THE VINCNET MASSEY STOCK EXCHANGE GAME

(THE GSE)

WORKSHOP 2

THE SECTORSENERGY

PRODUCTION

RECREATION

RESOURCES

TRANSPORTATION/

COMMUNICATION

IMPORTANT TIP OF THE DAY…know your stocks!

Eg. AG

What company?

(Alberta Gas)

What sector?

(Energy)

What’s it do?

(Exploration, sales)

PRINCIPLES OF INVESTING IN THE STOCK MARKET

Buy low, sell high Diversification Risk tolerance Patience

CONDITIONS FOR BUYING STOCKS!!!

Price of stock is cheap

Commodity prices rising

Economy is strengthening

Company is expanding & growing

Good news announced!!

CONDITIONS FOR SELLING STOCKS

Price of stock is high Commodity prices

falling Economy slowing Company unable to

sustain growth Bad news

announced!!0102030405060708090

1stQtr

2ndQtr

3rdQtr

4thQtr

EastWestNorth

HEADLINES WHICH AFFECT STOCK PRICES

…why do headlines affect stock prices ?

….because they can incite people into selling or buying a stock!!

…Extra extra

RUSSIAN WHEAT CROPS FAIL IN 2002…….

Manitoba Wheat Corp. stock goes up (worldwide shortage means more $$)

CN Rail stock goes up (transport of Manitoba/Sask grain across Canada)

Stalingrad Shipping Lines stock down (Russian shipper loses business)

Major strike “rocks” mining industry last night...

Sudbury Sludge Corp. stock tumbles (no one working, no production)

Rockman Intl stock nosedives (no production)

Caterpillar Heavy Machinery down (no one working, no one buying machinery)

Enviro-Happy Limited (stock climbs as they’re hired to clean up mines)

France and British Columbia sign new pulp, paper contract

BC Paper LLP stock climbs (more production)

Nova Transport stock up (transport raw material)

Fred’s Helicopter stock up(removal of trees from isolated areas)

Enviro-Happy stock plummets (less work, less forest)

Aboriginal Forest Products stock dives (less trees to make crafts from)

Graphing

Your brokerage team is responsible for maintaining graphs representing each round of trading

Your handbook contains examples of “Cash Flow”, “Graphing 5 Stocks”, “Sector Analysis”, “Bar Graph of Averages”, “Prices, Statistics Page”, and a “Trading Journal”.

You will receive new copies on Game Day.

HAPPY TRADING!!!!

BONNE CHANCE!!!!