Financial Assets & Markets
Project - Investopedia Stock Market Simulation Game
Objective of the Stock Game: To apply the concepts learnt in the course to real live scenarios and to enhance learning of the students in making investments in capital markets using a stock market simulator.
Purpose: The purpose of this project is to conduct a mock stock portfolio performance analysis using Investopedia Stock Simulator, where groups choose stocks based on text book learnt concepts of stock markets.
What is a Stock Simulator?
What to do?
Each group of students will create an account on the Investopedia Stock simulator. Each group will be assigned a stock game with an amount such as $100,000 (mock investment) by the course instructor to invest in the stock market. The group will track investment for 4 weeks and create a Portfolio to compete for the highest profit in the class. Each group will submit a final report (20%). Grading will be proportional to the level of profit achieved by each group, trading goals, trading strategy, trading analysis, ranking assets in portfolio etc. After group report submission, each group will present the report and each member will be asked question through oral defense (10%).
1. Make Choices:
• Choose a group member ( max 4)
• Name(s)
• From list provided choose up to companies in which to invest.
2. Create a portfolio:
• Log onto Investopedia game created by the instructor (FIN 3013-AAMC-202210)
• Enter the name of company to look up the stock symbol and current (last trade) value.
• Record the company names, symbols, and current values on the spreadsheet provided.
• Decide how many shares you will purchase for each company.
• Calculate the percent of investment for each company and record on spreadsheet.
Daily Tracking:
• Track the changes in close price and record on daily tracking sheet below.
3. Display your Data:
Use Microsoft Excel to create Data Displays
• Create a graph to show your Investment Distribution. Included on this graph should be the Company name (or symbol) and the amount/percent of money initially invested in each company.
• After each week of tracking your stocks, create a graph showing the daily changes in stock value.
• Create a graph comparing your initial and final value of each company. Calculate the percent of change foreach.
4. Create a report:
Createa written report displaying your Portfolio results including:
1) a profile for each company with the name, address, sector, industry and a brief summary about the company.
2) an image of a stock certificate for each company, if possible.
3) Trading overview: A brief introduction with a graph/chart clearly showing your profit/loss starting from the beginning to the end of the game period.
(4) Trading goals: A brief introduction of your goal(s) for the trading. If your goal(s) changes as the game progresses, state how and why it changes.
(5) Trading strategy: A full analysis showing how you construct your initial strategy, including your analysis on the underlying stock.
(6) Trades analysis: A full report showing what happens on your profit/loss, how and why you change your trading strategy as the game progresses.
(7) Biggest winner and loser: Rank the performance of all the assets in your portfolio from the best to the worst. Identify the assets performing the best and the worst. Provide the reasons why you include them in your portfolio initially. Comment on their performance and provide the reasons why they become the biggest winner/loser.
(8) Trading conclusions. Based on the entire trading experience, state what general factors lead to your profit/loss, the appropriateness of trading strategy and change, and the lesson you learn for investments.