Playing at Investing
Even though investing is usually something grownups do, it doesn’t mean you can’t have fun and practice investing. Pick a favorite company and check that they’re on the stock market. You can do this on websites like BusinessWeek.com or Investopedia.com. Need some ideas of what stock to pretend to buy? Check out 17 Stocks Kids Will Love.
When you buy stock in a company, you own a small piece of that company. Companies usually sell stock to:
- Create new products
- Make the products they have better
- Hire more employees
- Grow or update their buildings
How to Play at Playing the Stock Market
Once you pick a company, see how much it’s selling its shares for. A share is the part of the company you can own. Purchasing a share, or more, makes you a “stockholder” in the company. You can research this online or in the daily newspaper.
- Get Help
All of the terms and numbers can get confusing, so this is usually a good time to bring a parent into your stock market game. Have them explain what you’re reading and help you decide if your stock would be a good investment. You might have to research the company to see if it’s making money or not.
- “Buy” Your Stock
Once you figure out what stock, or stocks, you want to buy it’s time to decide how many share you want and how much you’re going to spend.
- Keep Track
Decide how long you want to watch your stock and then track it regularly throughout that time period. Write down the weekly (or daily) performance either on paper or on a computer. You can even create a graph to better see how the company’s stock is performing.
- Time to Sell
Most adult shareholders will come to a point where they want to sell their stock. Just make sure that when that time comes for you, that you’re selling it more for what you bought it for. If that’s not possible at the moment you want to sell it, it might pay off to wait a few days or weeks and see what happens to the value.
Once you’ve gotten some of this stock marketing practice under your belt, you’ll be in a much better place when you grow up to play the stock market for real.