Stock Market Project

ECONOMICS/FINANCE
Stock Market Simulation

Introduction: The Stock Market has been a rollercoaster ride for many investors lately. However,
many stock market analysts rely on the idea that losses can be made up over the long run rather than
in the short-term. You are going to have the opportunity to invest some hard-earned capital into
several companies that you feel have a good chance of being profitable.
Objectives:
To understand the process of researching and investing in companies that offer stock
publicly, through the NYSE or NASDAQ markets.
To be able to make decisions, on the purchase or selling of stock, that will result in a profit
being made from the initial investment
Directions:
You will be given $100,000 to begin your investing.
You must select THREE to FIVE companies in which to place your investment.
You will need to complete a PREDICTIONS handout and submit it at the beginning of
the simulation. A REFLECTION handout will be given at the end of the simulation.
This will be turned in separately from your STOCK PORTFOLIO
You will need to keep track of how well your investments are doing throughout this
simulation. A RECORD OF INVESTMENT must be completed each time you
check your stocks in class and at home. This spreadsheet may be downloaded from
the class website.
At one point, you will be able to reallocate some of your funds. This means, at that
time, you may sell off stock and buy additional (or new) shares of a company. At
that point, a REALLOCATION form must be completed.
You will need to complete and submit a final SELL-OFF handout along with a
reflection worksheet.
You will also need to submit your RECORD OF INVESTMENT as well as a
graph showing each stocks value throughout the project. This graph must be a line
graph and must be created using your own data using excel or other spreadsheet
program. This graph must be in color.
You will need to submit a STOCK PORTFOLIO that contains the following
information about your investments. These need to be in the following order:
1.
2.
3.
4.
5.
6.
Selecting a Company (WS)

Initial Purchase Sheet
Reallocation Sheet
Sell-off Sheet
Record of Investment (spreadsheet)
Graph of investments progress (one graph for all stocks)
STOCK MARKET SIMULATION 1
ECONOMICS/FINANCE
Selecting a Company (WS)

You will need to select three to five companies that you may have an interest in
investing (remember, it is better to invest in companies that you have heard about
or know about their products).
Start with what you know
List 5-10 products that you use regularly
List 5-10 companies that your are

familiar with (but not necessarily because
you use their product/service)
Narrow down your choice to three to five companies
Company
Product/Service
Web Address
Ticker
Symbol
1.
2.
3.
4.
5.
Go to either Yahoo! Finance or GOOGLE Finance pages to look up the ticker symbol for
the companies with whom you want to invest your money.
ECONOMICS/FINANCE
Go to the Homepage of the company and look for the ANNUAL REPORT on the web
page. You will need to review the report and look at the BALANCE sheet (data and
graphs) for financial information that will help you decide which stock to invest in (look
at the sample balance sheet...would this be a good company to invest in?).
You will need to look at the companys track record over months, or even, years, by
looking at the graphics the site(s) provide. All you need to do is to type in your
companys ticker symbol.
Balance Sheet Example
balancesheetexample.com

ECONOMICS/FINANCE
Name __________________________
Period___________ Date __________
Making predictions
Knowing that the purpose of investing in stock is to be able to sell the stock, in the future, for
you make a profit. You need to complete this handout and submit it to the teacher separate
from your portfolio.
Make a prediction of how much your stock will go up by the sell-off date ____________.
1. Company ________________________________ Ticker __________
How much ($ value) do you feel your stock will increase? __________________
Explain why you feel your stock will increase by this amount.
2. Company ________________________________ Ticker __________

3. Company ________________________________ Ticker __________

ECONOMICS/FINANCE
Making predictions (cont)

4. Company ________________________________ Ticker __________
5. Company ________________________________ Ticker __________

6. Which stock, do you feel will have the highest ROI? Why?
ECONOMICS/FINANCE
Stock Market Project
Initial Stock Purchase Sheet (Even though we are using technology, you will be completing
INITIAL STOCK PURCHASING SHEET
handouts for the purchase, reallocation and selling of stock). You must complete this and
turnhave
it into$100,000
the teacher with
your portfolio.
You
to invest
in the stock market. Since an
investment takes time to pay off, your investments will be
tracked over a period of time to see how much you would
have gained----or lost.
Complete the following information related to each
investment:
1. Company Name ____________________________ Ticker _______

Purchase Price $___________ 52 Week High ______ Low_____
Number Shares purchased ______ TOTAL INVESTMENT $_______
Amount left over $_______


STOCK PURCHASING SHEET

Amount left INITIAL
over $_______
(cont)


Purchase Price $___________ 52 Week High ______
Low_____
STOCK
MARKET SIMULATION 6

ECONOMICS/FINANCE

What was the overall total investment you made? $__________

How much (total) did you have left over? $__________
Which
stock
dohave
youleft
feel
will be the biggest WINNER? Explain
How much
do you
over?________________
___________________________________________________________
___________________________________________________________
You can buy additional stock in one of you other companies or you can save it in a savings
___________________________________________________________
account to be used at a later date.
___________________________________________________________
Which stock do you have the most concerns about? Explain
___________________________________________________________
___________________________________________________________
___________________________________________________________
___________________________________________________________
_______________________________________________________________________
_
_______________________________________________________________________
ECONOMICS/FINANCE
_

STOCK INVESTMENT REALLOCATION
NAME ________________________________
DATE ____________
INITIAL STOCK SELL OFF

(Price/share)
(No. of Shares)
Ending Value
Stock
Stock
Stock
TOTAL AMOUNT AVAILABLE
_____________
Purchasing of New/Additional Stocks

(Price/share)
(No. of Shares)
Cost
Stock
Stock
Stock
Total cost of all new stock
$________________
Total value of new/additional

stocks
ECONOMICS/FINANCE
$________________
STOCK INVESTMENT SELL-OFF
Final Stock Sell-Off

NAME ________________________________
DATE ____________
Name
BEGINNING VALUE OF PORTFILIO

(Price/share)
(No. of Shares)
100,000
Final Value
Stock
Stock
Stock
Stock
Stock
Total cost of all stock
$________________
Savings
$________________
Current value of stock portfolio $________________

Difference between initial value and current value totals (+/-)
Capital Gain
or
$________________
Capital Loss
ECONOMICS/FINANCE
Name _________________________
Per. _________ Date_____________
Stock Investment Reflection
Review your predictions from the beginning of the project. Reflect on the outcome of your
investment and answer the following questions in a legible manner (may be typed). This is to
be submitted separately from your portfolio.
1. Did any or all your predictions prove to be true? Explain how that (possibly) happened
for each stock you purchased.
a. _______________________________________________________________
_______________________________________________________________
b. _______________________________________________________________
_______________________________________________________________
c. _______________________________________________________________
_______________________________________________________________
d. _______________________________________________________________
_______________________________________________________________
e. _______________________________________________________________
_______________________________________________________________
2. Describe some of the factors that influenced the value of your stock.
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
ECONOMICS/FINANCE
3. Describe some of the challenges you had throughout this simulation regarding decision
making and being prepared.
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
4. Would you ever consider investing in stocks in the future? Explain your answer in a
minimum of four sentences.
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________

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ECONOMICS/FINANCE

Stock Market Simulation

Selecting a Company (WS)

Selecting a Company (WS)

List 5-10 products that you use regularly

List 5-10 companies that your are

Narrow down your choice to three to five companies

STOCK MARKET SIMULATION 2

STOCK MARKET SIMULATION 3

2. Company ________________________________ Ticker __________

3. Company ________________________________ Ticker __________

STOCK MARKET SIMULATION 4

Making predictions (cont)

5. Company ________________________________ Ticker __________

STOCK MARKET SIMULATION 5