USING A MODIFIED DIVIDEND DISCOUNT MODEL FOR STOCK MARKET GAMES

This paper presents a dividend discount model (DDM) modified for high-growth stocks as an investment decision tool for participants of stock market games. The participants input data from Value Line Investment Survey reports to the modified DDM for making their investment decisions. Comparing pre- a...

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Bibliographic Details
Published in:Southwestern economic review 2017-01, Vol.44, p.29-40
Main Authors: Yu, Geungu, Assad, Jean-Claude, Fuller, Phillip
Format: Article
Language:English
Subjects:
Capital assets
Curricula
Dividends
Dow Jones averages
Earnings per share
Economic theory
Equity
Fair value
Financial analysis
Financial literacy
Games
Growth models
Growth rate
Growth stocks
Households
Investments
Knowledge
Literature reviews
Market prices
Pedagogy
Portfolio management
Portfolio performance
Ratios
Risk premiums
Securities markets
Stock exchanges
Stock prices
Students
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Summary:This paper presents a dividend discount model (DDM) modified for high-growth stocks as an investment decision tool for participants of stock market games. The participants input data from Value Line Investment Survey reports to the modified DDM for making their investment decisions. Comparing pre- and post-tests of economic and financial literacy on participants conducted during a stock market game period, the authors of this paper find anecdotal evidence that the performance improvement of the experimental group is statistically significant at 0.1 level, confirming the usefulness of the game for improving economic and financial literacy.
ISSN:1941-7683
1941-7691