Turning $100,000 into more than $867,000 in three months is an impressive feat that won MBA student Scott Gordon first place and $150 at the first annual MBA Stock Market Challenge organized by the Michigan State University MBA Finance Association (FA) recently.
The task, completed through a simulator on www.investopedia.com, provided MBA students in the Broad College of Business $100,000 in virtual money and 12 weeks to trade.
“This challenge not only tests MBA students’ trading skills, but also their understanding of the current market situation and how it impacts the stock markets,” says MBA student and FA President Suyash Jain. “This is an ideal platform to apply knowledge learned in the classroom in a safe environment.”
Second place and $100 with just more than $487,000 went to Nicolas Acevedo. Craig Samuelson took third place overall and $50 with roughly $364,000. Individual awards and an extra $25 each in prizes were also given out to top earners from specific concentrations and the overall best option trader. Gordon received top Finance and best option trader. Samuelson received the top spot in Supply Chain Management. Other top spots included Nate Balko for Human Resources and Derek Rose for Marketing.
Of the 39 Broad College MBA participants, 20 made money, 14 lost and five stayed perfectly even. The results ranged from Gordon’s 767 percent increase to the last place finisher with a staggering 98 percent loss – a difference that reflects the complexity of the stock market and lessons learned during this challenge.
Bryant Miller, FA member and MBA student who helped organize and run the challenge, says, “While it is easier to take risks when it isn’t your own or even real money, the competition gave participants a great opportunity to learn about the risks and rewards of option trading while testing their business skills.”