Players use actual historical financial data (2006, 2009 and 2011 data is accessible on our site, other years can be found on various financial sites) to make stock purchase decisions. Purchase prices are taken from a ‘Buy Year’ in the past; investment gains and losses are immediately recorded based on current price quotes from the internet.
Players spin to draw stock cards, earn bonus money be defining investment vocabulary, land on various events such as tax payments and earned dividends, and answer bonus questions for big money payoffs. The player with the most wealth at the end wins!
The investing concepts covered include terms such as Earnings Per Share, Debt/Equity Ratio, Price/Earnings, Equity, Growth Company, Index Fund, Dividend, SEC.
The Rule Book contains a Glossary of 46 terms as well as Twenty Best Investment Practices from our founder.
More Info – Description of a Hypothetical Spin:
Henry spins and draws the CPB (Campbell Soup) stock card. Grandpa, the game’s Leader, goes to the website to get historical financial data. Meanwhile, Henry defines the term ETF from the Red Ring and earns a $1,000 bonus. The Green Ring however, calls for a tax of $2,000. Henry’s bonus is wiped out.
Grandpa pulls up CPB data and tells Henry that CPB’s price in December 2009 (the Buy Year) is $33.80. The timer begins and Henry uses prompts in the Blue Ring to ask Grandpa for historical financial data.
Henry learns that CPB’s 2009 Debt/Equity ratio is 3.6. Grandpa adds a little background information, stating that the US economy was recovering from a recession in 2009 and therefore, borrowing wouldn’t have been unusual to finance inventory. The ratio still seems high to Henry. CPB may fail to keep up with debt which is 3x more that what shareholders have invested.
Henry asks about the Interest Coverage ratio and learns that it is 10.8. Grandpa explains that means CPB has more than 10x what they need to keep up interest payments!
Henry decides to buy 2,000 shares. Grandpa looks up CPB’s current price on his favorite financial site. He reveals to everyone that CPB is currently trading at $33.22. That’s a 4% increase! Henry just increased his portfolio value by $2,840!