The Stock Market Game is concluded with InvestWrite. This competition requires students to apply their critical thinking and analytical skills to financial topics. More than 234,000 essays were written by students across the country. Nearly three-hundred and eighty volunteers served to be judges. Writing essays and presenting them to a panel judges is a way for students to win prizes.
InvestWrite provides a culminating activity to stock market game students
An Emerson School fifth grader was awarded first place in Michigan in an InvestWrite competition. The Stock Market Game allows students to manage a $100,000 portfolio. The students did extensive research into the investments, and then wrote essays that reflected their decisions. Her essay focused on the future prospects for the wind turbine industry. She came in first place against more than 13,000 students from across the state.
Participants in The Stock Market Game are asked to look at the long-term effects of their choices and think about the larger economy as they make purchases. They can bring macroeconomics to life by doing this. The questions on the InvestWrite are tied to the broader economy, which helps students legitimately integrate their learning. InvestWrite allows students to showcase their creativity and analytical skills.
The most successful teams win
Stock Market Game, an investment competition for middle-school students, is the Stock Market Game. Eagle Ridge students took part this year in the competition, and they learned valuable lessons about economics. Investors can lose their money due to the volatility of stock markets. Some students thought their team would fail to win because they were losing money on their investments. However, this year's Eagle Ridge students are able to weather economic storms. Students who weren’t as fortunate learned from this experience.
The Eagle Ridge Middle School students were second- to fifth in their division out of 205 teams. They emphasized the medical industry, which earned them the first-place prize of all Ohio elementary school. Each student was given a portfolio of $100,000 and asked to keep detailed records about each stock they purchased and sold. They also had to analyze market reports. The winning teams are those that make the most money.
Learn financial literacy and math
A new study has shown that the Stock Market Game can increase student scores on multiple-choice exams and basic financial concepts. Teachers in the test class used the stock market game in their classes, while those in the control class did not. Students from both the test and control groups completed the same pre-and post-tests, demographic surveys and math aptitude tests. Teachers who used the game to teach students showed higher scores on both the pre and post-tests. Teachers also received online access to required lessons, lesson plans, and assessment resources.
Learning Point Associates conducted a study that found students who played the Stock Market Game had significantly higher financial literacy scores than their peers. On average, students in grades 6 through 8 who played the Stock Market game scored higher on financial literacy tests than those who did NOT. This shows that students can use this game to learn more about the financial world and to become better investors. The program is not recommended for students younger than 13.
FAQ
Which investments should I make to grow my money?
It is important to know what you want to do with your money. How can you expect to make money if your goals are not clear?
Also, you need to make sure that income comes from multiple sources. This way if one source fails, another can take its place.
Money doesn't just come into your life by magic. It takes planning and hardwork. Plan ahead to reap the benefits later.
What are the types of investments available?
There are many different kinds of investments available today.
Here are some of the most popular:
-
Stocks - Shares of a company that trades publicly on a stock exchange.
-
Bonds are a loan between two parties secured against future earnings.
-
Real Estate - Property not owned by the owner.
-
Options - These contracts give the buyer the ability, but not obligation, to purchase shares at a set price within a certain period.
-
Commodities: Raw materials such oil, gold, and silver.
-
Precious metals - Gold, silver, platinum, and palladium.
-
Foreign currencies - Currencies that are not the U.S. Dollar
-
Cash – Money that is put in banks.
-
Treasury bills - Short-term debt issued by the government.
-
Commercial paper - Debt issued by businesses.
-
Mortgages - Loans made by financial institutions to individuals.
-
Mutual Funds - Investment vehicles that pool money from investors and then distribute the money among various securities.
-
ETFs (Exchange-traded Funds) - ETFs can be described as mutual funds but do not require sales commissions.
-
Index funds - An investment vehicle that tracks the performance in a specific market sector or group.
-
Leverage: The borrowing of money to amplify returns.
-
ETFs - These mutual funds trade on exchanges like any other security.
These funds offer diversification benefits which is the best part.
Diversification is when you invest in multiple types of assets instead of one type of asset.
This helps you to protect your investment from loss.
What are the 4 types of investments?
There are four types of investments: equity, cash, real estate and debt.
A debt is an obligation to repay the money at a later time. It is typically used to finance large construction projects, such as houses and factories. Equity can be described as when you buy shares of a company. Real estate means you have land or buildings. Cash is what you have on hand right now.
When you invest your money in securities such as stocks, bonds, mutual fund, or other securities you become a part of the business. You share in the losses and profits.
Statistics
- Over time, the index has returned about 10 percent annually. (bankrate.com)
- If your stock drops 10% below its purchase price, you have the opportunity to sell that stock to someone else and still retain 90% of your risk capital. (investopedia.com)
- Some traders typically risk 2-5% of their capital based on any particular trade. (investopedia.com)
- Most banks offer CDs at a return of less than 2% per year, which is not even enough to keep up with inflation. (ruleoneinvesting.com)
External Links
How To
How to invest In Commodities
Investing in commodities means buying physical assets such as oil fields, mines, or plantations and then selling them at higher prices. This is called commodity trading.
Commodity investing is based on the theory that the price of a certain asset increases when demand for that asset increases. The price falls when the demand for a product drops.
If you believe the price will increase, then you want to purchase it. You'd rather sell something if you believe that the market will shrink.
There are three main types of commodities investors: speculators (hedging), arbitrageurs (shorthand) and hedgers (shorthand).
A speculator will buy a commodity if he believes the price will rise. He does not care if the price goes down later. Someone who has gold bullion would be an example. Or someone who invests in oil futures contracts.
An investor who invests in a commodity to lower its price is known as a "hedger". Hedging is a way to protect yourself against unexpected changes in the price of your investment. If you have shares in a company that produces widgets and the price drops, you may want to hedge your position with shorting (selling) certain shares. This is where you borrow shares from someone else and then replace them with yours. The hope is that the price will fall enough to compensate. If the stock has fallen already, it is best to shorten shares.
A third type is the "arbitrager". Arbitragers trade one thing in order to obtain another. For instance, if you're interested in buying coffee beans, you could buy coffee beans directly from farmers, or you could buy coffee futures. Futures enable you to sell coffee beans later at a fixed rate. The coffee beans are yours to use, but not to actually use them. You can choose to sell the beans later or keep them.
The idea behind all this is that you can buy things now without paying more than you would later. If you're certain that you'll be buying something in the near future, it is better to get it now than to wait.
Any type of investing comes with risks. Unexpectedly falling commodity prices is one risk. The second risk is that your investment's value could drop over time. Diversifying your portfolio can help reduce these risks.
Another factor to consider is taxes. When you are planning to sell your investments you should calculate how much tax will be owed on the profits.
Capital gains tax is required for investments that are held longer than one calendar year. Capital gains taxes are only applicable to profits earned after you have held your investment for more that 12 months.
You may get ordinary income if you don't plan to hold on to your investments for the long-term. On earnings you earn each fiscal year, ordinary income tax applies.
Commodities can be risky investments. You may lose money the first few times you make an investment. You can still make a profit as your portfolio grows.