Learning Stock Market Builds Students’ Confidence

By Larissa Lytwyn

Each year, Reed Intermediate School teacher Elizabeth Stevens encourages her students to participate in the Stock Market Game, a national competition that teaches students about American economics though providing classrooms with the tools to simulate Wall Street.

Students break into three-to-five-member teams consisting of captain, treasurer, secretary, and researcher.

Sessions are divided into fall, which ran last year from October 6 to December 12, and spring, which ran from February 23 to April 30.

Armed with a beginning budget of (an imaginary) $100,000, the team could trade any stocks listed on NASDAQ and the New York or American stock exchanges.

Teams could buy or sell, sell short and cover short sales. All transactions involved a two percent broker’s free.

One of Reed Intermediate School’s teams, comprised of sixth grade Captain Samantha Allen, Treasurer Annie Donnelly, Secretary Zoe DeStories, and Researchers Bianca Crudo and Maggie Sullivan, won second place in their grade-based regional division and fifth place regionwide for the spring game.

“The Stock Market Game is a wonderful way for students to adopt real-life skills,” noted Ms Stevens.

The girls said their work led them to some surprising findings.

“It was funny learning how some stocks weren’t as good as we had hoped,” said Bianca. “I had thought IBM and Abercrombie & Fitch would do well, but they didn’t do as good as we had expected.”

“I thought Starbucks would do well, but it didn’t either,” added Zoe.

Annie said that her father, a banker, often lent sound advice on “hot stocks.”

“He knew what corporations were doing better than others,” she said.

Bianca said her grandparents play the stock market regularly. “They are always tuned to CNN!” she laughed.

As for the stocks that did well, Peoples Securities, Inc and Tiffany & Co were reliably solid, said Bianca.

“They didn’t change all that dramatically,” she explained. “They were steady.”

But did their dive into real-world applications make any of the team members more self-assured of their abilities in certain academic subjects, such as math?

“While math is still definitely not my favorite subject,” admitted Zoe with a sheepish smile, “I do think I’ve gotten a better understanding of money. I feel more confident about those kinds of things.”

The other students agreed.

“As captain, my job was overseeing everything, and I liked that,” said Samantha. “I learned a lot.” Added Ms Stevens, “We also introduce students to check-book balancing and related real-life skills. The Stock Market Game can really bring all of that together!”

The students also said that doing the project expanded their general knowledge of the world around them.

“I feel more confident in math, and I read the newspaper more,” said Maggie.

While the top prize in the region was a trip to the New York Stock Exchange, all participants received a certificate of achievement.

The group also traveled to New York City on June 2. “The News-Times [co-sponsor of the competition] planned an adventurous scavenger hunt in the financial district!” said Ms Stevens. “Then we went to South Street Seaport for lunch and shopping. After a ride on the Staten Island ferry, we headed home. It was a wonderful day!”

School registration costs $10 per team. Adults outside the education system may also participate at a cost of $30 per team.