1. Lets Play the Stock Market!!!

2. The purpose of this activity is for you to experience what it is like to invest your money into the stock market We are going to go through an example round and then we are going to start playing You will be given investment sheets that allow you to buy & sell stock I will give you the price of the stocks for each day

3. EXAMPLE #1 Do this one with me so you get the idea! Enter the #1 in the blank after Day Enter Sample in the blank after Name –That way you can refer back to this page to help guide you

4. Since we cannot sell any stock (since we haven’t bought any yet) leave the row labeled ‘Name of Stock Sold’ blank and move down into the ‘Name of Stock Bought’ row Everyone is going to start with $1,000.00 Lets pretend we are going to buy into GM The price of one share is $10 (enter that into the price blank), and we are going to spend all of our $1,000…so how many shares are we going to purchase??

5. We are going to buy 100 shares (enter that into the ‘No. of Shares’ blank) Multiply 10 (price of share) by 100 (number of shares we are buying) –10 x 100 = Enter $1,000 into the ‘Total Cost’ blank –You do not always have to use all your money, if you have some left over you will enter that into the ‘Cash Held’ blank

6. Since we are paying cash in the ‘Paid For’ box enter $1,000 where it says cash and leave the borrowed and the total spaces blank In the next row enter GM into the box labeled ‘Held at the End of Day: Name of Stock’ – this shows what stock we have after one day of trading What should we enter into the ‘Price’ & ‘No. of Shares’ boxes –10 & 100 Since we did not borrow any money and we have no cash on hand enter ‘0’ into those two boxes

7. EXAMPLE #2 Lets pretend we are going to borrow some money from the bank Start this out the same way we did Example #1 –Since we cannot sell any stock (since we haven’t bought any yet) leave the row labeled ‘Name of Stock Sold’ blank and move down into the ‘Name of Stock Bought’ row –Everyone is going to start with $1,000.00 –Lets pretend we are going to buy into GM

8. The price of one share is still $10 –Enter ’10’ into the price box This time lets say we want to buy 1,000 shares of GM stock –Enter ‘1,000’ into the No. of Shares box Multiply 10 (price of share) by 1,000 (no. of shares we are buying) –10 x 1,000

9. Enter $10,000 in the Total Cost box –Now we don’t have $10,000 to spend we only have $1,000, so we are going to need to borrow money from the bank In the Paid For box: –Enter $1,000 in the cash blank –Enter $9,000 in the borrowed blank –Enter $10,000 in the Total blank Your ‘Total Cost’ box & total from the ‘Paid For’ box MUST equal the SAME amount Since we still have no money left over enter ‘0’ into the ‘Cash Held’ box

10. NOW here is the part you MUST remember if you are borrowing money from the bank In the next row: –Enter ‘GM’ in the ‘Held at the end of the day’ box –Enter ‘10’ into the price box –Enter ‘1,000’ in the No. of shares box –Enter ‘$9,000’ in the Borrowed on Margin box –Enter ‘0’ in the Cash on Hand box When you sell your stock you MUST pay the bank back what you borrowed!!!!

11. Selling Stock When you want to sell your stock you fill out the top row -Enter the name of stock you are selling, what the new price is the day you are selling -Enter the number of shares you are selling -Multiple your Price by No. of Shares to get your total cost -If you borrowed any money enter how much you borrowed in the Margin Loan box -Subtract your Total Cost by your Margin Loan to see how much money you ended up with

12. ANY QUESTIONS??? ARE YOU READY???

13. Lets Get Started!!! Couple of tips first: –Enter all the stocks you are buying on one day on ONE sheet of paper –Take your time so you don’t make any mistakes –Check over your work –Talk to the people around you for help & ask me if you need help or have any questions –DON’T FORGET TO PAY BACK THE BANK

14. DAY 1 Name of Stock American Can (AC) American Telephone & Telegraph (AT&T) General Electric (GE) General Motors (GM) United States Steel (USS) Radio Corporation of America (RCA) Price for ONE Share $34.75 $144.88 $139.25 $10 $84.25 $2.50

15. DAY 2 Name of Stock American Can (AC) American Telephone & Telegraph (AT&T) General Electric (GE) General Motors (GM) United States Steel (USS) Radio Corporation of America (RCA) Price for ONE Share $73.25 $123 $182.50 $14.75 $106.88 $6.25

16. Day 3 Name of Stock American Can (AC) American Telephone & Telegraph (AT&T) General Electric (GE) General Motors (GM) United States Steel (USS) Radio Corporation of America (RCA) Price for ONE Share $104.25 $125.38 $196.50 $15 $94.50 $4.75

17. Day 4 Name of Stock American Can (AC) American Telephone & Telegraph (AT&T) General Electric (GE) General Motors (GM) United States Steel (USS) Radio Corporation of America (RCA) Price for ONE Share $160 $130.50 $320 $65.38 $122.63 $66.88

18. Day 5 Name of Stock American Can (AC) American Telephone & Telegraph (AT&T) General Electric (GE) General Motors (GM) United States Steel (USS) Radio Corporation of America (RCA) Price for ONE Share $292.50 $142.63 $326 $117.50 $126 $77.88* *Stock split. Add one share for each 5 shares of old stock

19. Day 6 Name of Stock American Can (AC) American Telephone & Telegraph (AT&T) General Electric (GE) General Motors (GM) United States Steel (USS) Radio Corporation of America (RCA) Price for ONE Share $49* $149.88 $83.88** $153.75 $157.38 $61.63 *4-for-1 split plus 2 shares stock divided. One share of old stock becomes 6 shares **4-for-1 split. One old share is now 4

20. Day 7 Name of Stock American Can (AC) American Telephone & Telegraph (AT&T) General Electric (GE) General Motors (GM) United States Steel (USS) Radio Corporation of America (RCA) Price for ONE Share $75 $178.63 $135.75 $138 $151.88 $101

21. Day 8 Name of Stock American Can (AC) American Telephone & Telegraph (AT&T) General Electric (GE) General Motors (GM) United States Steel (USS) Radio Corporation of America (RCA) Price for ONE Share $110.38 $193 $221.50 $203.75 $151.25 $420

22. Day 9 Name of Stock American Can (AC) American Telephone & Telegraph (AT&T) General Electric (GE) General Motors (GM) United States Steel (USS) Radio Corporation of America (RCA) Price for ONE Share $181.88 $335.63 $396.25 $181.88 $279.13 $101* *5-for-1 stock split

23. Day 10 Name of Stock American Can (AC) American Telephone & Telegraph (AT&T) General Electric (GE) General Motors (GM) United States Steel (USS) Radio Corporation of America (RCA) Price for ONE Share $86 $197.25 $168.13 $36 $150 $28

24. Time Chart Game Day 1 2 3 4 5 6 7 8 9 10 Real Time Close of the year 1921 Close of the year 1922 Close of the year 1923 Close of the year 1924 Close of the year 1925 Close of the year 1926 Close of the year 1927 Close of the year 192 Sept. 3, 1929 Sept. 13, 1929