Student Stock Trading Game: Initial Purchases

We started the Student Stock Trader Game in class on Monday, January 27, 2014.  I used some credits I had in the Edmodo App Store to purchase a license of the game to use with my senior Econ/POD classes.  Without much research I made a couple initial purchases, more to test out the system than to make serious investments.  My results are varied, showing how a lack of research can be harmful.

My initial purchases were PGH, Pengrowth Energy Corporation, (USA), you can find more information on the stock by clicking here.  I own shares of this company in the real world, so I grabbed some shares in the class game.  DOM, Dominion Resources Black Warrior Trust, which was on the highest change board that day.  You can find information on the company by clicking here.  PNRA, Panera Bread was the third stock that was purchased, I also own shares of this stock in the real world.  You can find information on this stock by clicking here.  The last stock I purchased was WWE, World Wrestling Entertainment.  I do not watch the product on television anymore, but they recently launched their own Internet-based network where you can purchase access to all past events and any upcoming ones for $9.99 a month.  At least in the short run, this move should bump up their stock prices considerably.  You can check out more on WWE stock by clicking here.

Our game only runs for 56 days, so I am investing from a different mindset than I would if I was thinking long term.  The fact that it is not my real money also allows me the freedom to invest in riskier stocks than usual, however my pride and not wanting to come in last is prohibiting me from going “all in” with a full risk portfolio.


Positive and Negative Externalities

What is an externality? An externality is a benefit given to the people with or without a cost. Why does the goverment regulate certain externalities? The government does this to help prevent health issues, global issues, and decrease the chance of spending money to fix these issues. An example of how this holds true with positive externalities is the example of the flu shot. The flu shot is usually covered by all insurances and is usually free to the patient but if people ignore this benefit they are more likely to get and spread the flu causing health probllems throughout the area. An example of why the government regulates negative externalities is because if a negative externality suffers damage its more costly to the government. An example is the nuclear power plant in Shippingport, PA. If something were to ever happen to the power plant it would cause the government massive ammounts of money on controlling the radiation, curing the people exposed, fixing the plant and its sources, and lastly sorting out the person(s) responsible. So for these reasons the government regulates certain externalities to prevent health issues, global issues, and decrease the chance of spending money to fix these issues.