 26.13 Wells Fargo Bank 27.24 Ford Motor Co. 6.13 Pepsi Inc. 65.64 Target 51.43

  9. Day Three Apple 161.22 Sprint Nextel 8.04 DirecTV 26.79 Wells Fargo Bank 28.63 Ford Motor Co. 4.39 Pepsi Inc. 65.25 Target 52.48

  10. Day Four Apple 91.17 Sprint Nextel 3.32 DirecTV 20.55 Wells Fargo Bank 9.59 Ford Motor Co. 1.87 Pepsi Inc. 46.18 Target 26.76

  11. Day Five Apple 170.31 Sprint Nextel 3.81 DirecTV 25.05 Wells Fargo Bank 26.81 Ford Motor Co. 7.43 Pepsi Inc. 56.73 Target 46.80

  12. Day Six Apple209.33 Sprint Nextel 3.29 DirecTV 34.26 Wells Fargo Bank 28.20 Ford Motor Co. 12.69 Pepsi Inc. 63.98 Target 51.68 Now determine the value of EVERYTHING you own. How did you do?

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