Vincent Massey Public School

Stock Market GameWorkshop 1Workshop 1

The Stock MarketThe Stock Market

GOOD LISTENERS MAKE GREAT BROKERS

You WILL know everything that you You WILL know everything that you need to know!!!!need to know!!!!

Trust me!!!!Trust me!!!!

THE STOCK MARKET GAME

THE AMOUNT OF FUN YOU HAVETHE AMOUNT OF FUN YOU HAVE

ANDAND

THE AMOUNT OF MONEY YOU MAKETHE AMOUNT OF MONEY YOU MAKE

DEPEND ON THE A B C’SDEPEND ON THE A B C’S

WARENESS / ATTENTIVENESS

EING PREPARED/ BEST MANNERS

OURTESY / CO-OPERATION

WHAT IS THE STOCK MARKET GAME?

The stock market simulation is a huge game played by the Grade 8 students in the

gym.

Students play this game in groups or “Brokerage Houses” of 2 to 3 players.

Each player is called a broker.

WHAT DO THEY DO??

Each team or brokerage house begins with $1000 plus any bonuses they get

for costumes, equipment and preparation.

During the game, each team tries to buy and sell the right stocks at the right time in order to make their

investments grow….or not !!

BUT I DON’T KNOW ANYTHING ABOUT THE STOCK MARKET!!!

SO WHAT!!!

WE WILL TEACH YOU EVERYTHING YOU NEED TO KNOW FOR THE FINAL DAY

OF FUN.

ALL YOU HAVE TO DO IS COME ALL YOU HAVE TO DO IS COME TO THE CLASSES WITH AN OPEN TO THE CLASSES WITH AN OPEN MIND, A SENSE OF ADVENTURE MIND, A SENSE OF ADVENTURE

AND………..AND………..

…….an interest in making money!!!!!!

Let’s check your BUSINESS SENSE ….

Forming a businessForming a business Quality workQuality work Expansion opportunities, partnerships or employeesExpansion opportunities, partnerships or employees

Shared Profits or SalaryShared Profits or Salary Business competitionBusiness competition Gathering informationGathering information Assessing competitor’s strengthAssessing competitor’s strength Communication with competitionCommunication with competition

WHERE DO STOCKS COME FROM??

A company has a new product that tests show will be ‘THE NEXT BEST THING”!!!!

BUT…………..

They need money to produce and market it.

SO…………….

They borrow from other people who believe that the product will do well

The company provides a certificate to show that the people have invested in the company.

The certificate is called a stock or a share and the people are called stockholders or

shareholders.

Stockholders are entitled to a percentage of the profits according to their investment.

They run the risk of losing their money if the company does not do well.

If the company does well, the demand goes …..

If the company does not do well, the demand goes….

UP

DOWN

WHAT ARE COMMODITIES?

OIL and GOLD are considered OIL and GOLD are considered commodities (goods).commodities (goods).

They can be bought and sold just like They can be bought and sold just like stocks.stocks.

They are also represented by paper They are also represented by paper certificates.certificates.

USEFUL DEFINTIONS BOOM (BULL MARKET)-A BOOM (BULL MARKET)-A

period of time during which period of time during which investor confidence and trading investor confidence and trading volume is high.volume is high.

CRASH (BEAR MARKET)-A CRASH (BEAR MARKET)-A period of time during which period of time during which investor confidence and trading investor confidence and trading volume is low.volume is low.

STOCK SECTORS-Specific STOCK SECTORS-Specific portions of a market that share portions of a market that share similar characteristicssimilar characteristics

TRANSACTION CAP-Limit TRANSACTION CAP-Limit that an investor is willing to that an investor is willing to pay for a stock. (Also, limit of pay for a stock. (Also, limit of shares that may be purchased or shares that may be purchased or sold.)sold.)

LIMITED PORTFOLIO-Less LIMITED PORTFOLIO-Less than 4 different investment than 4 different investment targets, usually in 1 sector - can targets, usually in 1 sector - can be riskybe risky

MIXED PORTFOLIO-Range MIXED PORTFOLIO-Range of investment targets covering of investment targets covering several sectors - lower riskseveral sectors - lower risk

FORMING YOUR BROKERAGE FIRM

THE NAME OF YOUR BROKERAGE FIRM (What THE NAME OF YOUR BROKERAGE FIRM (What impression does it give?)impression does it give?)

THE LOGO OF YOUR FIRM (Visual impact)THE LOGO OF YOUR FIRM (Visual impact) THE SLOGAN (What does it say about you?)THE SLOGAN (What does it say about you?) COSTUME IDEAS (Make your look unique/Detail)COSTUME IDEAS (Make your look unique/Detail) OFFICE EQUIPMENT (Who will bring what items/be OFFICE EQUIPMENT (Who will bring what items/be

organized)organized) BUSINESS CARDS (Design/who will make them)BUSINESS CARDS (Design/who will make them) COMPANY DESK SIGN (“Flange”.Capture the firm’s COMPANY DESK SIGN (“Flange”.Capture the firm’s

message)message) CALCULATOR (Who brings it)CALCULATOR (Who brings it)

FOUR SIMPLE GUIDELINES TO CHOOSING GOOD PARTNERS

Good partners can offer suggestions and listen to Good partners can offer suggestions and listen to yoursyours

Good partners can work well with you or alone if Good partners can work well with you or alone if you are away from the desk doing the buying and you are away from the desk doing the buying and sellingselling

Good partners are willing to take turns and do a Good partners are willing to take turns and do a fair share of the workfair share of the work

Good partners are hoping to mix the fun and the Good partners are hoping to mix the fun and the work for a GREAT DAY!!work for a GREAT DAY!!

Good Partners Mean Good Business

WHO WINS???Every team or brokerage house (firm) that makes an Every team or brokerage house (firm) that makes an

investment grow is a WINNER.investment grow is a WINNER.

The firms that have the most assetsThe firms that have the most assets

(total value of stocks, gold, oil and cash)(total value of stocks, gold, oil and cash)

at the end of the game are declared the winners.at the end of the game are declared the winners.

GOOD LUCK!!

BONNE CHANCE !!BONNE CHANCE !!