May 1, 2003 by Rocio Rueda NMSU News Center
Students from Deming have taken top honors in the spring 2003 Stock Market Game (SMG) sponsored by the College of Business Administration and Economics at New Mexico State University and the New Mexico Securities Division.
Deming High School students James Donchess, Octavio Carreon and Jeremy Bowman, under the guidance of their teacher Claudia Rossman, won the state championship. Rachel Bailey, also a student of Rossman, won the essay contest for grades 9-12 and Jenner Wagner Hedges, under the direction of his teacher Olen J. Hedges of Santa Rosa Elementary School, won the essay contest for grades 4-8.
An innovative method for teaching economics to students, the SMG is a computer-simulated competition played this spring by almost 1,200 high school, middle school, and elementary students throughout New Mexico.
“The stock market fluctuated quite a bit this spring – both before and after the war began. Investors seemed very uncertain how the war would affect the economy and stock prices. Students participating in the SMG seemed more certain than the average investors, however, and were able to show excellent profits during the 10-week period that ended on April 17. We feel the participants learned some very valuable lessons this spring that will help them grow into intelligent and educated investors as adults – our primary goal,” said Dorothy Hughes, SMG coordinator at New Mexico State University.
Each team begins with an imaginary $100,000 and during a 10-week period each semester “plays” the market, making transactions based on the daily closing prices from all three stock exchanges. Players may buy, sell, short sell and short cover and all transactions are charged a 2 percent broker fee. Teams may buy on margin and are charged 7 percent interest. Teams receive 5 percent interest on cash balances and receive dividends that are paid on stocks in their portfolios during the game. The goal is to make as much money as possible. The portfolios and ranking reports are updated daily.
The Stock Market Game is the only stock market simulation-based educational program endorsed nationally by both the Security Industry Association and the Securities and Exchange Commission. Teams conduct all transactions and perform much of their research online, aided by a number of other educational resources and Web sites, many of which are only available to registered SMG teachers and students. Teachers have an administrative Web site where they can view their teams’ portfolios and have access to the learning Resource Center where many downloadable lesson plans and exercises are available. More information can be obtained by visiting the SMG Web site at: http://www.smgww.org.
Each semester the top state, regional, and essay contest winners in New Mexico are presented plaques and T-shirts and every participating teacher’s top team members are awarded certificates. Almost 130 awards were presented this spring. Both fall and spring winners are also invited to awards luncheons in Albuquerque and Las Cruces in May, Hughes said.
Other New Mexico winners included: Northern High Division, teacher Noel Hager and students from Sandia High School in Albuquerque; Southern High Division, teacher Pablo Martinez and students from University High School in Roswell; Middle School Division, teacher Tamara Wells-Banar and students from Los Alamos Middle School; and Elementary School Division, teacher Olen J. Hedges and students from Santa Rosa Elementary School.
Before the game each semester, Hughes offers training workshops, where the game rules and general investing information is provided. Anyone interested in participating in the workshops or the Stock Market Game can contact Hughes at (505) 646-3690 or at email@example.com.
Nationally, the Stock Market Game has been in operation for 26 years. More than 700,000 people participated last year in all 50 states. It is sponsored by the Securities Industry Foundation for Economic Education and receives financial support and the donation of teaching materials from many major corporations, brokerage firms and the three stock exchanges.