Lets Play the Stock
Market!!!
• The purpose of this activity is for you to
experience what it is like to invest your
money into the stock market
• We are going to go through an example
round and then we are going to start playing
• You will be given investment sheets that
allow you to buy & sell stock
• I will give you the price of the stocks for each
day
EXAMPLE #1
• Do this one with me so you get the idea!
• Enter the #1 in the blank after Day
• Enter Sample in the blank after Name
– That way you can refer back to this page to
help guide you
• Since we cannot sell any stock (since we
haven’t bought any yet) leave the row
labeled ‘Name of Stock Sold’ blank and
move down into the ‘Name of Stock
Bought’ row
• Everyone is going to start with $1,000.00
• Lets pretend we are going to buy into GM
• The price of one share is $10 (enter that
into the price blank), and we are going to
spend all of our $1,000…so how many
shares are we going to purchase??
• We are going to buy 100 shares (enter
that into the ‘No. of Shares’ blank)
• Multiply 10 (price of share) by 100
(number of shares we are buying)
– 10 x 100 =
• Enter $1,000 into the ‘Total Cost’ blank
– You do not always have to use all your
money, if you have some left over you will
enter that into the ‘Cash Held’ blank
• Since we are paying cash in the ‘Paid For’ box
enter $1,000 where it says cash and leave the
borrowed and the total spaces blank
• In the next row enter GM into the box labeled
‘Held at the End of Day: Name of Stock’ – this
shows what stock we have after one day of
trading
• What should we enter into the ‘Price’ & ‘No. of
Shares’ boxes
– 10 & 100
• Since we did not borrow any money and we have
no cash on hand enter ‘0’ into those two boxes
EXAMPLE #2
• Lets pretend we are going to borrow some
money from the bank
• Start this out the same way we did Example
#1
– Since we cannot sell any stock (since we
haven’t bought any yet) leave the row labeled
‘Name of Stock Sold’ blank and move down
into the ‘Name of Stock Bought’ row
– Everyone is going to start with $1,000.00
– Lets pretend we are going to buy into GM
• The price of one share is still $10
– Enter ’10’ into the price box
• This time lets say we want to buy 1,000
shares of GM stock
– Enter ‘1,000’ into the No. of Shares box
• Multiply 10 (price of share) by 1,000 (no.
of shares we are buying)
– 10 x 1,000
• Enter $10,000 in the Total Cost box
– Now we don’t have $10,000 to spend we only
have $1,000, so we are going to need to borrow
money from the bank
• In the Paid For box:
– Enter $1,000 in the cash blank
– Enter $9,000 in the borrowed blank
– Enter $10,000 in the Total blank
• Your ‘Total Cost’ box & total from the ‘Paid
For’ box MUST equal the SAME amount
• Since we still have no money left over enter
‘0’ into the ‘Cash Held’ box
• NOW here is the part you MUST remember
if you are borrowing money from the bank
• In the next row:
– Enter ‘GM’ in the ‘Held at the end of the day’
box
– Enter ‘10’ into the price box
– Enter ‘1,000’ in the No. of shares box
– Enter ‘$9,000’ in the Borrowed on Margin box
– Enter ‘0’ in the Cash on Hand box
• When you sell your stock you MUST pay
the bank back what you borrowed!!!!
Selling Stock
When you want to sell your stock you fill out the top
row
-Enter the name of stock you are selling, what the
new price is the day you are selling
-Enter the number of shares you are selling
-Multiple your Price by No. of Shares to get your
total cost
-If you borrowed any money enter how much you
borrowed in the Margin Loan box
-Subtract your Total Cost by your Margin Loan to
see how much money you ended up with
• ANY QUESTIONS???
• ARE YOU READY???
Lets Get Started!!!
• Couple of tips first:
– Enter all the stocks you are buying on one
day on ONE sheet of paper
– Take your time so you don’t make any
mistakes
– Check over your work
– Talk to the people around you for help & ask
me if you need help or have any questions
– DON’T FORGET TO PAY BACK THE BANK
DAY 1
•
•
•
•
•
•
Name of Stock
American Can (AC)
American Telephone
& Telegraph (AT&T)
General Electric (GE)
General Motors (GM)
United States Steel
(USS)
Radio Corporation of
America (RCA)
Price for ONE Share
• $34.75
• $144.88
• $139.25
• $10
• $84.25
• $2.50
DAY 2
•
•
•
•
•
•
Name of Stock
American Can (AC)
American Telephone
& Telegraph (AT&T)
General Electric (GE)
General Motors (GM)
United States Steel
(USS)
Radio Corporation of
America (RCA)
• Price for ONE Share
• $73.25
• $123
• $182.50
• $14.75
• $106.88
• $6.25
Day 3
•
•
•
•
•
•
Name of Stock
American Can (AC)
American Telephone
& Telegraph (AT&T)
General Electric (GE)
General Motors (GM)
United States Steel
(USS)
Radio Corporation of
America (RCA)
• Price for ONE Share
• $104.25
• $125.38
• $196.50
• $15
• $94.50
• $4.75
Day 4
•
•
•
•
•
•
Name of Stock
American Can (AC)
American Telephone
& Telegraph (AT&T)
General Electric (GE)
General Motors (GM)
United States Steel
(USS)
Radio Corporation of
America (RCA)
• Price for ONE Share
• $160
• $130.50
• $320
• $65.38
• $122.63
• $66.88
Day 5
•
•
•
•
•
•
Name of Stock
American Can (AC)
American Telephone
& Telegraph (AT&T)
General Electric (GE)
General Motors (GM)
United States Steel
(USS)
Radio Corporation of
America (RCA)
• Price for ONE Share
• $292.50
• $142.63
• $326
• $117.50
• $126
• $77.88*
*Stock split. Add one share for each 5 shares of old stock
Day 6
•
•
•
•
•
•
Name of Stock
American Can (AC)
American Telephone
& Telegraph (AT&T)
General Electric (GE)
General Motors (GM)
United States Steel
(USS)
Radio Corporation of
America (RCA)
• Price for ONE Share
• $49*
• $149.88
• $83.88**
• $153.75
• $157.38
• $61.63
*4-for-1 split plus 2 shares stock divided. One share of old stock becomes 6
shares
**4-for-1 split. One old share is now 4
Day 7
•
•
•
•
•
•
Name of Stock
American Can (AC)
American Telephone
& Telegraph (AT&T)
General Electric (GE)
General Motors (GM)
United States Steel
(USS)
Radio Corporation of
America (RCA)
• Price for ONE Share
• $75
• $178.63
• $135.75
• $138
• $151.88
• $101
Day 8
•
•
•
•
•
•
Name of Stock
American Can (AC)
American Telephone
& Telegraph (AT&T)
General Electric (GE)
General Motors (GM)
United States Steel
(USS)
Radio Corporation of
America (RCA)
• Price for ONE Share
• $110.38
• $193
• $221.50
• $203.75
• $151.25
• $420
Day 9
•
•
•
•
•
•
Name of Stock
American Can (AC)
American Telephone
& Telegraph (AT&T)
General Electric (GE)
General Motors (GM)
United States Steel
(USS)
Radio Corporation of
America (RCA)
*5-for-1 stock split
• Price for ONE Share
• $181.88
• $335.63
• $396.25
• $181.88
• $279.13
• $101*
Day 10
•
•
•
•
•
•
Name of Stock
American Can (AC)
American Telephone
& Telegraph (AT&T)
General Electric (GE)
General Motors (GM)
United States Steel
(USS)
Radio Corporation of
America (RCA)
• Price for ONE Share
• $86
• $197.25
• $168.13
• $36
• $150
• $28
Time Chart
Game Day
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10
Real Time
Close of the year 1921
Close of the year 1922
Close of the year 1923
Close of the year 1924
Close of the year 1925
Close of the year 1926
Close of the year 1927
Close of the year 192
Sept. 3, 1929
Sept. 13, 1929