MATH EDUCATION: Playing the markets

Local competitors join in stock selling simulation game

The New York Stock Exchange is watched by traders, brokers and the business-types worldwide. Research on stocks and next moves also are calculated by students nationwide.

In Nevada, approximately 17,000 elementary, middle and high school students participate in the Stock Market Simulation every year. For 10 weeks in the fall and 10 weeks in the spring, students compete for the highest return.

Students in math, social studies and economics classes break into teams of four, on average, and enter the market with a fictitious $100,000. They buy and sell through the session. The team that finishes with the most money, wins.

John Mundy, executive director of the Nevada Council on Economic Education, presented awards to Chaparral High, Sedway Middle, and Dondero and Christensen elementary schools in January for participation in the fall game.

Teams from Robert Bloom's classes at Chaparral and Laura Densford's classes Sedway swept all five places in their categories. Dondero teams placed first, second, third and fifth while Christensen crept in with a fourth-place finish in the elementary category.

The fall game began two years ago, but it's the 16th year for Nevada's spring game, which will begin Feb. 16. The simulation is open to all who wish to participate, no matter the age. And it's free. Team fees are paid out of a fund with the state audit and compliance division, where fines are collected from civil penalties for stock market fraud.

"Everybody loves that idea. The bad guys are paying for the kids' consumer educations," Mundy said. "And it's not drawing down any of the budget. It's found money."

Densford, a math teacher at Sedway, has participated in the game for the last three years. The simulation allows her to review sixth- and seventh-grade concepts with her class and introduce them to something new. Her first-place students are English as a Second Language students.

"It was exciting to come to math," Densford said. "Everyday I'd post who was doing the best. The kids love it."

Densford had about 45 teams participate in the fall simulation, and she plans on having some of the same students back for the spring game. This month, the students will start the simulation with more knowledge.

"It went by fast," said Antonio Sandifer, 13, Sedway student and member of the second-place team. "It was kind of difficult, because, at first, we weren't getting any of the (stocks)."

"It was kind of easy and kind of hard at the same time," added teammate Errick Davis, 13. "(But) it was fun working with other people in the stock market."

Sandifer and Davis, along with teammates, purchased stocks in K-Swiss, Toys "R" Us, the World Wrestling Entertainment Inc., McDonalds and Avon. The team researched trends, consumer preferences and the supply and demand of the companies they liked, to decide if they were viable. They purchased Avon as a strategic measure.

"A lot of people like to buy cosmetics and stuff," said Phil Eddy, 14, team member.

Competition keeps the game going, Mundy said. Although the students can't keep the money they make, they can win money for their school if they do well. The divisional sweep by Sedway earned them $250, given to Densford. Students receive T-shirts and certificates commemorating their achievement.

In the fall of 1998, the game went from paper-based, where students bubbled in their choices, to an Internet-based game, where students can trade whenever they want. Technology also has allowed the game to be played in real stock market time.

The Stock Market Simulation meets Clark County School District and Nevada standards for education in language arts, math, economics and social studies.

Aside from learning math and economics, students of all skill levels are doing well. Top teams in the fall game earned between $4,076 and $66,333 beyond their $100,000 starting money. It's inspired some participants to go into finance or teaching a subject touched on during the game, Mundy said.

"Brokers call me or they call (Densford) and say 'What are the kids buying?' " Mundy said. "I tell them to go and do their jobs."

The Stock Market Simulation is open to anyone. Teachers new to the game are required to participate in a preliminary how-to workshop. The last workshop for the spring session is set for Saturday from 8 a.m. to 5 p.m. at the Western High School/CCSN Hi-Tech Center in Room 113. Information on future workshops and registration can be found on the Web site at www.nevadasms.com.


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