SMG Investing for the Core


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Written and co-presented by Vincent Young, Director of Curriculum Initiatives, and Karla Helgans, Assistant Director National SMG Program, on January 29, 2013 to teachers participating in a workshop conducted by the Center of Economics and Financial Education at Florida State College. This slideshow describes how the SIFMA Foundation Stock Market Game program engages classrooms in meaningful real world applications of Common Core Standards and life skills.

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  • Provide these hints if your audience has trouble guessing the answer: The bite-sized pieces of chocolate have a distinctive shape, commonly described as flat-bottomed teardrops. These  chocolates are wrapped in squares of lightweight aluminum foil with a narrow strip of paper protruding from the top.3. The candy got its name by the machine that makes them, which made kiss sounds and appears to "kiss" the conveyor belt onto which the chocolate is dispensed.Source:'s_Kisses
  • Provide a brief history of the Kiss and the Hershey Company:The Hershey Chocolate Company grew rapidly and began introducing new products. Hershey’sKisses appeared in 1907, Mr. Goodbar in1925, and Hershey’s Syrup in 1926. But the company’scontinued growth would require large inflows of new funds. To raise the money he needed, MiltonHershey decided to incorporate the business and sell stock to the public. A corporation can raisesubstantial sums from investors because it offers them attractive features. One of them is “limitedliability,” which means an investor’s potential loss is limited to the amount invested in thecompany’s stock. Another attractive feature is a corporation’s long life. A corporation is aseparate legal entity, just like a person, so it lives on even if its founders or managers leave ordie.In 1927, the business became a corporation and changed its name to the Hershey ChocolateCorporation. It sold stock to the public to fund its continued growth. In 1968 it changed its name tothe Hershey Foods Corporation to recognize its growing line of products. Its name changed onceagain in 2005, when it became the Hershey Company to reflect its global growth (stock symbol:HSY).Source: Middle School Core Lesson: “What is a Company?”
  • Provide these hints if your audience has trouble guessing the answer: Created by an Austrian immigrant on Manhattan’s Lower Eastside.The inventor originally wanted to create a candy that didn’t melt so easily and that would be an economical alternative to chocolates.The inventor gave the candy his daughter’s nickname.Source:
  • Provide a brief history of the Tootsie Roll and Tootsie Roll Industries:In 1896 its founder Leo Hirschfeld, an Austrian immigrant to the United States, started his candy business in a small shop located in New York City.[2] He wanted a "cherry" candy that would not melt easily in the heat, and would be an economical artificial alternative to traditional chocolates.[citation needed] He named the candy after the nickname of his daughter, Clara "Tootsie" Hirschfeld.[2] By 1905, production moved to a five-story factory. In 1917 the name of the company was changed to The Sweets Company of America, and the business became a listed company in 1922. In 1931 the Tootsie Pop—a lollipop with Tootsie Roll filling—was invented. Its low price made it popular in the Depression era. During World War II, Tootsie Rolls became a standard part of American soldiers' field rations, due to the hardiness of the candy under a variety of environmental conditions.Source:
  • Ask the audience (and tally the responses):How many prefer a Hershey’s Kiss? How many prefer a Tootsie Roll?Review the tally and ask “If I were to give each of you $1000 to invest in a single company, which one would you choose and why?”At the conclusion of the discussion, inform teachers that they’ve just had a typical SMG discussion.
  • Identifying popular products (and services), comparing their popularity (brand recognition), collecting data about them, and then evaluating them are among the core activities of students playing the Stock Market Game. In this exercise, students become information creators instead of just consumers.
  • The Stock Market Game is a national program distributed locally by not-for-profit councils on economic education, universities, state securities agencies, and like non-profit organizations.
  • A committee of financial industry professionals, classroom teachers, economic educators, and veteran players of the Stock Market Game were gathered and asked to answer this question: What does it mean to successfully complete the Stock Market Game? Their responses identified 12 essential topics that students should be familiar with upon successful completion of the Stock Market Game. Topics range from technical items like identifying tickers symbols and reading stock quotes to more conceptual topics like defining risk and diversity to reflective activities that ask: How did you do?
  • The CCSS ELA writers are careful to say that the ELA standards are not content standards but skills-based. In financial literacy subjects like economics, personal finance, business, and Family Consumer Sciences (to name a few), SMG introduces subject specific concepts like compound interest, stock quotes, and differentiating between parent companies, subsidiaries, and brands. SMG students interpret stock quotes, read historic price charts and tables, and synthesize information from a broad range of sources to draw conclusions and make decisions. They also build persuasive arguments to convince teammates to invest in specific companies.
  • There are 12 Core lessons in SMG. These are the 12 essential topics a committee of veteran SMG teachers, industry professionals, and educators felt students needed to understand before their teacher could say they successfully played SMG. Each Core lesson has a math and ELA component.
  • Hand out copies of this newsletter. Ask teachers to read it. The newsletter is unique because it uses a creative narrative approach to provide informational text.
  • Have teachers respond to questions then revisit them and ask which standards does this question meet?CCSS Correlations:CCSS.ELA-Literacy.RH.6-8.7 Integrate visual information (e.g., in charts, graphs, photographs, videos, or maps) with other information in print and digital texts. (Grade 6-8 ELA History Social Studies)CCSS.ELA-Literacy.RI.6.7 Integrate information presented in different media or formats (e.g., visually, quantitatively) as well as in words to develop a coherent understanding of a topic or issue. (Grade 6 Reading Informational Texts, Grades 5,7,8 have similarly worded standard)CCSS.ELA-Literacy.RI.6.4 Determine the meaning of words and phrases as they are used in a text, including figurative, connotative, and technical meanings. (Grade 6 Reading Informational Texts, Grades 5,7,8 have similarly worded standard)
  • Review last fall’s (2012) Investwrite questions.
  • SMG is most effective meeting anchors 1, 2, 4, 6, 7, 8, 9, and 10.
  • SMG meets 1, 2, 6, 7, 8, 9, 10To build a foundation for college and career readiness, students need to learn to use writing as a way of offering and supporting opinions, demonstrating understanding of the subjects they are studying, and conveying real and imagined experiences and events. They learn to appreciate that a key purpose of writing is to communicate clearly to an external, sometimes unfamiliar audience, and they begin to adapt the form and content of their writing to accomplish a particular task and purpose. They develop the capacity to build knowledge on a subject through research projects and to respond analytically to literary and informational sources. To meet these goals, students must devote significant time and effort to writing, producing numerous pieces over short and extended time frames throughout the year.
  • SMG achieves standards 1, 2, 3, 4, 5, 6Note on range and content of student speaking and listeningTo build a foundation for college and career readiness, students must have ample opportunities to take part in a variety of rich, structured conversations—as part of a whole class, in small groups, and with a partner. Being productive members of these conversations requires that students contribute accurate, relevant information; respond to and develop what others have said; make comparisons and contrasts; and analyze and synthesize a multitude of ideas in various domains.New technologies have broadened and expanded the role that speaking and listening play in acquiring and sharing knowledge and have tightened their link to other forms of communication. Digital texts confront students with the potential for continually updated content and dynamically changing combinations of words, graphics, images, hyperlinks, and embedded video and audio.
  • The important distinction is “There is a world of difference between a student who can summon a mnemonic device to expand a product such as (a + b)(x + y) and a student who can explain where the mnemonic comes from.” It basically says that memorizing your times table is no longer enough. It acknowledges that lasting mathematical success is based on understanding of why 2x2 is 4 and not just blind acceptance that it is. SMG achieves this standard by helping students understand fundamental math concepts through tactile experiences with concrete goals. For example, the make predictions on stock price based on historical price charts.
  • Students do this every time they meet to discuss strategies and make trades.
  • Our core lessons are correlated to National CCSS in math grades 4-7. While were don’t correlate directly anymore due to the changes, we still provide essential foundational skills for testing. However, we correlate particularly well in sixth grade math.
  • 6th Grade: Expressions and Equations 9: “Use variables to represent two quantities in a real-world problem that change in relationship to one another; write an equation to express one quantity, thought of as the dependent variable, in terms of the other quantity, thought of as the independent variable. Analyze the relationship between the dependent and independent variables using graphs and tables, and relate these to the equation. For example, in a problem involving motion at constant speed, list and graph ordered pairs of distances and times, and write the equation d = 65t to represent the relationship between distance and time. “Number Sense 6.2, 6.3, and 6.5: “Fluently divide multi-digit numbers using the standard algorithm”; “Fluently add, subtract, multiply, and divide multi-digit decimals using the standard algorithm for each operation” ; understand that positive and negative numbers are used together to describe quantities having opposite directions or values (e.g., temperature above/below zero, elevation above/below sea level, credits/debits, positive/negative electric charge); use positive and negative numbers to represent quantities in real-world contexts, explaining the meaning of 0 in each situation.Easily meets the standards of practice.
  • In this routine, Costello successfully proves to Abbott that 13x7=28 through a series of interconnected misunderstandings. It is because he delivers his part of the gag so sincerely and that the mistakes he makes “make sense” that really gives the joke’s punchline such oomph. Having students present reports or conduct demonstrations to their peers is one way assessing how much they’ve learned. Having them help another understand why certain things are is another. The latter makes the concept of solving real world problems much more relatable.
  • Q&A.
  • SMG Investing for the Core

    2. 2. WHAT’S THIS?
    3. 3. WHAT’S THIS?
    4. 4. WHICH DO YOU LIKE MORE? Symbol: HSY Symbol: TR
    5. 5. Which Do You Which Would You Current Stock Like Best? Invest In? Price (1/24/13) Tootsie Rolls 27.17 (TR) Kisses 78.09 (HSY) Total X % XTransform your students, help them become data andinformation creators, instead of just consumers.
    6. 6. THE STOCK MARKET GAME™The Stock Market Game teaches investing fundamentals whileproviding opportunities for real world math and ELA skills.
    7. 7. Virtual $100,000 Teams of 3 to 5 + Stocks, Bonds, & Mutual Funds Do You Play?A Virtual Experience with Positive Real World Results
    8. 8. THE STOCK MARKET GAME IS• Project Based • 21st Century Literacy Learning and Skills• College and Career • Teacher Professional Readiness Development• Common Core opportunities Standards correlated • Interdisciplinary
    9. 9. One introductory lesson and 12 core lessons, organizedinto four units, address essential investment concepts.
    10. 10. ELA STANDARDS“Standards specify the literacy skills and understandingsrequired for college and career readiness in multiple disciplines.Literacy standards for grade 6 and above are predicated onteachers of ELA, history/social studies, science, and technicalsubjects using their content area expertise to help studentsmeet the particular challenges of reading, writing, speaking,listening, and language in their respective fields.”Source:
    11. 11. Click the asterisk above the Standard name to access its description.Click thelesson’s nameto access itsdescription. Teacher Support Center Standards section, Grade 6, ELA
    12. 12. The newsletter is unique because it is a creative narrativeapproach to informational text.
    13. 13. CCSS ELA CORRELATIONS • CCSS.ELA-Literacy.RH.6-8.7 Integrate visual information (e.g., in charts, graphs, photographs, videos, or maps) with other information in print and digital texts. (Grade 6-8 ELA History Social Studies) • CCSS.ELA-Literacy.RI.6.7 Integrate information presented in different media or formats (e.g., visually, quantitatively) as well as in words to develop a coherent understanding of a topic or issue. (Grade 6 Reading Informational Texts, Grades 5,7,8 have similarly worded standard) • CCSS.ELA-Literacy.RI.6.4 Determine the meaning of words and phrases as they are used in a text, including figurative, connotative, and technical meanings. (Grade 6 Reading Informational Texts, Grades 5,7,8 have similarly worded standard)
    14. 14. “I have always had such positive experiences withInvestWrite and all that it teaches our students. Withthe push for The Common Core Standards it fitsperfectly and shows exactly what the student knowsand what they can do. I believe, 100%, thatInvestWrite is the perfect activity to incorporate intothe teaching of economics and The Stock MarketGame™ as it truly shows how much students havelearned and are able to articulate through writing.” Kerry DiFusco, Gifted Resource Teacher White Eagle and Builta Elementary Schools Illinois
    15. 15. Register Today at
    16. 16. CCR READING ANCHORS • Key Ideas and Details • Integration of Knowledge and Ideas 1. Read closely to determine what the text says 7. Integrate and evaluate content presented in explicitly and to make logical inferences from diverse media and formats, including visually it; cite specific textual evidence when writing and quantitatively, as well as in words.1 or speaking to support conclusions drawn 8. Delineate and evaluate the argument and from the text. specific claims in a text, including the validity 2. Determine central ideas or themes of a text of the reasoning as well as the relevance and and analyze their development; summarize sufficiency of the evidence. the key supporting details and ideas. 9. Analyze how two or more texts address 3. Analyze how and why individuals, events, and similar themes or topics in order to build ideas develop and interact over the course of knowledge or to compare the approaches the a text. authors take. • Craft and Structure • Range of Reading and Level of Text 4. Interpret words and phrases as they are used Complexity in a text, including determining technical, 10. Read and comprehend complex literary and connotative, and figurative meanings, and informational texts independently and analyze how specific word choices shape proficiently. meaning or tone. 5. Analyze the structure of texts, including how specific sentences, paragraphs, and largerSMG is most effective meeting anchors 1, 2, 4, 6, 7, 8, 9, portions of the text (e.g., a section, chapter, scene, or stanza) relate to each other and the whole.and 10. 6. Assess how point of view or purpose shapes the content and style of a text.
    17. 17. CCR WRITING ANCHORS • Text Types and Purposes • Research to Build and Present Knowledge 1. Write arguments to support claims in an analysis 7. Conduct short as well as more sustained research of substantive topics or texts, using valid projects based on focused questions, reasoning and relevant and sufficient evidence. demonstrating understanding of the subject 2. Write informative/explanatory texts to examine under investigation. and convey complex ideas and information 8. Gather relevant information from multiple print clearly and accurately through the effective and digital sources, assess the credibility and selection, organization, and analysis of content. accuracy of each source, and integrate the 3. Write narratives to develop real or imagined information while avoiding plagiarism. experiences or events using effective technique, 9. Draw evidence from literary or informational well-chosen details, and well-structured event texts to support analysis, reflection, and research. sequences. • Range of Writing • Production and Distribution of Writing 10. Write routinely over extended time frames (time 4. Produce clear and coherent writing in which the for research, reflection, and revision) and shorter development, organization, and style are time frames (a single sitting or a day or two) for a appropriate to task, purpose, and audience. range of tasks, purposes, and audiences. 5. Develop and strengthen writing as needed by 11. Note on range and content in student writing planning, revising, editing, rewriting, or trying aSMG is most effective meeting anchors 1, 2, 6, 7, 8, 9, new approach. 6. Use technology, including the Internet, toand 10. produce and publish writing and to interact and collaborate with others.
    18. 18. CCR SPEAKING & LISTENING ANCHORS • Comprehension and Collaboration • Presentation of Knowledge and Ideas 1. Prepare for and participate effectively in a 4. Present information, findings, and range of conversations and collaborations supporting evidence such that listeners with diverse partners, building on others’ can follow the line of reasoning and the ideas and expressing their own clearly and organization, development, and style are persuasively. appropriate to task, purpose, and 2. Integrate and evaluate information audience. presented in diverse media and formats, 5. Make strategic use of digital media and including visually, quantitatively, and visual displays of data to express orally. information and enhance understanding 3. Evaluate a speaker’s point of view, of presentations. reasoning, and use of evidence and 6. Adapt speech to a variety of contexts and rhetoric. communicative tasks, demonstrating command of formal English when indicated or appropriate.SMG is most effective meeting anchors 1, 2, 3, 4, 5, and6.
    19. 19. MATH STANDARDS“One hallmark of mathematical understanding is the ability tojustify, in a way appropriate to the student’s mathematicalmaturity, why a particular mathematical statement is true orwhere a mathematical rule comes from. There is a world ofdifference between a student who can summon a mnemonicdevice to expand a product such as (a + b)(x + y) and a studentwho can explain where the mnemonic comes from. Thestudent who can explain the rule understands the mathematics,and may have a better chance to succeed at a less familiar tasksuch as expanding (a + b + c)(x + y).”Source:
    20. 20. STANDARDS OF PRACTICE • Make sense of problems and • Use appropriate tools persevere in solving them strategically • Reason abstractly and • Attend to precision quantitatively • Look for and make use of • Construct viable arguments structure and critique the reasoning of • Look for and express others regularity in repeated • Model with Math reasoningStudents engage the Standards of Practice every timethey meet to discuss strategies and make trades.
    21. 21. Click the asterisk above the Standard name to access its description.Click thelesson’s nameto access itsdescription. Teacher Support Center Standards section
    22. 22. A stock’s beta number is one of many measures of how volatile its price is compared to themarket. Market analysts use sophisticated statistical tools to calculate the beta numbers foreach stock, but you can get an idea of what Beta measures by comparing the change in themarket to the change in price of a stock. To better understand beta numbers, calculate themonthly percentage change in each stock and in the S&P 500 in each table, using the followingformula: Percentage change from month ( price _ in _ month _ b) ( price _ in _ month _ a) a to month b 100 % = price _ in _ month _ a Expedia, Inc. (EXPE) S & P 500 price % change Value % change November 2006 $18.16 $1,400.63 15.53% December 2006 $20.98 $1,418.30 February 2007 $21.26 $1,406.82 March 2007 $23.18 $1,420.86 International (EIX) S & P 500 price % change Value % change November 2006 $45.98 $1,400.63 December 2006 $45.48 $1,418.30 January 2007 $44.98 $1,438.24 February 2007 $47.00 $1,406.82Which of the stocks above had percentage changes that were very different from the market? What do you think thismeans about its Beta number?Source: Math Behind the Market Intermediate edition, What is Risk?, “Thinking Algebraically”
    23. 23. MATH BEHIND THE MARKET Available digitally to registered SMG teachers in theTeacher Support Center. For a printed copy, contact your local SMG Coordinator .
    24. 24. 13 X 7 = 28How would you help Costello understand 13x7 does notequal 28? Source:
    25. 25. DISCUSSIONVincent Young, Director of Curriculum ph: 212-313-1296Karla Helgans, Assistant Director National SMG ph:212-313-1312