Stock Market Simulation

FBLA hosts Stock Market Simulation Game

Future Business Leaders of America (FBLA) hosted a Stock Market Simulation to recognize American Enterprise Day on Wednesday, Nov. 15.

The simulation was part of the American Enterprise project, one of FBLA’s chapter projects. Vice president of projects senior Selena Shi, treasurer sophomore Nicole Chiang and secretary senior Harrison Sun helped run the simulation and teach the club members more about stock investments.

“We got the idea of the stock market simulation from section officer training and [we] think it’s very interesting to use this idea [for our chapter] because it fits the topic of investing,” Shi said. “This meeting is intended to help club members take responsibility for their own financial decisions and learn that they can win big or lose big if they invest a lot, or just invest safely.”

Club members formed groups of three and assumed positions as investors. They were given a simulated $20,000 to start investing in company stocks from McDonalds, Starbucks and Chipotle. Club officers voiced the three companies in order for the groups to start making investments.

“I thought [the simulation] gave an insight on how the stock market actually works and how you should invest in companies. You should probably know about [the companies’ stocks] if you want to invest big in companies such as Chipotle, McDonalds and Starbucks,” club member freshman Kevin Yuen said. “I definitely will use this [experience] in the future to invest in the stock market, but I need to learn how companies like these operate so I don’t just guess on which company to invest in.”

There were three rounds of different scenarios, and for each round, the groups had to invest all their money within three minutes. By the end of each round, they were given new scenarios and told their balances which were determined by the investments they made.

“I think that the simulation was really well thought out and it was a good experience learning about the stock market,” club member sophomore Laksh Kalra said. “I learned that you have to prepare a lot and have researched in order to invest smartly. You really have to read [about] the companies you plan to invest in to ensure that they’re profitable.”

By Jacob Khuu, staff writer
Photo Courtesy of Erin Tan