Commerce students take first at stock market simulation competition
SACKVILLE, NB — A team of Commerce students from Mount Allison University won a stock market simulation competition held at Université de Moncton on February 11.
The competition, hosted by the Centre de Gestion Financière Banque Nationale, saw teams of business students from seven universities in the Maritimes and Quebec trading with a virtual investment portfolio worth one million dollars.
The winning team — Nicholas Cormier, Xavier Couture, Andrew MacLean Fraser, and Samuel Imbeault — came out with a portfolio value of $1,186,000, ahead of the second-place Université de Moncton team, whose portfolio grew to $1,181,000.
The competition used software that simulates a stock market trading floor, requiring students to react to different economic events like an oil market shock and giving them a taste of the fast-paced and complex environment of stock market trading.
“If you walked into the room you would think there was actually money involved. People were getting very excited and yelling out instructions,” Imbeault says. “We all started out with our suits and ties on, but we soon had our jackets off and our ties loosened.”
Cormier and MacLean Fraser were analysts of the information delivered by the game, while Couture and Imbeault were on the floor selling and buying stock.
The students applied investment and economics theories they learned in the classroom, but found the introduction of people’s behavior led to some interesting results.
“Determining the implications of macroeconomic factors on stock prices in theory is one thing, but to see how it works in practice is quite another,” says Cormier, a fourth-year student in honours economics.
Dr. Tim Hynes, director of the Ron Joyce Centre for Business Studies, says these types of realistic exercises play a significant role in the Commerce program at Mount Allison.
“I am delighted with the success of the Mount Allison team and happy for the students involved,” he says. “These types of experiential, immersive-learning exercises are integral to the undergraduate business experience here at the Ron Joyce Centre for Business Studies.”
The event was sponsored by National Bank, Louisbourg Investments, and Assumption Life. National Bank and the New Brunswick Securities Commission also took part in the game, acting as market makers in the respective stocks.
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