Hands-on investing simulation boosts financial literacy

Campbell Business partnered with How the Market Works - the No. 1 free virtual stock market game and stock market contest platform - to bring the excitement of real-time financial markets into the classroom. The platform offers customizable game settings, strong data privacy, built-in research tools, tutorials and real-time trading.

Each student received a virtual $100,000 account to build a diversified portfolio of U.S. and Canadian stocks, bonds, IPOs, ETFs and mutual funds traded on the NYSE, NASDAQ, and Canadian exchanges.

Students in two Fall semester courses - ECON 202: Principles of Macroeconomics and ECON 420: Money & Banking - competed over a 13-week period under the direction of Dr. Shahriar Mostashari, associate dean for external relations and professor of business.

Throughout the competition, students were required to trade during each of the four bi-weekly reporting periods. They used class lectures, textbook materials, and a range of online and print resources-including the Education Center on the How the Market Works website-to prepare portfolio reports detailing holdings, transaction history, and strategic decisions.

Top Performers

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First Place: Giordan Anthony Bonanno

A senior accounting major from Albany, New York (now of Holly Springs, N.C.), Bonanno earned an impressive nearly 30% return. His winning strategy included shorting Ethereum early and reallocating proceeds into several high-performing "Magnificent Seven" stocks, as well as selling Hershey just before Halloween.

"The stock market game is a great tool to learn the ups and downs of the markets and how to strategize before using real money," Bonanno said.

Second Place: Max Leviton

A sophomore finance major and accounting minor from Colleyville, Texas, Leviton achieved a 19% return. He gained over $7,000 investing in MP Materials, though losses in NuScale (SMR) Power Corporation set him back more than $5,000.

Third Place: C.J. McQuitty

A senior majoring in Finance and minoring in Economics from Rising Sun, Maryland, McQuitty earned nearly 13%. His gains came primarily from long positions in gold-particularly Gold Fields Ltd. (GFI), which delivered a 33% total return-and mid-cap mining firms with significant gold reserves.

"The SMG was fun and a good exercise in understanding how markets move in response to the macroeconomic forces we studied in Money and Banking," McQuitty noted.

Fourth Place: William Mell

A finance major from Bedminster, New Jersey, Mell posted a 12% return. He modeled his portfolio after a former manager of the $20 billion Pennant Capital hedge fund. His biggest win came from EchoStar Co., which rose 40% and accounted for 85% of his total profits.

"The stock market game is a great way for students to learn about trading and how much research needs to be done to be consistently profitable," Mell said.

Financial Literacy Growth

In addition to the simulation, both classes completed a seven-question Financial Literacy Quiz from the FINRA Investor Education Foundation.

"The comparison of these class averages with the national and North Carolina averages showed that both pre- and post-test scores in ECON 202 and ECON 420 were above the national (3.0 points) and state (2.9 points) averages," said Dr. Mostashari.

Building Lifelong Financial Confidence

According to School of Business Dean Kevin O'Mara, financial literacy is essential for personal and professional success.

"People often shy away from getting involved with finances due to a lack of confidence or knowledge. Simulations like the one used in Dr. Mostashari's course provide low-risk, hands-on experience that improves financial knowledge, decision-making skills, and confidence in investing."

The Lundy-Fetterman School of Business offers numerous experiential learning opportunities to help students strengthen their financial skills. In addition to Dr. Mostashari's simulation, the school operates two student-run investment funds (SIFs) where students invest real money:

• The Burt Family SIF, designed for an upper-division finance course
• The Schaffernoth SIF, part of the Finance Club and open to all students, including first-year and non-business majors

O'Mara added, "Our business school has a significant footprint within the financial services industry. Along with these SIFs, we have the Center for Financial Literacy, the Risk Management Institute, and majors in Finance, Accounting, and Trust & Wealth Management. In fact, we offer the nation's only Trust & Wealth Management major at both the undergraduate and graduate levels."