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Friday, 09 May 2008 |
Students study stocks
By KAY LOUTH
Staff Writer
ST. MARYS – It's only on paper, but some Memorial High School seniors are considerably wealthier now than when they started school this year.
Students in Mike Jay's American government class were handed $10,000 in imaginary money and told to invest it the stock market. Michael Pardon, the top investor, brought in a $4,242 return in six months. His stock pick was Darden Restaurants, the parent company of Olive Garden and Red Lobster. The biggest loser in the group was Derek Backs, who ended up losing $1,862 after putting his dollars into Solomon Technologies, an automotive components manufacturer. His loss earned him the Outhouse Award and a toilet seat trophy.
Jay uses the stock market game as a learning tool to help advance the student's financial literacy.
“We try to get them ready to leave the nest,” Jay said.
The financial literacy education also includes a look at saving and different types of investments.
“Fifteen to 20 percent of the year is spent on life preparation (education),” Jay told The Evening Leader. “Students were limited to only trade during the game to discourage a day-trading mentality, which is not a successful strategy for most investors.”
Students also got advise from local investment professionals who came to class and presented basic information on types of investments and how to research stocks. They also gave the students investment tips as well. These sponsors also chipped in and provided prizes, including gift certificates, hats and shirts for the top investors.
“They're all seniors and this is to give them options when they get out on their own,” Jay said.
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Last Updated ( Wednesday, 14 May 2008 )
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