stock market smash game course outline
DESCRIPTION
TRANSCRIPT
Stock Market Simulation Game: Introduction and Learning Path
Bruno Wu, Managing Director
Tel: +852 6840 7460
Jack Frew, Managing Director
Tel: +852 9820 8069
Problems
Today’s generation of middle school and high school students have a short attention span.
They are less interested in school – they would rather play games.
They do not realize their schoolwork’s value, and how studying will enable them to earn
money as adults.
Solutions
We believe games, real-world situations and real prizes are the key to inspiring middle
school and high school students.
Stock Market Smash uses an intense stock market simulation to spark students’ interest in
English, Math and Economics.
This unique two-month game puts students in charge of a fantasy hedge fund.
Students read the English news and pick stocks to compete for real prizes including iPad,
PC laptop, Xbox and PS3.
Intense. Inspiring. Fun.
Key learning outcomes Stock Market Smash (SMS) employs real-world application of academic subjects, showing
students how their studies can benefit them. Students will be excited to learn advanced topics
in three core subjects:
English: formal written English used in business newspapers such as the Wall Street
Journal and Financial Times; vocabulary relating to economics, business, politics, finance,
and banking; formal spoken English used in business presentations.
Math: decimals, fractions, estimates, percentages, growth rates, graphs, and charts.
Economics: microeconomics, macroeconomics, financial markets, profit and loss,
government regulation, taxes, price theory, and investment.
In addition to a positive impact on grades – SMS motivates students to read international
newspapers every day.
SMS teaches important lifelong skills such as goal setting, strategy development, analysis,
and presentation skills.
SMS encourages teamwork via its intense competitive environment.
To earn first prize, students will need to think critically, work as a team, and make a strong
presentation to the class.
Research shows
better test scores Recent academic research from the USA showed that a one-month stock market simulation
game was linked to higher test scores in two key areas:
Mathematics test scores: Middle school and high school students who played a stock
market simulation game scored 8-12% higher on standardized Math tests than students
who did not play the game.
Financial literacy: Middle school and high school students who played a stock market
simulation game scored 16-18% higher on financial literacy tests than students who did not
play the game
Math Test Results Financial Literacy Test Results
Source:LearningPointAssociates Source:LearningPointAssociates
Top quality teachers
This live class is given by passionate teachers who have years of professional experience in
financial markets.
A passion for teaching: 100% of our teachers have years of teaching experience. They
are passionate, intense and inspiring. With our teachers, your children will be excited to go
to class.
Qualified stock market experts: 100% of our teachers are have finance backgrounds, with
many years of experience in M&A, Equity Research, and Equity Investment at top
investment banks (including Deutsche Bank and UBS). With our teachers, your children will
learn the methods of real Wall Street professionals.
We love teaching.
We know finance.
We proudly present Stock Market Smash.
Week 1: Intro to the stock market
Why invest in stocks? What kinds of jobs deal with the stock market?
What is a stock? What is a bond? What is the stock exchange?
What is diversification? What is risk?
Divide into teams, construct portfolios, and write on each stock in a daily
journal
Learning Outcomes
English: Key vocabulary relating to the stock market
Math: ratios, fractions, growth rates
Economics: Supply and demand, price theory
Learning path
5
Week 2: Newspapers
What newspapers should you read? What articles should you look for?
Today’s macro issues: credit markets in Europe and China; recession in the
US
How does credit relate to equity?
Valuation: P/BV and ROE
Learning Outcomes
English: Formal English used in the Wall Street Journal and Financial Times;
key valuation terminology
Math: ratios, fractions, growth rates, line charts, and correlation
Economics: Supply and demand, price theory, credit theory, government
regulation and taxes
Learning path (cont’d)
6
Week 3: Risk vs. Return
How can we measure risk?
How does risk impact investment return?
What is a credit rating? How can they impact stock prices?
Valuation: beta, cost of debt, cost of equity
Learning Outcomes
English: Formal English used in the Wall Street Journal and Financial Times;
key valuation terminology; behavioral finance terminology
Math: ratios, fractions, growth rates, line charts, correlation, yields, and
multipliers
Economics: Supply and demand, price theory, credit theory, government
regulation, taxes, and behavioral economics
Learning path (cont’d)
7
Week 4: Interest rates & yields
What are dividends? Why do companies pay dividends?
How are dividends related to earnings?
How are dividends related to interest rate?
Valuation: Interest rates, dividends, free cashflow, and related yields
Learning Outcomes
English: Formal English used in the Wall Street Journal and Financial Times;
key valuation terminology; behavioral finance terminology
Math: ratios, fractions, growth rates, line charts, correlation, yields, and
multipliers
Economics: Supply and demand, price theory, credit theory, government
regulation, taxes, behavioral economics, dividend theory, and economic
forecasting
Learning path (cont’d)
8
Week 5: Leverage & Asset Purchases
What is leverage?
Why do companies increase or decrease leverage?
What happens when a company buys assets? How does this impact stock
price?
How does leverage relate to risk?
Learning Outcomes
English: Formal English used in the Wall Street Journal and Financial Times;
key valuation terminology; behavioral finance terminology
Math: ratios, fractions, growth rates, line charts, correlation, yields, and
multipliers
Economics: Supply and demand, price theory, credit theory, government
regulation, taxes, behavioral economics, dividend theory, economic forecasting,
and business cycles
Learning path (cont’d)
9
Week 6: Mergers & Acquisitions
What happens when two companies combine?
Why do companies buy other companies? How does it impact stock price?
What is an acquisition premium?
How can you identify possible acquisition targets?
Learning Outcomes
English: Formal English used in the Wall Street Journal and Financial Times;
key valuation terminology; behavioral finance terminology
Math: ratios, fractions, growth rates, line charts, correlation, yields, and
multipliers
Economics: Supply and demand, price theory, credit theory, government
regulation, taxes, behavioral economics, dividend theory, economic forecasting,
and business cycles
Learning path (cont’d)
10
Week 7: Review & Final Presentation Preparation
Review the performance of teacher’s portfolio
Review key vocabulary, math and economics concepts learned during the
last 7 weeks
Each team will create a presentation about their portfolio
Use the valuation methods from class: P/E vs EPS growth; P/BV vs ROE vs
cost of equity; dividend and free cashflow yields
Learning Outcomes
English: Formal English used in the Wall Street Journal and Financial Times;
key valuation terminology; behavioral finance terminology; English for business
presentations
Math: ratios, fractions, growth rates, line charts, correlation, yields, and
multipliers
Economics: Supply and demand, price theory, credit theory, government
regulation, taxes, behavioral economics, dividend theory, economic forecasting,
and business cycles
Learning path (cont’d)
11
Week 8: Open Day & Final Presentations
Review performance of the stock market in the last 8 weeks & key news
stories
Review teacher’s portfolio performance
Students will present
Prizes will be presented to top students
Learning Outcomes
English: Formal English used in the Wall Street Journal and Financial Times;
key valuation terminology; behavioral finance terminology; English for business
presentations
Math: ratios, fractions, growth rates, line charts, correlation, yields, and
multipliers
Economics: Supply and demand, price theory, credit theory, government
regulation, taxes, behavioral economics, dividend theory, economic forecasting,
and business cycles
Learning path (cont’d)
12