Taking Risks
Playing the stock market is all about taking risks.
In Heidi Olson鈥檚 Economics and Investing class, 海角视频 students utilize their research skills by looking at stock tickers, company CEOs, products, competitive position, market cap, and historical performance in order to make informed decisions when playing the SIFMA stock market simulation, a nationwide competition. Each participating student is given a one hundred thousand dollar budget to invest in a portfolio. There are requirements regarding how to invest the imaginary money and how to diversify.
For Marshall, one of Olson鈥檚 students, many of the skills learned in class paid off, as he finished second in his district (of about 700 students) and top-20 in the state (of about four thousand students).
鈥淲hen I was playing the stock market game, I didn鈥檛 think I would make it so far,鈥 Marshall said. 鈥淪o to be able to make it to second place -- and at one point first place -- it felt like an achievement to me.鈥
鈥淢arshall鈥檚 gamble on Pacific Gas and Electric (PG&E), a stock that was near bankruptcy, paid handsome simulated dividends when the stock rebounded.鈥
I think every kid who gets a big win gains confidence in a skill that鈥檚 larger than just getting an 鈥楢鈥 in class,鈥 Olson said. 鈥淢arshall also became really confident in helping other people...I think there was a buzz. There was a buzz in the school, in the class, about his performance.鈥
鈥淭his was my first time trading stocks, so I learned how to do that, first and foremost,鈥 Marshall said. 鈥淏ut I also learned how to look at a product or company and understand what鈥檚 happening within the company and get an idea of whether I should invest or not.鈥
鈥淗e followed directions,鈥 Olson said of Marshall. 鈥淗e met all of the goals for getting invested throughout the term...There were hurdles along the way and he hit all those hurdles.鈥
Olson credited Marshall with going in on big positions early in the process in order to maximize profit while other students remained reluctant.
鈥淚 definitely think, seeing what the potential is, it鈥檚 something that鈥檚 important to know how to do,鈥 Marshall said of investing. 鈥淎nd I don鈥檛 think I鈥檇 make a career out of it, but I think I would invest and participate.鈥
Marshall鈥檚 classmate Kiran also finished in the top ten percent in the SIFMA simulation competition. Olson credited both students with assuming a leadership role in the class, verbalizing concepts to their classmates.
鈥淭here鈥檚 a lot of energy in the class," Olson said. "And I think that these kids with their concepts can have a conversation about what鈥檚 going on in the economy in a holistic way."