Jan. 4, 2007 by Dorothy Hughes NMSU News Center
Students from Thoreau and Albuquerque, N.M., have taken top honors in the fall 2006 Stock Market Game sponsored by the New Mexico State University College of Business, the New Mexico Securities Division and Cabrera Capital Markets Inc.
The State Championship in the Portfolio competition was snagged by a team from Thoreau High School and consisted of Fetisha Martinez (captain), Jamaal Anderson, Denny Charley, Dereck Smith, and Breana Yazzie, under the direction of teacher Bruce Lewis. The State Champion in the Strategy Summary writing competition was Kristin Marquardt, a student at the Career Enrichment Center in Albuquerque, who was advised by teacher Ed Lucero.
The Portfolio competition is based on the total value of the team’s equity in its portfolio. The new writing competition began a year ago. It requires teams to discuss the strategy they employed, followed by what strategy they learned would be most effective in real life using real money with an unlimited period of time. First place in each of four regions of New Mexico were also awarded in both categories.
A separate Doña Ana County competition also took place in which the top teams in different grade levels were recognized by the FirstLight Federal Credit Union. Each team member was awarded a $50 savings account for their efforts in the Portfolio competition. The top Doña Ana County high school team consisted of Alexandra Calaunan, Mariam Sanogo and Miguel Ruiz, students under teacher Philip C. Daly at Las Cruces High School. First place at the elementary level were Joshua Rhodes, Christopher Serna, Graham Waller and Roman Dennis, students at Hillrise Elementary, advised by teacher Dennis Woodard.
The Stock Market Game program is a computer-simulated competition played this past semester by almost 1,800 New Mexico participants.
Dorothy Hughes, Stock Market Game coordinator at NMSU, said, “The stock market had its usual share of ups and downs, but we felt students were especially interested to watch how the economy reacted to the national elections that took place in November. The top teams in the portfolio competition held several little-known stocks, demonstrating how important the research component of the program has become. In the strategy summaries submitted, the students showed an excellent understanding of the difference between the strategies needed to succeed in our 10-week program versus those which will work best in real life.”
SMG teams begin with an imaginary $100,000 and during a 10-week period each semester the competitors make transactions with real stocks and mutual funds traded on the three major U.S. stock exchanges for which they are given actual closing prices. Players may buy, sell, short sell, and short cover. 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 paid on stocks in their portfolios during the game. The goal is to increase the value of the portfolio as much as possible in 10 weeks. 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 industry (the Securities Industry and Financial Markets Association) and the regulators of the industry (the Securities and Exchange Commission). Teams conduct all of their transactions and perform much of their research online. They are aided by a number of other educational resources and Web sites, many of which are available only to registered SMG teachers and students.
Teachers can view their teams’ portfolios, take an online tutorial, plan lessons, and access the Learning Resource Center where many lesson plans and exercises are available. Teachers can also now order a customized 12-week lesson plan, based on the grade level and subject they teach. More information is available at: http://www.stockmarketgame.org.
Each semester the top state and regional winners in both competitions in New Mexico are presented with plaques, T-shirts and certificates, and every participating teacher’s top team members receive certificates. Almost 200 awards were presented this fall. In addition, all winners from both semesters will be invited to attend one of the annual awards luncheons held the first week of May in Albuquerque and Las Cruces. All state and regional winners from the fall 2006 SMG are listed on the NMSU Stock Market Game home page under Recent Winners: http://business.nmsu.edu/nmsusmg.
Before the game each semester, Hughes offers training workshops, during which game rules, research techniques, classroom uses of the program, and general investing information are provided. Anyone interested in participating can call Hughes at (505) 646-3690, e-mail her at firstname.lastname@example.org or log onto the main Web site and learn more about the program.