The Stock Market Game - Buying Stocks

The Stock Market Game - Buying StocksOnce you have decided to invest in a stock you need to:Know the rules for investingKnow the ticker symbol for your stockCalculate how many shares you wish to buyPlace an order to buy the stockCheck the resultsHow to buy stocksThere 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 stocksYou cannot invest more than $60,000 in any one stock.The stock price must be over $5 a share

RulesTicker symbols are 3-4 letters and define the stockYou can find the ticker symbol on finance.yahoo.com Search for the companySee the tickerTicker Symbols

Dont simply buy 100 shares of every stock! Stock prices vary widely:Walmart (WMT) is ~$60 per share 100 shares is $6,000 Apple is (AAPL) is ~$525 per share 100 shares is $52,500Decide how much money you wish to invest and calculate the number of shares.You have $200,000 to spend! If you spend it $6,000 at a time then you will need to invest in 33 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

Calculating the Number of Shares to BuyLog in the stock market game website

Each team has a loginPlacing the Order

Click on Enter a TradePlacing an Order

Select Stock TradeOn the next screen click Buy, enter the ticker, the number of shares and click on Preview TradeLeave Order Type as Market and dont change the Limit Price

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.Placing an Order

You dont 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 xxxNeeds to be on the NYSE or NASDAQAlternatives to StocksTicker SymbolTracksUSOTracks the price of OilGLDTracks the price of GoldUGATracks the price of GasolineDOWTracks the price of the Dow Jones averageXLK, QTECTrack Tech StocksInvest the maximum amount you can ($200,000)Invest as quickly as you can.Remember there is a 2% commission to buy or sell shares. Dont do continual trades! Buy and hold unless something dramatic happens.Friday and Monday you will have time to invest in stocks.Things to Remember