Advisor Guide. Spring Thanks to the generous support of:

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1 Advisor Guide Spring 2018 Thanks to the generous support of: Department of Commerce & Consumer Affairs Office of the Securities Commissioner

2 Welcome to the Hawaii Stock Market Simulation Aloha Teachers, Welcome to the Hawaii Stock Market Simulation. We are delighted that you are including this useful interactive tool in your curriculum. We believe that responsible money management and investing are important life skills and this simulation is an engaging and effective way for students to learn those skills. We are proud to sponsor the simulation and hope that you and your students consider it as fun and valuable as we do. Mahalo for your commitment to investor education and your dedication to the students who benefit from your efforts. Sincerely, Denise Esposito Executive Director Hawaii Council on Economic Education Table of Contents About the SMS... 2 Contacts for the Hawaii SMS... 2 Registration for the SMS... 2 Getting Started - Ideas... 2 Customer Support... 2 Investing in Securities... 3 Stock Transactions with SMS... 3 Mutual Fund Transactions with SMS... 3 Bonds Transactions with SMS... 4 Market Holidays... 4 Investing Restrictions... 4 Stock Market Basics... 4 Researching a Company or Market... 5 Major Market Indices... 5 Fax Form... 6 Fax Investing Procedures... 6 Hawaii SMS Investing Rules... 7 Teacher s Internet Guide Suggested Curriculum Frequently Asked Questions... 18

3 About the SMS The SMS is the fastest growing 3-12 grade stock market simulation in the country. Last year over 200,000 students participated in the SMS. The SMS is sponsored and administered by Stock-Trak, Inc. of Quebec, Canada. The program is aimed at improving financial literacy among elementary, middle, and high school students. The SMS offers teachers in economics, social studies, technology, math, and other related fields an opportunity to bring "real world" applications into their class. The Hawai`i Council on Economic Education provides this simulation at no cost for teachers and students thanks to their partner, the Department of Commerce & Consumer Affairs, Office of the Securities Commissioner. Each team is given $100,000 to invest in stocks and bonds over a ten-week period. From students may invest and check their account status at anytime. Should the internet be unavailable for any reason, investments may be faxed to SMS toll free at via the Fax Form provided on and later in this guide. Contacts for the Hawaii SMS Hawai`i Council on Economic Education Stock-Trak 126 Queen Street # Rue Ashby Honolulu, HI Montreal Quebec H4R2K3, Canada Phone: Phone: Toll Free: (9-6 ET) hceedenise@gmail.com Fax: support@stocktrak.com Registration for the SMS The easiest and most convenient way for teachers to register for the simulation is by visiting Registration is FREE. For further questions about the registration process please contact the Hawai`i Council on Economic Education at hceedenise@gmail.com or (808) Upon registration, please print the confirmation page with the student team numbers and passwords listed. Teachers will also receive a demo account and password for use prior to the start of the simulation. This account will be zeroed out on the first day of the simulation so that teachers can participate along with their students. Getting Started Once you have registered, keep student team numbers and passwords in a safe place. This information will be needed to log into your account or make a transaction. Teams: Each team must have between 2 and 4 students. On the Rules for the simulation are available on the button marked Rules on the left margin of the page. We encourage you to become familiar with them and to distribute copies to each student. The Rules are updated at the start of each semester with suggestions and improvements from previous semesters. Ideas for student teams: 1. Each student on a team could be assigned a field of expertise such as treasurer, record-keeper, etc. The $100,000 can be invested on a group decision basis or by assigning a pro rata share of the funds to each student to invest at their discretion. One team member could be an accountant who writes down the investments and verifies the team s manual calculations with the account summary listed on the web site. This becomes an excellent math assignment! 2. Teachers may also consider naming a team captain, lead researcher, treasurer, record-keeper, and transaction verifier. The captain can ensure each member does his/her job and does the final check before entering investments. The researcher reports on news affecting the general economy and the team s stocks as well as taking reports from the experts. The treasurer acts as an accountant, filling out worksheets and keeping records. The record-keeper manually tracks daily gains and losses in the team s stocks. The transaction verifier double-checks current market values, ticker symbols, and prices before turning in investments to the captain. Teachers may want to rotate students to broaden their learning experiences. Customer Support Hawaii SMS has a toll free customer service line (1-866-SMS-DESK) for teachers to call when they need help with their account or just have general questions. Participants can help-desk@stocktrak.com or fill out the Online Error Form. Replies will be sent within 48 hours. Many questions can be answered by reading the SMS Basics, SMS FAQ s, and the Rules. Page 2

4 Investing in Securities There are several different types of securities in which teams can invest with the SMS. Stocks, preferred stocks, mutual funds, bond and bond funds are available for participants to invest with the SMS. Hawaii SMS allows investing of all of these securities. All stocks and preferred stocks will be invested on delayed prices. Mutual funds and bonds are all invested on end of day prices. Stocks The SMS invests all stocks listed on the NYSE, AMEX, and NASDAQ Exchanges that are priced above $5.00 and have a volume of more than 100. All stocks are invested at minute delayed pricing if placed while the market is open (9:30am 4:00pm ET). Mutual Funds The SMS allows investing of any mutual fund that is listed on the NYSE, AMEX, and NASDAQ regardless of the price or volume. All mutual funds are invested at close of day prices. Bonds A list of all bonds available to be invested with the SMS is on the Bond Order Screen. If there is a bond not on the list that your students would like to invest, please contact SMS Help Desk and they will add it to the page. All bonds and bond funds are invested at close of day prices. Stock Transactions with SMS In order to make a transaction, click on the Buy/Sell tab at the top of the site, then make sure you are on the Stocks tab. Next, enter your transaction information transaction type, number of shares, and the ticker symbol. Once all of this information is entered, click on the Preview button to double check the transaction. DON T STOP HERE! The transaction has not been placed quite yet. After clicking the Preview button, a Preview Order Page will list the number of bonds and the price, ticker symbol, transaction type, and the estimated amount that this order will cost. If you choose not to place the transaction, click on the Cancel Order button at the bottom of the page and the transaction will be cancelled. If everything on the preview page appears correct, click the Submit button on the bottom of the page and the transaction will be submitted. A Stock Order Confirmation will then automatically open and display the transaction and a corresponding confirmation number. Please print or keep a copy of all the confirmation numbers. Rules for placing transactions: 1. Transactions for stocks can only be done in shares, not dollars or units. The minimum number of shares is 25 shares. All stocks must be worth more than $5.00. If the price of a stock you already own goes below $5.00, you don t have to sell the stock. You may still hold your position but you cannot purchase any more of that stock. 2. The stock must also have a volume of at least 100 shares or it cannot be ordered. The amount of shares you can buy is limited to the actual volume for the day. 3. All teams are limited to making 100 transactions throughout the 10-week simulation. If you use all of your orders, then you cannot make any more transactions for the remainder of the simulation. Additional transactions cannot be purchased. 4. Each buy and sell counts as one transaction. If you buy 100 shares of a stock and then sell 25 shares of a different stock, that counts as two transactions. 5. Teams are also limited by their position limit, which is explained later in this guide. The Hawaii SMS has a position limit of $50,000. Teams are only able to order stocks listed on the AMEX, NASDAQ, or NYSE. Teams may not invest in INDEX stocks. Investing in preferred stocks is allowed. Mutual Fund Transactions with SMS In order to make a transaction, click on the Buy/Sell tab at the top of the site, then make sure you are on the Mutual Funds tab. Next, enter the transaction information transaction type, amount of the transaction (a dollar amount in multiples of $500), and the ticker symbol (the ticker symbol for mutual funds will be 5 letters long ending in the letter X). Once all of this information is entered, click on the Preview button to double check the transaction. DON T STOP HERE! The transaction has not been placed quite yet. After clicking the Preview button, a Mutual Fund Order Preview Page will list the number of shares, price, ticker symbol, transaction type, and the estimated amount that this order will cost. If you choose not to place the transaction, click on the Cancel Order button at the bottom of the page and the transaction will be cancelled. If everything on the preview page appears correct, click the Submit button on the bottom of the page and the transaction will be submitted. A Mutual Fund Confirmation Page will then automatically open and display the transaction and a corresponding confirmation number. Please print or keep a copy of all the confirmation numbers. Mutual Fund Rules: 1. When making transactions with mutual funds, use the dollar amount and not the number of shares. For example, if 10 shares of the mutual fund cost $500, please enter $500 as the amount to sell when it is time go to sell the order. 2. To sell all the mutual fund shares at once, place in the amount field on the Mutual Fund Order Screen. Page 3

5 Bond Transactions with the SMS In order to make a transaction, click on the Buy/Sell tab at the top of the site, then make sure you are on the Bonds tab. Next, enter your transaction information transaction type, number of bonds, and choose a bond from the list provided. Once all of this information is entered, click on the Preview button to double check the transaction. DON T STOP HERE! The transaction has not been placed quite yet. After clicking the Preview button, a Bond Order Preview Page will list the number of bonds, price, ticker symbol, transaction type, and the estimated amount that this order will cost. If you choose not to place the transaction, click on the Cancel Order button at the bottom of the page and the transaction will be cancelled. If everything on the preview page appears correct, click the Submit button on the bottom of the page and the transaction will be submitted. A Bond Order Confirmation will then automatically open and display the transaction and a corresponding confirmation number. Please print or keep a copy of all the confirmation numbers. Market Holidays The stock markets will be closed on the following days in When the stock markets are closed, teams may still order, however, their orders will not be posted to their accounts until the next business day New Year s Day January 21 Martin Luther King, Jr. Day January 15 Washington s Birthday February 19 Good Friday March 30 Memorial Day May 28 Independence Day July 4 Labor Day September 3 Thanksgiving Day November 22 Christmas December 25 **Note: The markets will be closed early at 1:00pm EST on the following days. Day Before Independence Day July 3 Day Following Thanksgiving November 23 Day Before Christmas December 24 Investing Restrictions There are restrictions with SMS to help encourage appropriate investing. Position Limits: Position limits are put in place to limit the amount each team can invest in one security. This restriction prevents participants from losing all their money in one security and it also encourages diversification. Throughout the simulation, teams may invest no more than $50,000 in any one stock. Transaction Limits: Hawaii SMS has a limit of 100 transactions. Transactions limits are put in place to prevent participants from focusing on short-term investments. Researching of securities before orders are placed and long-term investments are encouraged. $5.00 Minimum: The $5.00 minimum is put in place to prevent participants from purchasing penny stocks. Transaction Fill Price: Securities are invested at minute delayed pricing or end of day pricing depending on the securities in which you are investing. Stock Market Basics The stock markets are open Monday through Friday from 9:30 am to 4:00 pm EST. There will be a minute delay on pricing for all stocks and preferred stocks. All commodities will be invested at end of day prices. Transactions ordered after the market has closed will be placed the following business day (that markets are open) at the opening price. Transactions ordered before the market opens, will receive the opening price for that day. The SMS website includes a link to the Most Used Ticker Symbols which is located on the left margin of the web site. This selection lists the most frequently ordered stocks and their ticker symbols and is a good reference for teachers and students. The SMS page also has a ticker symbol lookup screen for those hard to find ticker symbols. It is important to be familiar with ticker symbols, which are different from the abbreviations that newspapers use. Page 4

6 Stock Market Basics continued There will be a $25.00 flat fee commission on all stock orders, regardless of the number of shares or the price ordered. Since this simulation involves online investing this fee approximates a real online transaction commission. To obtain daily, detailed information about any account, just login to the Hawaii SMS web page and click on Portfolio or Summary tab. Team activity and rankings are updated each business day. Click on the Ranking tab to compare your account against other teams in your division. A statewide top 50 ranking is also available to see how the top 50 teams in the state are performing. At the end of the simulation period, do not sell all of your stock holdings. Final team standings will be based on the last day s closing prices of equities in your portfolio. Researching a Company or Market The Hawaii SMS home page contains two excellent resources that provide information on a particular company or industry: the Quotes and Research pages. These tabs are located on the top part of the homepage next to the Ranking tab. The Quotes page is an excellent starting point for researching a company. Click on the symbol lookup icon located on the left margin of the page to research any stock s ticker symbol. Type in the company s name and click on the search button. A one to five character ticker symbol will be displayed. Record this symbol, as each team must input the ticker symbol to make a transaction. Then, click on the symbol and the stock information will be displayed. Additionally, important financial information such as the Earning per Share (EPS) and the Price to Earnings Ratio (P/E) will be listed. The most thorough resource on the SMS web page is the Research page. Clicking on the Research tab on the top navigation bar takes students to a listing of fifty top research and investment sites chosen by Stock-Trak s Investment Specialists. These sites are categorized into the following nine sections: Fundamental Research, Technical Research, Market Watch, Other Popular Investment Sites, Industry-Leading Stocks, Teacher Recommended Sites, Quote Tools, Finance 101, and Helpful Newsletters. The students should evaluate each stock considered for investment. The Research segment of the SMS web page is an excellent resource for investigation. Some companies annual reports are available to be mailed to you by selecting Free Annual Report from the Fundamental Research heading. Major Market Indices Professional money managers are evaluated on how their stock selections performed compared to certain stock market averages or indices. The three most popular benchmark indices are the Standard & Poors 500 Index (S&P 500), Dow Jones Industrial Average (DJIA), and the NASDAQ Composite Index. The S&P 500 is the standard for most account managers and contains 500 large cap stocks. The S&P 500 accounts for 80% of the value of the U.S. equity market. Professional money managers use this index when they refer to the stock market. The DJIA contains 30 large companies (large market capitalization or large cap ) stocks that represent about 30% of the value of the U.S. equity market. The oldest index, the DJIA, started in 1896 when twelve stocks were selected by Charles Dow to track the emerging industrial sector of the American economy. Today, the editor and owner of the Wall Street Journal determine the stocks in the DJIA. The NASDAQ Composite Index was created in It is a computerized network of stockbrokers attempting to buy or sell stocks. It is commonly referred to as the technology laden index because 70% of its market value is technology stocks versus 28% for the S&P 500 index. There are approximately 3,800 stocks in this index. Fax Procedures There is a fax order option for all participants. For example, if a participant doesn t have Internet access, he or she is still able to participate by faxing the order to the SMS Helpdesk. Orders will be processed at the end of day prices. This option is also available for when the Internet is not available so teams are still able to place orders. Only teachers may fax in orders 24 hours a day using the fax form provided on the website. The form may be found as a link on the left navigation bar. The fax form can be viewed and printed using Adobe Acrobat Reader. The following information must be filled in completely with dark ink for your order to be processed: each team number, password, the teacher s name, signature, and phone number, fax number and all information pertaining to your transactions. A copy of the fax form can be found on the following page. Page 5

7 Hawaii SMS Fax Form Fax form to (toll free). Please follow the instructions below: The team numbers and passwords must match or the order cannot be completed. Your signature indicates that you have verified the team number and password. The information must be printed clearly in dark ink. Do not use pencil! One of 2 transactions must be filled in. Buy or Sell. Both the company name and the ticker symbol must be filled in. Orders may not be executed without this information. Please enter only one team number per fax form. Teacher Information Date: Teacher Name: Time: Teacher Signature: Teacher Phone with area code: ( ) Teacher Fax Number with area code: ( ) Transaction Information Order Team Number Password Transaction Type Num. Of Shares Ticker Symbol Company Name Example HI Buy 100 KO The Coca Cola Co For questions: Teachers call toll free SMS.DESK between 9 and 6 ET or help-desk@stocktrak.com. Page 6

8 Hawaii SMS Investing Rules Spring 2018 version 1. Initial Cash Balance The Spring Hawaii Stock Market Simulation begins on February 12, 2018 and ends on April 20, Each team will begin with $100,000 in cash. 2. How To Invest Before placing any orders, you must have your team number, password, and the ticker symbols of the securities you wish to buy or sell. Investing in Stocks: There are four basic ways to invest in stocks: buy, sell, short sell, and short cover. When buying a stock, you are taking a "long position" with the hope that the price per share will increase. When you sell a stock, you close that long position. Selling short is selling a stock that you don't own (you actually borrow the stock from the broker) with the hope that you can later buy the stock back at a lower price. When you buy the stock to pay back what you borrowed, it is called "covering" your short position. To buy or short sell a stock, specify how many shares you want, rather than how much money you wish to spend. You may not be long and short in the same stock at the same time. Investing in Bonds: You may buy or sell bonds with the SMS. Bonds are notoriously difficult to research. A selection of Corporate Bonds, Treasury Bonds, Strips, and Bond Mutual Funds is listed on the bond transaction screen. All bonds have a par value of $1,000. When you buy a bond, you must pay the accrued interest on the bond. On your statement, the accrued interest and commission are added together. You cannot short a bond. Investing in Mutual Funds: You may buy or sell mutual funds with the SMS. Mutual funds are bought and sold in dollar amounts not by number of shares. Mutual funds must be bought or sold in lots of $500. To sell off all of your mutual fund shares enter in the box for dollar amounts. In order to invest in mutual funds you must have the ticker symbol. All mutual fund ticker symbols are five letters long ending in "X". A confirmation number will be provided on the confirmation page for every transaction. Please track your confirmation numbers. 3. There are two Versions of the Program The Internet Version: Hawaii SMS Home Page ( Visit our home page to place orders, review your team's activity, research stocks, obtain quotes, find ticker symbols, and review your team's ranking. This is the best way to invest because it is fast, accurate, and convenient. The Fax Version: (Fax Line Toll-Free: ) You may fax in your trades 24 hours a day. (This version is also used as a back up for the Internet version). You must send your trade request using the fax form provided on the website. The form may be found as a link on the left navigation bar. The fax form can be viewed and printed using Adobe Acrobat Reader. All information must be filled in completely with dark ink for your order to be processed. This includes your team number, password, your teacher s name, signature, and phone number, fax number and all information pertaining to your transactions. 4. Transaction Times and Prices Received Stocks: Orders placed via the web page will receive minute delayed prices if placed while the market is open (generally 9:30 am 4:00 pm ET). Orders placed after the market has closed will receive the next day s opening price. Orders placed via fax and received before market close will be executed at that day s closing price. Orders made after market close will receive the next day s closing price. Bonds: Orders placed via the web page will receive end of day prices. Orders placed via fax and received by market close will be executed at that day's closing price. Orders received after market close will receive the next day's closing price. Since bonds pay interest via coupons, when you buy bonds in between coupon dates, you must pay accrued interest. You will earn interest at the coupon rate while you continue to hold the bond. If you sell your bond during the simulation, you will receive all that accrued interest. Mutual Funds: Mutual Funds orders are always at the end of day price (NAV or net asset value). Orders received before market close will be placed at the closing price for that day. Orders made after market close will receive the next day s closing price. Page 7

9 Hawaii SMS Investing Rules continued Spring 2018 version 6. Securities that can be bought or sold Stocks: You may buy and sell on almost all NYSE and NASDAQ-AMEX stocks (common and preferred) that are trading at $5.00 or more. IPOs are usually available within 48 hours of the day the stock starts trading on the exchanges. Stock orders may be in any whole number of shares greater than 25 (i.e., 25 share minimum but you can buy or sell 26 shares or more). Bonds: The bond transaction page has a limited set of 103 bonds that participants can choose from. All bonds have a par value of $1,000. You cannot short a bond. Mutual Funds: All publicly traded mutual funds may be bought or sold, regardless of the price (No $5.00 minimum price as with stocks). 7. Volume and Purchase Restrictions Throughout the simulation, teams may invest no more than $50,000 in any one stock. For example if you buy $50,000 in any one stock and the price increases, you are not required to sell any portion of that stock to remain at $50,000. Teams may not buy stocks selling for under $5 per share (no penny stocks). The maximum number of shares in which a team may invest is limited to one-half of the actual volume for that day. All stocks have a 25 shares minimum but do not have to be in multiples of 25 shares per transaction. For example, you can buy 26 shares or 157 shares, but no 24 shares. Mutual funds must be bought or sold in lots of $ Ticker Symbols You need to know the ticker symbol for the security before you can buy or sell it. Please note that most local newspapers show only the abbreviation of the company name, not the ticker symbol. The Wall Street Journal and the SMS web page are two great Internet sources to help you find the ticker symbols you need. You can also find links on our research page that will help you find a certain ticker symbol. 9. Commission A broker's commission is applied to most transactions. The commission for stock and bond transactions is a flat fee of $25 on each transaction regardless of the number of shares. If you sell one stock or bond and buy another you will be charged two commission fees. Mutual funds are not charged a commission. 10. Margin Requirements The margin requirement for stocks in the simulation is 50%. Initially, this means since you are starting with $100,000 you may borrow another $100,000, making your total buying power $200,000, minus commissions. You may buy and short sell stocks and bonds on margin. 11. Interest Earned Interest will be earned on all available cash balances and credited at the close of each day. During the simulation, cash balances will earn 3% interest, compounded daily. 12. Interest Charged Interest will be charged on all loan balances and will be debited at the close of each day. During the simulation, loan balances will be charged at 8% interest, compounded daily. 13. Portfolio Statements Team activity or portfolio statements are available on the website at 24 hours a day. Students are encouraged to print these off periodically. It is important to keep copies of the statements received since they cannot be reprinted. Team activity and team rankings are updated every business day on the web page. 14. Number of Transactions Each team is limited to 100 transactions during the 10-week period. Each buy, sell, short sell or short cover counts as a transaction. For example, if you buy a stock and sell another stock you will be charged with 2 transactions. Page 8

10 Hawaii SMS Investing Rules continued Spring 2018 version 15. Incentive/Competition Eligibility Teams wishing to be eligible to become winners must follow this rule: Teams must have at least 5 investments in their portfolio by the end of the 3rd week of the simulation, and must continue to hold at least 5 for the remainder of the simulation. Teams must also not invest more than $50,000 in any one stock during the simulation. Income/Growth Division (Grades 9-12): portfolio must contain 50% stocks and/or stock funds and 50% bonds and/or bond funds Growth Division (Grades 9-12): portfolio must contain 65% stocks and/or stock funds and 35% bonds and/or bond funds Aggressive Growth Division (Grades 9-12): portfolio must contain 80% stocks and/or stock funds and 20% bonds and/or bond funds Elementary Division (Grades 3-8): portfolio must contain at least 50% stocks and/or bonds or bond funds To be eligible for prizes: 1. Each team must have between 2-4 students. 2. The following incentive rules must be met by the closing Bell on the New York Stock Exchange on the following days (EST is very important for this rule): March 2, 2018: Teams must have a minimum of five (5) equity positions (stocks, bonds, and mutual funds) March 16, 2018: Teams must meet their stock/bond allocation (see Maintaining Asset Allocation below) Income/Growth Division: 50% stocks and 50% bonds Growth Division: 65% stocks and 35% bonds Aggressive Division: 80% stocks and 20% bonds Elementary Division: 50% stocks and bonds To be eligible for prizes teams must make their initial investments and hold at least 5 equity positions on or prior to March 2, They also must meet their stock/bond allocation on or prior to March 16, Teams must continue to hold a minimum of 5 equity positions and meet the allocation requirements until the end of the simulation. Teams that invest in stocks only and purchase bonds in the last days or weeks of the session will not be eligible for prizes. The dates listed above are based on New York time, not Hawaii time. For example, if a team purchases all of their bonds on Friday afternoon, March 2, 2018, after the markets are closed, the transaction will actually be made on Monday, March 5, This team did not make the bonds allocation deadline. Please keep in mind the time difference when making transactions. The requirements above have been put into place to give the students a more realistic environment in which to invest. 3. Each team must outperform the benchmark in their division to be eligible for prizes. At the end of the investment session, the top team's portfolios will be compared to a relative benchmark of the proper asset allocation (same asset allocation based on division in which the team is participating) of the 10-yr Treasury Note and S&P500 stocks. If the team outperforms this benchmark and meets the stock/bond allocation criteria of their division, it will be eligible for incentives. A team that accumulates a total portfolio value well above the benchmark but does not have the proper allocation of stocks and bonds will not be eligible for prizes. The benchmark is listed on the ranking page in blue. Each team's ranking is listed in red on the ranking page. Page 9

11 Determining Proper Allocation Teams can determine the percentage of stocks and bonds in their portfolio by using the formulas below. Use the Portfolio and Summary pages to gather your data. % Stocks = Net Stocks Total Portfolio Value % Bonds = Net Bonds Total Portfolio Value Calculate the total portfolio value using this formula: Total Portfolio Value = Net Cash + Net Stocks + Net Bonds Calculate the net stocks and net bonds using these formulas: Net Stocks = MVLP (Stocks) + MVLP (Stock Mutual Funds) Net Bonds = MVLP (Bonds) + MVLP (Bond Mutual Funds) Calculate the net cash using this formula: Net Cash = Ending Cash Balance MVSP (Stocks) Loan Balance MVLP = Market Value of Long Position MVSP= Market Value of Short Position As the simulation progresses, teams may find it necessary to reallocate in order to maintain the proper balance of stocks and bonds. When the judges are reviewing final portfolio values for incentive eligibility, a range of 20 points will be allowed in each category, 10% percent on either side of the target. To be eligible for incentives a team's final portfolio must meet the following requirements on the last day of the simulation. Income/Growth Division: Growth Division: Aggressive Division: Elementary Division: 40-60% stocks and 40-60% bonds 55-75% stocks and 25-45% bonds 70-90% stocks and 10-30% bonds 50% stocks and bonds Page 10 Remember: Teams are still expected to meet the original target allocation of stocks and bonds by the March 17, 2017 deadline. 16. End of the Simulation Please do not convert all of your investments to cash on the last day of the simulation. Your portfolio will be valued at the closing prices for that day. The Hawai`i Council on Economic Education will announce the official winners of the simulation, usually within two weeks of the last day of simulation. 17. Disputes and Errors If you believe an error has been made in your portfolio, your teacher may call SMS-DESK, toll-free, to discuss the problem. Please review your statements and report any problems right away. The Hawai`i Council on Economic Education and STOCK-TRAK are not responsible for orders or quote prices that are incomplete, incorrect, or not received. The Hawai`i Council on Economic Education and STOCK-TRAK may use various methods (such as time and tape analysis) to resolve disputes. The decision made by the Council and/or STOCK-TRAK is final. The Hawai`i Council on Economic Education and/or STOCK-TRAK has the right to adjust or delete transactions that are believed to be incorrect, and the right to terminate any account that they believe may have attempted to exploit, manipulate, or sabotage any part of the

12 Suggested Curriculum Transactions Summary To trade stocks, you All will teams need in to your fill out division will be listed in the this ranking. trade order Your form. team will appear in red to make finding your team easier. Once logged into your account your summary page will appear listing all the Teams can view a list parameters of your Teams can of their make, pending and account. Rankings limit or stop previous are market updated orders. each transactions. business day by 7:30pm EST Trade: Funds A team s buying power Trade: is updated To login, Stocks you will here as trades Ranking need are to key in your made. team number and password here. Learning about the stock market can bring a lot of excitement to a classroom. That excitement can spill over into other areas and really enhance the learning environment. In some cases, it will provide a topic for dinnertime conversation with parents, in others, parents themselves may be encouraged to learn more about investing. Throughout the lessons, students will use real-world math skills and learn about current events. They ll be able to answer questions such as: Why did the news about an increase in the price of oil affect the price of my stock? or Why does the war in another country affects the price of my stock? Internet Guide Adventures in the Stock Market contains helpful hints for teachers whose students participate in the Stock Market Simulation. For example, through out the competition, student s desire to win often causes them to engage in the riskiest of strategies, resulting in a few big winners and lots of big losers. However, it is essential that students understand that investing is a lifetime undertaking and not a game. Real investing decisions need to be thoughtful informed choices. Lessons from Adventures in the Stock Market will help teachers teach the importance of saving and investing. In addition, students will learn about the role of business in the economy, as well as how the stock market helps business raise financial capital while letting small investors share in their success or failure. Fall 2009 You can register your teams for the SMS here. Various links containing helpful Thanks to the generous Limit/Stop support of: All account details To trade mutual information can be and market data will funds, you found will need along the left be listed on your to Help fill out the side mutual of each page. Once you complete summary. fund order form. the trade form, you can preview your For any questions, trade then submit or please submit this cancel the trade. A team Department of Commerce & Consumer Affairs All password limit/stop is only This feature shows required transactions for account form to the SMS. will be Office of the Securities Commissioner your gain/loss for the discrepancies and listed here. year to date. Also editing of account available is the day s information. gain/loss. Trade: Bonds Page 17 Learning Earning and Investing High School and Middle School Learning Earning and Investing introduces students to the world of investing, its benefits and risks and the critical role it plays in fostering capital formation and job creation in our free market system. Learning, Earning and Investing is a comprehensive investor education program focuses on the benefits of and strategies for investing for the long term. Lessons cover basics such as the language of financial markets, reading the financial pages and financial institutions in the U.S. economy. The 16 lessons in the middle school volume and the 23 lessons in the high school volume provide students with active-learning experiences. In addition, the companion Web site offers sample lessons, interactive simulations, downloadable Power Point visuals, a glossary and assessments. The Web site offers downloadable lessons that are not included in the print publications, for fourth - and fifth grade students. The Web site serves as a portal for a wide range of investor education Web sites and materials. You can reach the site at http: //lei.ncee.net Gain/Loss Page 15 Page

13 Frequently Asked Questions 1. When is my investing period? The Spring 2018 Hawaii SMS will begin on Monday, February 12 and ends on Friday, April 20, How do I register for the SMS? Visit and click on the teacher registration link. 3. What is my team number and password? Register for the SMS is at Team numbers and passwords will be listed on the confirmation page. If you do not receive or have misplaced your team numbers and passwords, contact the SMS Help desk at What do I do if I registered too many teams? If you requested too many teams while filling out the registration form, contact the Hawai`i Council on Economic Education immediately. Extra teams are not a problem and can be easily corrected, but communication between the teacher, Hawai`i Council on Economic Education, and Stock- Trak is imperative. 5. How do I find a specific ticker symbol? Ticker symbols can be found for a specific company by going to and clicking on Ticker Symbol Lookup. This will prompt you to enter the company name of the ticker symbol you need. If no ticker symbol is found for this company then you should determine if the company has a parent company. The Wall-Street Journal website is a good place to find ticker symbols. 6. Do I need to sell everything I own at the end of the simulation? No. Please DO NOT convert your entire portfolio to cash on the last day of the simulation. Your portfolio will be valued at the closing prices for that day. The Hawai`i Council on Economic Education will announce the official winners of the simulation within two weeks after the last day of session. 7. What do I do if my team numbers aren t working? Immediately contact the SMS Help Desk at or by at support@stocktrak.com. Page 12