Torrance, CA (May 21, 2012): During a part of each semester, BMHS economics teacher Susan Strauss sets up her classroom like a stock market as part of simulating what goes on at places like Wall Street in New York. Students become brokers, bankers, and investors. Below is Struass' account of what goes on in her classroom during this 5-day simulation.
"Walking into my fifth period Economics class is like walking into a beehive of activity as only seen on Wall Street. There is a stock exchange with four stock brokers and there are two banks. The majority of the students are investors, each of whom is given $5,000. Each investor has a "balance sheet" on which they record their "buys" and "sells" of stocks and their bank deposits and loan amounts. The object is for each investor to make as much profit as possible. Behind the seats of the stock borkers is a ticker tape with a listing of 15 stocks that the investors may buy, and behind the seats of the bankers are the interest rates that they are offering for deposits and the interest rates they are charging for loans. In addition, there is a student who is the commisioner of the lottery who sells lottery tickets and pays out "money" to the winners."
"At any time during the simulation, there are students in line buying and selling their stocks, or they are at the banks making deposits and taking out loans. And, of course, there are those who challenge lady luck by buying lottery tickets. The stock prices are determined by the demand for them, which is calculated by the records of buys and sells that the stockbrokers keep. At some point, students figure out that if they buy a large number of stocks the price will likely go up and they will profit. The most astute investors are the ones who borrow large amounts of money from the banks and invest that in stocks. Also incorporated into the simulation are the stock splits, hostile takeovers, and the effects of external factors such as a strike or a crop failure."
"After five days of ups and downs, jubilation and disappointment, the "game" comes to an end. The student who makes the most profit wins, and of course, the stockbrobers and bankers receive special commendations for the valuable services they provided. Hopefully, now, when these students hear news about the stock market or interest rates, they will be able to relate with the concepts and become more interested and excited about business and economics."