Stock Trading Game

Stock Trading Game

Vendor
Yale School of Management
Regular price
$100.00
Sale price
$100.00
Quantity must be 1 or more

Each purchase includes:

  • Up to two (2) practice games (5 mins each)
  • Up to four (4) full games (25 mins)
  • 20 player seats (Need more? Purchase additional seats.)
  • Complete support documentation
  • A suite of final game reports, including player rankings

Pricing

Affiliation Setup (includes first 20 players) Cost Per-Player (after first 20)
Academic $100 $4/player
Corporate/Other $200 $10/player


About the Stock Trading Game

The Yale School of Management Stock Trading Game is an online educational tool intended to provide a fun, quick, and effective introduction to the concepts and mechanics of capital markets and stock trades. Designed by Roger Ibbotson, Emeritus Professor of the Practice of Finance at Yale School of Management, the game has become a beloved tradition among 1st-year EMBA students.

The Stock Trading Game is intended for use in a classroom or corporate setting with individuals of all levels of experience. It's simple and fun, making it an ideal activity for orientation programs, undergraduate and graduate courses, student club events, corporate retreats, and analyst trainings. 

In the Stock Trading Game, each player is a portfolio manager tasked with optimizing their portfolio through the use of public information, private information, and stock trades. The objective of the game is to beat the market by maximizing portfolio wealth. Trading takes place only with other players in the game through market orders, limit orders, bids, and asks. Players can hold both positive and negative positions (short selling) and can choose to purchase additional information, called “peeks,” to improve their understanding of the value of a security. The game ends after 25 minutes, at which point the system computes the player’s portfolio value and compares it with the market portfolio, as well as the performance of every other player in the game.  The true value of stock prices are revealed for the four stocks available for trading. 

Teaching Objectives

The Stock Trading Game differs from other simulations in that it leverages strategic interactions among students, rather than computer simulations or real markets, to introduce the concepts of investing, trading, and market theory. After several games, instructors are encouraged to debrief with students about how information affects stock prices, whether the game was efficient or inefficient and why, and how different groups of students fared overall. 

Concepts

  • Zero-Sum Games

  • Efficient Capital Markets & Tests of Efficiency

  • Imperfect Information and Security Pricing

Mechanics

  • Trading Basics: Market Orders, Limit Orders, Bids, and Asks

  • Short Selling (Holding Long or Short Positions)

  • Computing Portfolio Returns, including Annualized/Geometric Returns

  • Buying on Margin (e.g., Negative Cash, Loans)

Game Rules

Individual Play

  • Each player starts with the same portfolio and must trade at least once
  • Players may share information with other players

Buy and Sell Transactions

  • Players may place limit or market orders
  • Players may hold positive or negative (short) positions

Credit Constraints

  • Players can short up to 5 (negative) shares of each company
  • Players can borrow up to $200 @ 10% (negative cash)
  • Players may sell shares (or spend cash) that they don’t own

Game Ends

  • Liquidation values of all 4 stocks are revealed (the sum of each stock’s 10 cards)
  • Market (Buy + Hold) value + return is computed
  • Player portfolio value + return + rank is computed
  • Game Leaderboard is presented

Game Sequence

  1. Log into the Stock Market Game using your instructor-provided URL
  2. Click “Join Game”
  3. Starting Position:
    • Each player portfolio includes 5 shares each of Green, Orange, Yellow, and Red stock + $200
    • First Security Analyst Reports are visible for each company
  4. Game Play
    • Trade, purchase private information, manage portfolio
    • Earnings (EPS) reports released at regular intervals
    • Second SAR reports released for each stock
  5. Game End
    • Liquidation values are computed for each stock
    • Market (Buy + Hold) value + return is computed
    • Player portfolio values + returns + ranks are computed
    • Game Leader Board is presented (Summary Reports are emailed to instructors)

Frequently Asked Questions:

  1. Is this a 1-player game? No. This game leverages strategic interactions; we recommend class sizes of at least 20 students and each purchase includes the first 20 players. Keep in mind that adding players will create a more liquid and dynamic market and additional seats are available for purchase.
  2. Is there a discount for academic clients? Yes, we offer discounted pricing for educators. Choose the "Academic" option above. Note that we will verify your instructor status upon purchase. You must be an instructor at an educational institution to qualify; if you are not, and you have purchased at the academic rates, we will not be able to refund your purchase.
  3. How long is the game? Each purchase includes up to two (2) 5-minute practice games and up to four (4) 25-minute games. These can be scheduled across two (2) hour-long class sessions comprised of a practice game and two full games each (more below). Though this is the configuration Professor Ibbotson uses, once our administrators have scheduled your games, you are free to re-schedule as you see fit.
  4. How will I distribute access? We'll share with you a link to your game that you may distribute to players/students. Players will be prompted to register an account before proceeding (Name and Email Address). 
  5. Does it matter when the games take place? The games can occur at any time. To get you started, we will need the date(s) and time(s) you'd like to play along with your time zone, but you will be able to reschedule any game as you see fit.

    Typically, instructors reserve a 1-hour period for game play, and follow up with a discussion of the results during a subsequent class (though this is optional). A typical class schedule looks like this:

    • 1:00-1:05 Practice Game (5 min)
    • 1:05-1:07 Break (2 min)
    • 1:07-1:32 Game 1 (25 min)
    • 1:32-1:35 Break (3 min)
    • 1:35-2:00 Game 2 (25 min)

  6. Will I have to do anything to start my games? No, once scheduled, they start automatically.

    Additional Information

    Visit the Stock Trading Game website for additional details, including a comprehensive description of game play and technical tips and requirements.