Students begin the stock market challenge

Seniors Rahul Balakrishnan and Abhi Gupta look over their stocks. The DECA Stock Market Challenge is an opportunity for students to invest in virtual stocks and will run until the end of the year.

DECA has begun its annual stock market challenge, an investment simulation game designed to help students explore the basics of stock trading.

Once students sign up for the challenge in small groups of two or three, they will receive a code that can be used to access the game. The stock market challenge simulates real investments; any publicly-traded stock can be bought and sold in various amounts. Students will be allowed to buy stocks from various industries, anything from telecommunications to biotechnology. The challenge will run until mid-December and is open to other high schools as well.

Juston Glass, the Director of Business & Entrepreneurship Program at the Upper School, believes that the stock market challenge is a great tool for students to learn more about business.

“I think its a low commitment, high reward activity. Here you can immerse yourself into economics and business,” Glass said. “The stock market can teach you a lot about not just investing but also how the economy is working and how the corporate world is functioning. You can spend 5 minutes in a week checking your portfolio or you can do 5 hours a day..”

Currently, over 90 students have signed up for the competition. Last year, there were 136 people involved in the challenge.

The team consisting of seniors Alex Tuharsky, Ashwath Thirumalai, and David Lin is currently ranked first within the school.

“We’re trying to determine the relative effects on the market of domestic policy,” Alex said in regards to his team’s investment strategy.

Many students believe that this simulation will help them learn more about the stock market in general. Rishabh Jain (12) believes that the challenge will help him learn more about healthy investments.

“I think the stock market challenge is a great way for students to learn more about investment techniques,” Rishabh said. “Because no real money is involved, people can make mistakes and try out new strategies without having to worry about losses.”

Many students are buying stock in Alibaba, a Chinese online retail company, which went public last Friday. Alibaba had the biggest initial public offering (IPO) in history, with a stock price closing over $90 the same day and is now valued more than social networking giant Facebook.

According to various experts in the field, buying stocks is tricky because there is no way to accurately predict the market. One specific stock might do well one day, but then sink  the next.

In addition, Glass cautioned that a short time frame makes it tough to decide which stocks would be most profitable.

“The stock market game is not designed for learning long term investment…[because] over four months you can’t get a full taste of the full stock market world,” Glass said.

In spite of its short time frame, the stock market challenge presents students with an opportunity to explore stock investments in an educational and informative manner.