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The Stock Market Game - Buying Stocks

The Stock Market Game - Buying Stocks. How to buy stocks…. Once you have decided to invest in a stock you need to: Know the rules for investing Know the “ticker” symbol for your stock Calculate how many shares you wish to buy Place an order to buy the stock Check the results. Rules.

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The Stock Market Game - Buying Stocks

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  1. The Stock Market Game - Buying Stocks

  2. How to buy stocks… • Once you have decided to invest in a stock you need to: • Know the rules for investing • Know the “ticker” symbol for your stock • Calculate how many shares you wish to buy • Place an order to buy the stock • Check the results

  3. Rules • There are a lot of rules, but the key rules are: • You must buy at least 100 shares of a stock. • You must invest in at least 4 different stocks • You cannot invest more than $60,000 in any one stock. • The stock price must be over $5 a share

  4. Ticker Symbols • Ticker symbols are 3-4 letters and define the stock • You can find the ticker symbol on finance.yahoo.com • Search for the company • See the ticker

  5. Calculating the Number of Shares to Buy • Don’t simply buy 100 shares of every stock! • Stock prices vary widely: • Walmart (WMT) is ~$70 per share – 100 shares is $7,000 • Apple is (AAPL) is ~$430 per share – 100 shares is $43,000 • Decide how much money you wish to invest and calculate the number of shares. • You have $200,000 to spend! If you spend it $7,000 at a time then you will need to invest in 28 companies. • Once you know how much you want to invest, divide it by the share price (finance.yahoo.com) and buy that many shares! • If I want to put $20,000 into Walmart I would buy 20,000/60 = 333 shares

  6. Placing the Order • Log in the stock market game website • Each team has a login

  7. Placing an Order • Click on “Enter a Trade”

  8. Placing an Order • Select “Stock Trade” • On the next screen click “Buy”, enter the ticker, the number of shares and click on “Preview Trade” • Leave “Order Type” as Market and don’t change the “Limit Price”

  9. Placing an Order • Check the Company name and number of shares. If correct, type your SMG password and click on “Confirm Trade” • You will get a confirmation number.

  10. Alternatives to Stocks • You don’t need to just invest in companies. There are funds that track the prices of things. You can invest in those just like you do stocks. Some examples are: • Simply do a finance.yahoo.com search for “ETF for xxx” • Needs to be on the NYSE or NASDAQ

  11. Things to Remember • Invest the maximum amount you can ($200,000) • Invest as quickly as you can. • Remember there is a 2% commission to buy or sell shares. Don’t do continual trades! Buy and hold unless something dramatic happens.

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