Stock Market Game (SMG)
Dr. Ken Martin, Program Director
What is it?
The Stock Market Game™ is a fun, no-risk way to learn about the American economy and how to invest in the stock market. Read a news article, Stock Market Game benefits students in understanding real world economy.
It is offered in all 50 states and is operated nationally by the Foundation for Investor Education.
The NMSU Stock Market Game™ is co-sponsored by NMSU’s College of Business and the New Mexico Securities Division.
Our Student-Managed Investment Fund also gives our college majors a unique opportunity to learn the fundamentals of stock valuation and get hands-on experience in the trading world.
Who can play?
Students from grades 4 through 12, college students, and adults can play and learn the NMSU Stock Market Game, although prizes are awarded only to student teams. The SMG is played on its national Internet website at http://www.stockmarketgame.org/, where links to many other sites and educational materials are available to aid in researching stocks.
- For current information on NMSU’s Stock Market Game:
- Go to the Stock Market Game national website.
- Click on the “Registration” tab.
- Choose “United States of America” and click the “Submit” button.
- Select “New Mexico” and click “Submit” once again.
Why play?
Used to teach a wide variety of topics in the classroom, the SMG improves study skills by placing students in decision-making roles that require research, analysis, and judgment. The team approach promotes interpersonal skills and cooperation in developing the team’s investing strategy. An Interdisciplinary Chart lists a wide variety of classroom disciplines that can benefit from using the SMG in the classroom.
Adults benefit by learning about securities trading and the related terminology in a fun, no-risk way. Players learn how to understand stock market quotes, how world events affect investments, how investments affect the economy, and how to protect themselves against investment fraud.
The Stock Market Game is designed to encourage awareness of the world of business and finance. The ultimate goal is to provide current and future investors with the knowledge that will allow them to participate effectively in the American economic system by being better equipped to make informed investment decisions.
Do I Need to Know about Investing to Play?
No prior knowledge of the stock market is required. Everything you need to know will be provided online, in the materials that are distributed, and in free regional training workshops. A variety of additional teaching materials are available for a nominal charge.
It is recommended that teachers and adults new to the Stock Market Game™ attend one of the workshops. In addition to sessions providing instructions on the SMG, the workshops usually include presentations by local stock brokers on general investment principles and terminology.
Stock ticker in the College of Business
How does the SMG™ Work?
For a ten-week period each fall and spring, teams of from 1 to 5 players research stock selections and invest a hypothetical $100,000 in stocks listed on the New York, American, and NASDAQ stock exchanges. Trading is based on daily closing prices for grades 4-12 teams, but college and adult players receive real-time pricing. Portfolios and rankings based on the value of portfolios are updated overnight on all days the markets are open.
The nation’s most realistic computer simulation, The Stock Market Game allows teams to:
- Buy and sell stocks
- Buy on margin
- Sell short
- Place price limits on transactions
- Receive dividends
At the end of ten weeks, state and regional winners in grades 4-12 regions and in an essay contest are announced and prizes are awarded. Winners from both semesters are also invited to attend awards luncheons held each May in Albuquerque and Las Cruces.
Click the picture to hear "The Bell."
Who rings the Stock Market’s Opening Bell™ and Closing Bell®?
The Opening Bell and The Closing Bell of the NYSE signify the start and finish of the NYSE’s trading day, at 9:30 a.m. and 4 p.m., respectively. The opening and closing are among the most widely viewed daily events in the world. Ringing the bell is an honor accorded to heads of state and senior executives of listed companies, among others.
Other Resources
InvestWrite
InvestWrite is a national essay competition for students who play the Stock Market Game. It allows for an easy way for teachers to integrate critical thinking and writing skills into their teaching of the stock market. For more information, go to http://www.investwrite.info.
Math Behind the Market
Math Behind the Market is a set of FREE lessons that provides students with multiple “real world” opportunities to practice the mathematical skills they are taught in the classroom. The activities in Math Behind the Market are correlated to the National Council of Teachers of Mathematics (NCTM) Principles and Standards in School Mathematics. For more information, go to http://www.mathbehindthemarket.org.
The activities address four main mathematical strands:
- Thinking Algebraically. Recognize patterns, develop formulate, and execute algorithms efficiently.
- Interpreting Statistics. Read and interpret statistically information quickly and accurately.
- Communicating Quantitatively. Representing information through the creation of graphs, charts, and tables as well as speaking clearly about mathematics.
- Tackling Complex Problems. Honing critical thinking skills through multistep computations and word problems.