The stock market is one place where the perception of risk in the mind of the public has always been high, with a tendency towards stock trading in a person being seen as a malady. A potential concern is that while free online investing is without risk, it may encourage a culture of excessive risk taking and short-termism that may carry through to the real world of investing. In the early phase of development, a company first puts a product or service on the market and its sales are expected to grow rapidly because not everyone has what it sells. Set the contest dates that work best for your class schedule (have your students trade for one week, one month, one year-whatever works best for you!), choose the initial cash balance, and set other contest rules like commission rates. In real life, investors are not forced to swing at every pitch and nobody counts strikes, so we structured the game the same way.
Many teachers and professors of banking and finance are now using stock market simulation games to teach their students about the rudiments of investing in stocks. In addition, all portfolio gain (profit) for the month cannot be from single stock trade. Many stock market games are based on real life stocks from the Chicago Mercantile Exchange, Nasdaq , NYSE , AMEX or other major market indexes. Data from 2012 mutual fund performance shows that just 39% of professional fund managers beat their index while the average fund return actually trailed the stock market (S&P 500) by a percent after fees. There are several companies which offer a virtual platform for playing in the stock market. This news increased the stock price because Boeing will make more profit from those sales.
Stock market games exist in several forms but the basic underlying concept is that these games allow players to gain experience or just entertainment by trading stocks in a virtual world where there is no real risk. Each team starts with a hypothetical $100,000, and the object of the game is to invest in stocks (listed in a code book) over a ten-week time frame in the hope of making the team’s portfolio of stocks appreciate in value.
Whether the market is offering shares in the next big celebrity, current run Hollywood movies, future events that may never happen (Like Arnie becoming president), the Fall Primetime TV show schedule, current news events or even the next big search term – these markets offer such an unreal view that it fascinates people and draws them in to explore it further.. and maybe stay a while, play the game, and enjoy themselves.
Furthermore, despite being an informative game, due to the stock market’s unpredictable nature, I do not see myself investing in the market in the future. There are various ways to behold the market uprising and to make them fall with in fractions of seconds. The Stock Market Game is operated nationally by the Securities Industry and Financial Markets Association (SIFMA) Foundation for Investor Education. You can even do day trading as well as short selling in these virtual stock exchanges. Most paid stock games allows you also to trade stocks, options, bonds, futures, mutual funds, futures options, and equities. Sync with standard SMG portfolios’ current Account Summary, Pending Transactions, Transaction Notes, and market news information. Based on the information they gather, they make decisions to buy, sell or hold their stock selections.