Issue link: http://digital.copcomm.com/i/5139
Stock market lesson pays dividends Does the ringing mean it’s time for class to begin — or is it the Opening Bell? There’s excitement in the air as students open their laptops and begin trading stocks, bonds and mutual funds. Eduardo Lopez, a government and economics teacher at Roosevelt High School in Los Angeles, is proud that his students know how to read a financial ta- ble and understand the jargon of the stock market. When he began teaching four years ago he considered the stock market his weakest content area and wor- ried about how he would cover it. After attending a workshop sponsored by the California Council on Economic Education (CCEE), his class signed up for the council’s California State Univer- sity Stock Market Simulation Game. Teams of students invest a hypothetical $100,000 in stocks and mutual funds via an internet site and compete locally and statewide for awards. Last year his class came in 50th out of 500 schools. “The kids love it,” says Lopez, a member of United Teachers Los Angeles. “Pretty soon, they are speaking of splits and divi- dends, and they start talking about terms like opportunity loss. And the CCEE pro- vides a subscription to the Wall Street Jour- nal, so kids are reading in the paper to see which companies are up and coming. They realize that their investments are connect- ed to the real-life economy.” “Today, we had a loss of $40,” says stu- dent Peter Cuzul of his team, The Studs. “It’s frustrating, because we have only one stable stock and the others fluctuate. But it’s fun, and I’m learning how to in- vest and how to read charts of compa- nies. In the future, if I decide to invest in the market, I’ll know how.” The class is about to end and Lopez urges them to make trades before it’s too late. “If you want to compete, sometimes you have to risk it all,” Tony Pineda urges teammates on The Brokers, first-place team in the class. “We’d do a lot more research and be much more careful if it was real money,” says team member Carlos Gutierrez. “Maybe we’re lucky that it’s not.” Visit us online Experience the Stock Market Simulation Game for yourself at www. csusms.co .com. Keeping it real “How many of you want to buy a car?” asks David Ellington, a resource teacher at San Leandro High School. Every student raises his or her hand. When he asks students to name “hidden fees” that come with purchas- ing an automobile, no hands go up. The San Leandro Teachers Associa- tion member explains they wi l l also have to pay sales tax, inspection fees, insurance, warranty, vehicle registra- tion fees and maintenance costs. november 2009 | www.cta.org 23