# The Stock Market Game - Buying Stocks. Once you have decided to invest in a stock you need to: 1.Know the rules for investing 2.Know the ticker symbol.

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The Stock Market Game - Buying Stocks

Once you have decided to invest in a stock you need to: 1.Know the rules for investing 2.Know the ticker symbol for your stock 3.Calculate how many shares you wish to buy 4.Place an order to buy the stock 5.Check the results How to buy stocks…

There are a lot of rules, but the key rules are: –You must buy at least 100 shares of a stock. –You must invest in at least 4 different stocks –You cannot invest more than \$60,000 in any one stock. –The stock price must be over \$5 a share Rules

Ticker symbols are 3-4 letters and define the stock You can find the ticker symbol on finance.yahoo.com –Search for the company –See the ticker Ticker Symbols

Dont simply buy 100 shares of every stock! Stock prices vary widely: Walmart (WMT) is ~\$70 per share – 100 shares is \$7,000 Apple is (AAPL) is ~\$430 per share – 100 shares is \$43,000 Decide how much money you wish to invest and calculate the number of shares. –You have \$200,000 to spend! If you spend it \$7,000 at a time then you will need to invest in 28 companies. –Once you know how much you want to invest, divide it by the share price (finance.yahoo.com) and buy that many shares! If I want to put \$20,000 into Walmart I would buy 20,000/60 = 333 shares Calculating the Number of Shares to Buy

Click on Enter a Trade Placing an Order

Select Stock Trade On the next screen click Buy, enter the ticker, the number of shares and click on Preview Trade Leave Order Type as Market and dont change the Limit Price Placing an Order

Check the Company name and number of shares. If correct, type your SMG password and click on Confirm Trade You will get a confirmation number. Placing an Order

You dont need to just invest in companies. There are funds that track the prices of things. You can invest in those just like you do stocks. Some examples are: Simply do a finance.yahoo.com search for ETF for xxx –Needs to be on the NYSE or NASDAQ Alternatives to Stocks Ticker SymbolTracks USOTracks the price of Oil GLDTracks the price of Gold UGATracks the price of Gasoline DOWTracks the price of the Dow Jones average XLK, QTECTrack Tech Stocks

Invest the maximum amount you can (\$200,000) Invest as quickly as you can. Remember there is a 2% commission to buy or sell shares. Dont do continual trades! Buy and hold unless something dramatic happens. Things to Remember

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