Tesla Motors, Activision and Boeing were among the high-performing company stocks traded by Mount Madonna School (MMS) students engaged in a Virtual Stock Market competition during the last school year. When the contest ended students Joseph Frediani (’13), Willy Bryan (’13) and Daniel Clifton (now a senior), finished in 1st, 2nd and 3rd place among the 400 California high school students who participated!
‘They monopolized the podium,’ commented MMS Economics teacher Matt Meachen, clearly very pleased. Many of the MMS participants were part of Meachen’s Economics class, while others (including Clifton) were not and participated for fun.
The Virtual Stock Market Game, run by TD Bank, is an elaborate, web-based learning tool. Participants each receive $100,000 in virtual dollars in a virtual brokerage account and then engage in simulated buying and selling stocks at real-time prices.
Students invested in real-life stocks and market conditions, projecting for both the short and long-term. They can check stock quotes, look up ticker symbols, learn market terminology and buy and sell based on their own market research and supported by classroom discussion. Any of the stocks listed on the New York, NASDAQ and American Stock Exchanges can be traded. Game organizers track participants’ portfolios and rank them against other players.
Six MMS participants ranked in the top 100 finishers, with each increasing their original investments: Frediani by 114%; Bryan by 111% and Clifton by 88%. Freshman Holden Smith came in 24th place, with a 30% increase.
“I initially bought 800 shares of Tesla stock at $29.08 per share because I viewed them as a fiscally responsible company,’ said Frediani describing his strategy. ‘They not only make quality products, but also put significant funds into research and development, the importance of which we had just covered in class. If you can find a company (like Tesla) that stays on top of the wave, you can see immense returns with very little to no trading. By late August, shares of Tesla’s stock were valued at $146.83 giving me return of 405.00% or $ 94,000 of profit without making any trades. I simply invested in the right company at the right time – right as their new sedan model of electric car hit the market.
‘I also had a combined $20,000 profit from Activision and Boeing, both quality companies that had announced new products in fields that will continue to remain relevant – airplanes and video games. In short, I followed the advice Matt had given us: to find a company whose products sell, and that continues to make new, quality products that are always at the forefront of innovation.”
‘Participating in the game was loads of fun,” shared Bryan. ‘I definitely hope to trade in the ‘real’ stock market, but it certainly won’t be as stress free as doing it for fun. At one point my dad offered to give me some money to try it out for real, but I was way too nervous!
‘Trying to figure out what stocks to buy was tricky. Sometimes I just Googled what stocks were doing well. And other times after discussions in class I made decisions on my own. Things didn’t always work out, but I learned from my mistakes.’
An introduction to the stock market and trading practices is one unit in Meachen’s general Economics course that he refers to as ‘Blue Collar’ or ‘Practical’ Economics.
‘The course I teach covers aspects of managing personal finances (including ‘budget shopping’) as well as introductions to macro economics, lending and interest, credit ratings, stock markets, economic trends and the national deficit,’ he explained. ‘When students are having a conversation about politics, for example, it’s a little bit ‘faux’ until they have an understanding of basic economics.’
For one class activity, Meachen takes his students to Safeway, each with $20, and tells them they must purchase enough food for 10 lunches or two meals of five plates each.
‘Nobody was purchasing $7 logs of goat cheese,’ said Meachen. Instead, some students chose to buy bread, peanut butter and jelly as a more affordable option.
For another activity, students itemize their spending habits: tracking every dollar they spend for one week, and for another week, itemizing how their time is spent.
‘It’s all about self-management with an everyday, real-world application,’ asserted Meachen. ‘Students frequently complain that they ‘don’t have enough time.’ I want them to notice their behaviors and choices, and pay attention to the amount that is wasted. I want them to understand the value of the dollar.’
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For more information on the Virtual Stock Market game, visit
http://virtualstockmarket.tdbank.com/
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Contact: Leigh Ann Clifton, Marketing & Communications,
Nestled among the redwoods on 355 mountaintop acres, Mount Madonna is a safe and nurturing college-preparatory school that supports students in becoming caring, self-aware and articulate critical thinkers, who are prepared to meet challenges with perseverance, creativity and integrity. The CAIS and WASC accredited program emphasizes academic excellence, creative self-expression and positive character development. Located on Summit Road between Gilroy and Watsonville.