Task
You and your team of advisors will be investing a hypothetical $50,000 for a client in a variety of stocks using an online simulator. Each of you will choose one of the roles listed below (although the roles may often overlap as you assist each other):
Scout - Responsible for finding new stocks to purchase, as well as completing the purchase and sale of the clients' stocks. Must create a detailed log for each stock purchase. Your rationale for each purchase should be based on solid economic and financial principals. In other words, insufficient reasons such as "I just had a good feeling about the company" or "Somebody told me it's a good company" will not be sufficient. You must explain why you believe each company's stock has the potential to grow by analyzing several pieces of financial information (such as the amount of debt, management, profit potential, etc.)
Analyst - Responsible for monitoring stocks purchased by integrating your own information with research supplied by the economist. Must communicate with the scouter when stocks should be sold and purchased. Will be required to create (using a spreadsheet or other organized electronic form) and maintain a log of stock sales. Your portion of the group's project will include an overall summary of the reasons you chose to sell or hold on to any given stock.
Economist (only complete this role if in a group of 3) - Responsible for monitoring current events (both company and the market as a whole), the financial calendar, and the state of the national economy. Must maintain communication with the analyst and researcher about any recent economic trends. Will keep a log of important changes in the economy and prepare a written or electronic (using Power Point or other teacher approved method) summary of the events that impacted the groups' decisions.
Each member's portion will be combined into a complete "Financial Planning Report" that will be submitted to your "client." The final product can be in either a written or electronic format (Power Point, etc.), must include an introduction that states the groups overall investment strategy and a conclusion that analyzes the success or failure of the strategy, and must have a professional appearance.
In addition to the requirements listed above, you must also adhere to the following criteria, as requested by your "client":
- Maintain a minimum of at least 5 stocks and 1 mutual fundin your portfolio.
- Invest your $100,000 in the stocks you have selected using the Investopedia online simulator. The simulator uses real-time data and allows you to purchase and sell stocks from any computer via the Internet.
- You are welcome to utilize other forms of investing, such as options and short selling, if you are willing to do the research on how they work. This is a more risky form of investing, but the return can be quite rewarding!