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Stock Investment Simulation Project, Unit 2 Assignment

This project is designed to provide you with direct exposure to online investment in stocks using the tools available at the How The Market Works (HTMW) web site, which is quite similar to utilizing an online brokerage account. This project provides an opportunity for you to learn how the stock market works by creating a portfolio of U.S. stocks with the objective of maximizing investment over a specified period of time.

In this simulation, the companies and their stocks are real, and the prices are current – a true simulation of the market – you are looking at the market here and now and the results you achieve represent what would have happened had you actually invested money in the stocks you chose. You will be given a hypothetical $100,000 at the outset of the simulation. Your goal is to invest that in stocks and produce as much wealth as possible by the end of the simulation. More important than how much you make is what you will learn.

Click here to read the overview of the entire project, which requires assignments in Units 2, 5, and 8.

• DIRECTIONS
• GUIDELINES
• REQUIRED SCREENSHOTS
• UNIT LEARNING OUTCOMES

Directions

1. Create an account and enter the LIM contest

1. 1. Follow the instructions given on the HTMW site to set up an account and to register in the contest I have set up. Use this link. (Links to an external site.) Make sure you are in the correct term’s contest.
   2. Click sign up and provide the information requested.
   3. Go to the Registration and Site Overview video (Links to an external site.), which should help to get you started.
   4. If asked for the amount of virtual cash that you wish to have in your account, enter $100,000. This is the default for the contest.
2. Trading stocks

When can I buy or sell stock? Note that you can only buy or sell stock when the market is open in NY, which is from 9:30 – 4 PM, Monday through Friday.

1. Strategy

Choose companies with which you are familiar – as a customer, as an employee, from a research paper in another class, etc. You might consider the following criteria in your preliminary research:

• Strong revenue growth
• Strong earnings growth
• Analyst ratings – what do the “experts” think?
• Is the price of the stock historically high or low?
• Diversification