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March 15, 2001
Buying Low, Selling High
By Chris Cobitz
The stock market is a major indicator of economic prosperity in our society. In 1929 it caused the worst depression our economy has ever seen, and it is the driving force behind much of the Internet today. Indeed, growth of high-tech industries is often fueled by speculation, which drives the prices of these stocks higher. Unfortunately, skill at playing the stock market is a bit hard won and not as straightforward as it might seem after practicing a few trades. Thorough knowledge of the purpose and meaning behind the fluctuating numbers is important, and key to teaching this point is gaining student interest and providing experiences that fix conceptual knowledge with exciting activities. This roundup of stock market software and Web sites just might fit that bill by offering hands-on applications of economic principles and real-world math practice.
Now, the same high-quality graphics technology that produced games like Tomb Raider and The 7th Guest is available in stock market simulations. However, some of these offerings are based on the Internet to take advantage of actual economic fluctuations, or to allow for competition between remote classes of students. Due to the need for faster connectivity, Web graphics are not yet as impressive as those found on CDs.
Common to all simulations reviewed here is the task of trading stocks, with variations appearing mainly in trading format. From the CD-based Day Trader 2001 that utilizes a predetermined set of market fluctuations, to Web-based simulations Investment Challenge and The Stock Market Game that follow real market conditions, students are introduced to the realities of rapidly appreciating and depreciating stock value.
Day Trader 2001 offers a mix of predetermined market fluctuations with real-world pricing, a combination that helps students learn the market using a realistic context without being tied to minute-by-minute stock reports. Investment Challenge uses real-time market data that provides an exciting but not necessarily appropriate activity for students, given the amount of time and concentration required to follow real markets. The Stock Market Game draws on stock data provided after close of market, thus allowing students to make trading decisions after the clamor of the market subsides. Investment Challenge and The Stock Market Game are both national contests that generally run for a period of ten weeks during the spring and fall semesters. These online events encourage the development of teams for extended national and statewide competition.
When using any simulation product, be aware that curriculum materials "donated" by a company may cause a student to participate in promotional activities. At least one of the simulations we initially surveyed encouraged students (with parental permission) to open a real stock account. This could have legal ramifications; therefore, this product was omitted from our review.
See the Comparison of Stock Market Games
Read other articles from the March issue
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