SMG Essentials Workbook

SMG ESSENTIALS WORKBOOK
SMG Student Name: __________________________________
SMG Username: _____________________________________
SIFMA FOUNDATION
www.stockmarketgame.org
@SIFMAFOUNDATION
SMG Essentials Workbook
Welcome to the SIFMA Foundation’s Stock Market Game! You’re joining a community of students across the
nation that utilize our programs to advance their knowledge of saving and investing. Each year over 600,000
students participate in SMG and we look forward to developing the next generation of smart investors.
Whether brand new to saving and investing or looking to deepen your understanding of the capital markets, the
SMG Essentials Student Workbook is equipped with tools to support your financial education journey. You’ll be
able to guide your own SMG experience or follow along with your SMG Advisor.
The SMG Essentials Workbook consists of 10 topic-based sessions, each with its own video, corresponding
activity, and reflection.
Session 1: Intro to Investing

Session 2: Intro to Companies & Intro to Stocks
Session 3: Building Your Portfolio
Session 4: Conducting Research
Session 5: Assessing Risk
Session 6: Diversification
Session 7: Market Analysis
Session 8: Asset Allocation
Session 9: Portfolio Evaluation
Session 10: Wrap Up & Reflection
Students participating in SMG will develop academic and life skills including:
• Research, data analysis, and interpretation

• Critical thinking & problem solving
• Teamwork & collaborative decision-making
• Importance of following current events
• Presentation skills and creative thinking
SIFMA FOUNDATION SMG ESSENTIALS WORKBOOK

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Getting Started
You have likely received a Stock Market Game username and password from your SMG Advisor. If you did not
receive one, ask a teacher, parent or other adult to register at www.stockmarketgame.org to have one
created for you. Students are not permitted to complete or submit their own registration.
Your Stock Market Game username and password puts you in an investors’ shoes; allowing you the
opportunity to manage a virtual $100,000 stock portfolio and invest stocks, bonds, mutual funds and ETF’s
found on the New York Stock Exchange and Nasdaq. You can log-in to make trades online at
www.stockmarketgame.org or through the Stock Market Game app, available on both the Apple and Google
Play stores.
Sample Username: USA_20_ZZ123

Sample Password: SMGABC123
HOT TIP: Usernames and passwords are case sensitive and must include all characters, even underscores.
Usernames cannot be changed, but feel free to change your password to whatever you like. After logging in,
click the “resources” tab at the top of the portfolio, click “change password” and follow the prompts.
Keep an eye out for these bars! They’ll let you know when it’s time to log into your SMG portfolio.
Read thoroughly and pay attention while completing activities, they could be anywhere.
What’s learning without a little social media? Follow us to get answers to your market questions, tips on
navigating the portfolio, watch videos on investing concepts and get insight directly from financial
professionals! @SIFMAFoundation on Twitter, Instagram and Facebook and The Stock Market Game
Program on YouTube (www.youtube.com/c/thestockmarketgameprogram)!

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SESSION 1: INTRO TO INVESTING
Name:________________________________ Date:___________ SMG ID:___________________
Welcome to the world of investing! As a participant in the Stock Market Game (SMG), you’re joining a
community of students who will advance their knowledge of personal finance and investing, enabling them to
make more informed choices about money. Before diving in, take a look at our SMG Kick-Off video here.
Investing in your future and making smart financial choices is a habit. Let’s begin the journey of making more
informed choices by setting some financial goals.
A short-term goal is something you want to do in the near future (e.g. today, this week, this month, or even
this year). Some examples of short-term goals are saving to buy a new bicycle, new shoes, or a video game.
A long-term goal is something you want to do in the future (e.g. several years away). Some examples of long-
term goals are paying for college, buying a home, or your retirement.
Watch the Intro to Investing video below for more information on setting financial goals and the difference
between saving and investing.

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SESSION 1: INTRO TO INVESTING: ACTIVITY
Name:________________________________ Date:___________ SMG ID:___________________
MINI-LESSON VIDEOS:
SMG Kick Off & Intro to Investing: http://tinyurl.com/smgessentialminilessons
1. In the Intro to Investing video, you were asked to write down two short-term financial goals.
Please share your answer here and why you chose them.
A short-term goal is something you want to do in the near future (e.g. today, this week, this month,
or even this year). Some examples of short-term goals are saving to buy a new bicycle, new shoes, or
a video game.
Time Horizon:
How long do you think
Description of goal it will take? Why is it important to you?
Short -Term Goal #1
Short-Term Goal #2

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2. What were the two long-term financial goals you chose? Why did you choose them?
A long-term goal is something you want to do in the future (e.g. several years away). Some
examples of long-term goals are paying for college, buying a home, or your retirement.
Time Horizon:
How long do you
Description of goal think it will take? Why is it important to you?
Long-Term Goal #1
Long-Term Goal #2

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SESSION 1: INTRO TO INVESTING: REFLECTION
Name:________________________________ Date:___________ SMG ID:_________
Think about the short-term and long-term financial goals you recently developed. Would you save
your money or invest your money to achieve your goals? Why?
Use the space below to share your thoughts and write down your response.
Time Horizon: How would you reach

How long do you think your goal:
Description of goal Short or Long it will take? Invest or Save? Explain.
TermTerm
GLOSSARY
Investing: When you buy something with the expectation that it will earn you money over
time.
Long-Term Goal: Something you want to do in the future (e.g. several years away).
Risk: The possibility of loss or the chance of losing all or part of the value of an
investment.
Saving: Money not spent (examples: allowance, birthday present, part-time job, or other
source in a piggy bank or bank account).
Short-Term Goal: Something you want to do in the near future (e.g. today, this week,
this month, or even this year).

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SESSION 1: INTRO TO INVESTING: ROLES & RESPONSIBILITIES
Name:________________________________ Date:___________ SMG ID:_________
Team Role Description
Director It is the Director’s responsibility to coordinate the

efforts of everyone involved, ensure that
activities are completed successfully,
and that everyone is being treated fairly.
Director is responsible for summarizing the
team’s activities to the teacher and other
teams. The Director is responsible for
resolving disagreements among team
members.
Researcher The Researcher is responsible for gathering

and sharing research on potential
investments and trades, coordinating
the team’s findings, and summarizing them
into a cohesive presentation that can be
easily shared.
Portfolio The Portfolio Coordinator monitors the

Coordinator team’s portfolio transactions, records all of
the transactions, and ensures the portfolio
data displayed is correct. The Coordinator
reviews the Transaction History, Transaction
Notes, Account Summary, and Account
Holdings pages for accuracy.
Data Entry The Data Entry Coordinator is responsible for

Coordinator ensuring trades are entered and executed correctly.
No other role, including the Director, should enter
a trade without the Data Entry Coordinator knowing.
The Coordinator checks the portfolio’s
Transaction Notes page for any error messages.
Lead Reporter The Lead Reporter compiles the team’s

meeting notes. The Reporter’s job is to
maintain a current journal of activities
and the status of the portfolio. The
Reporter works with other members of the
team to collect and organize their reports.

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SESSION 2: INTRO TO COMPANIES & STOCKS:
Name:________________________________ Date:___________ SMG ID:_________
MINI-LESSON VIDEOS
Intro to Companies & Intro to Stocks: http://tinyurl.com/smgessentialminilessons
Stocks represent a share of ownership in a publicly held company. The stockholder has a claim on the assets
of a company in exchange for the money paid to purchase the stock. As an owner, the stockholder is sharing
the wealth AND the risk of ownership with other owners of the company. No matter how few shares of stock
you own, you are part owner of the business.
Typically, a company issues stock in order to raise money to expand and build their operations. The company
goes to a financial services firm that specializes in underwriting an initial public offering (IPO) of stock to help
them with this process. The financial firm gives the company the money it needs to expand, and issues stock.
This stock is sold to the public in what is known as the secondary market. Stockholders, also called
shareholders, are people who buy the stock.
People buy stock to earn dividends and with hope of selling the stock at a higher price than they originally
paid. Stockholders may receive part of the company’s profits through dividends. Public companies are not
obligated to pay dividends, but most do. Stockholders have limited liability; that is, while they can lose the
money they invested to buy the stock, they are not responsible for the company’s financial debts should the
company fail.
A stockholder should make investment decisions based on his/her “risk tolerance.” All investments have some
risk. A somewhat risky investment with great growth potential might be a good for someone who is 28 and
financially stable, but not for someone who is 60 and plans on retiring in five years. A 28-yearold has time to
regain losses before retirement; the 60-year old may not.
Stocks are traded on stock exchanges. The two major U.S. exchanges are the New York Stock Exchange and
the NASDAQ. Both are located in New York City. Stocks usually trade in lots of 100; anything less than 100
called an “odd lot.” Stocks can range in price from a few dollars to hundreds of dollars per share.
A publicly traded company pays increased taxes in the form of corporate income tax. Each state has its own
rules regulating public companies. Public companies must also comply with rules and regulations imposed by

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the securities industry as well as the federal Securities and Exchange Commission (SEC). They must also
submit an annual report to the SEC outlining all their financial information.
There are two types of stock, common and preferred. When you own common stock, your shares represent
ownership in the corporation. They give you the right to vote for the company's board of directors, and
benefit from its financial success. Some corporations issue preferred stock in addition to common stock.
Preferred stocks often pay a fixed dividend on a regular schedule. The price of preferred stock tends to be less
volatile than that of common stock. Preferred stocks tend to move with changing interest rates. Unlike owners
of common stock, owners of preferred stocks are not entitled to vote on corporate matters.

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SESSION 2: INTRO TO COMPANIES & STOCKS: ACTIVITY
Name:________________________________ Date:___________ SMG ID:_________
Let’s practice naming popular brand and company names. Write in a brand name for the product
mentioned in the story below.
Jim’s Birthday Present
Jim rushes out of P.E. and bends down to tie his (sneaker name)
before rushing out the front doors of the school. It’s been a long week and he’s excited to get home,
relax, and watch his favorite show on (video streaming service).
While watching his favorite videos, he never skips the ads. They’re his favorite part since he loves to
analyze them and see what can be done to make them even better. He hopes to one day have a career
in advertising. He thinks (car name),
(tech company) and (company
name) make the best ads but believes the best way to increase interest in a product or service is
through social media. His favorites include (social media
company) and (social media company). However, most of his
attention lately has gone to ads from (restaurant name) because
he's hoping to celebrate his birthday there with his family.
His grandmother is supposed to come by over the weekend and promised to take him shopping for his
birthday. But it’s never without a catch. His grandmother will only consider an item made by a

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sustainable company. A sustainable company is one that has made addressing environmental or
social causes a part of their business. He’d like to address
(environmental or social cause) to make a positive change in the world. He’s not sure whether
(company name) supports it too, so he’ll have to do his research.
It also doesn’t hurt that (store or company name) is right next
door to the new (movie theater name) and maybe they can catch
a movie.
When he gets home, he’s even more excited because he sees that his Mom went to
(supermarket name) to pick up some of his favorite snacks!
While rushing to grab the (snack name), Jim accidentally trips
over his little sister's (toy name). He’s always tripping over her
toys and wishes (toy company) could create a way for toys to put
themselves back.
"Mom, I think we’re all out of (snack name)! " Jim hollered. He
wondered if (food/snack company name) knows that they need
to increase the amount they make available in stores. Everyone he knows loves them, and sometimes

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you can only find it at (supermarket or store name) or online
at (online retailer name).
"Jim, I told you we would look at the sales and deals being advertised to see what is available," Mom
replied. "Do you think we could pick up a little extra next time? You know, just in case we have
guests." Jim asked, hoping to sound convincing. "Good try," Mom chuckled as she tossed Jim an
envelope. "It's from Aunt Cathy."
Jim ripped open the envelope and almost missed the gift card for
(store or company name) that fell out. “Looks like Aunt Cathy knows how much you love that
company too. You’ll probably end up working there as much as you talk about them. But until then,
you should consider using some of the money you saved from your summer job to buy shares of
stock.” Jim looked up confused. "I don't get it. What's shares of stock? And why would I use my
money to buy it?" Jim exclaimed.

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SESSION 2: INTRO TO COMPANIES & STOCKS: REFLECTION
Name:________________________________ Date:___________ SMG ID:_________
Look up the brands you chose to complete the Jim’s Birthday Present activity. Make a list of the
brands owned by publicly traded companies.
If you do not have enough publicly traded companies to complete the table below, research publicly
traded companies that make the brands you like.
HOT TIP: You can find this information directly on a company’s website or simply enter “is
company XYZ publicly traded” into your search engine of choice.
BRAND COMPANY
GLOSSARY
Brand: The name a company gives a product it makes or a service it provides.
Company: A business formed to manufacture or supply products or services for profit.
Private Company: A company that is privately owned by a group of people. Shares of the
company cannot be purchased.
Product: An item sold by a company.
Public Company: A company whose shares can be purchased.

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SESSION 3: BUILDING YOUR PORTFOLIO
Name:________________________________ Date:___________ SMG ID:_________
MINI-LESSON VIDEOS
Building Your Portfolio & SMG Trading Portfolio: http://tinyurl.com/smgessentialminilessons

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SESSION 3: BUILDING YOUR PORTFOLIO: ACTIVITY
Name:________________________________ Date:___________ SMG ID:_________
1. Review the short-term and long-term goals you shared in the Intro to Investing: Activity. Given
what you’ve learned about risk tolerance so far, how would you rate your risk tolerance on
reaching each goal?
Would it be a “5” because you because you would have time to earn back any money you may lose,
or would it be “1” because you don’t have the time or resources to earn back any lost money? Or
would it be somewhere in the middle? Explain.
Low Risk Medium Risk High Risk

Tolerance Tolerance Tolerance
1 2 3 4 5
-
Tolerance
Description Level 1-5 Explanation
Long-
Term
Goal #1
Long-
Term
Goal #2

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2. Which of the companies you chose in the Intro to Companies & Stocks: Activity would help you
achieve your investment goals? Are there companies you would add to that list? Explain.
Description Company Name Explanation

Short-
Term
Goals
Long-
Term
Goals

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SESSION 3: BUILDING YOUR PORTFOLIO: REFLECTION
Name:________________________________ Date:___________ SMG ID:_________
Review your revised goals and investment plans and determine which of the companies chosen in the
Intro to Companies & Stocks: Activity will be your first Stock Market Game trade. In the space
below, write down your reasons for choosing the company.
GLOSSARY
Investment Strategy: A plan designed to help you achieve your investment goals which
depends on factors including risk tolerance and values (sustainable investing).

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SESSION 4: CONDUCTING RESEARCH
Name:________________________________ Date:___________ SMG ID:_________
MINI-LESSON VIDEOS
Conducting Research & Entering Stock Trades: http://tinyurl.com/smgessentialminilessons
Reading a Stock Quote:
A stock quote provides you with pricing information. This information helps you determine whether
a stock is a good investment or not. Different financial news and research sites may organize their
stock information differently but will provide essentially the same information. The example below is
taken from a NYSE stock quote.
Company Symbol
The name of the company. The company’s stock/ticker symbol.
Current Price Price Change Percent Price Change
This is the current per share This is the difference This is the difference in price
price of the stock. between the stock’s current expressed as a percentage.
price and its last reported
price.
Prev Close Day’s Range
The previous close is the stock’s closing price The highest price and lowest price of the
on the previous trading day. stock so far today.
Open 52wk Range
The first trade of stock today is its opening The highest price and lowest price of the
price. stock so far over a 52-week period.
Bid Volume
An offer made to buy this stock. The total number of shares traded so far
today.
Ask Avg Vol (3M)
The price at which a seller wants to sell this The average of the total number of shares
company’s stock. traded in the past three months.

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1 y Target Est Market Cap
The median target price as predicted by The total current market value of all
analysts covering the stock. outstanding shares of a company.
Beta P/E
Beta measures volatility. A number less than A company’s closing price divided by its latest
1 means less volatility and a number greater annual earnings per share.
than 1 means more volatility.
Next Earnings Date EPS
The next time the company will report its EPS stands for Earnings Per Share. It is a
Earnings. company’s profit or earnings divided equally
among all the shares investors own.
Div & Yield
A dividend is a payment many companies
make to its stockholders. Yield is the amount
of cash that returns to stockholders.

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SESSION 4: CONDUCTING RESEARCH: ACTIVITY
Name:________________________________ Date:___________ SMG ID:_________
Enter the stock quote information for five of the companies you selected in the Intro to Companies &
Stocks: Activity.
You can also choose a new company to research. It can be a company from the SMG mini-lesson
videos or one that you are interested in learning more about.

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Review the data you just gathered. What does a company’s stock quote tell you about the company?
Are you still interested in investing in the company? Explain your thoughts using the space below.

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SESSION 4: CONDUCTING RESEARCH: REFLECTION
Name:________________________________ Date:___________ SMG ID:_________
Review the companies you chose in the activity with your team. In addition to comparing the stock
quote information for each company, consider the company’s industry and public opinion about the
company’s products and/or services.
Decide which new company would make the best investment and purchase shares of it for your SMG
portfolio.
Which part of the company’s stock quote was the most helpful in analyzing its investment potential?
In the space below explain your reason why, your thought process, and investment strategy.
GLOSSARY
Previous Close is the stock’s closing price from the previous day.
52-Week Range is the highest price and the lowest price of the stock over a 52-week
period (year).
P/E Ratio (Price-to-Earnings Ratio) is a measure of a company’s stock price relative to

its earnings.
Beta measures volatility (rapid or unexpected change) as compared to the overall stock
market.

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SESSION 5: ASSESSING RISK
Name:________________________________ Date:___________ SMG ID:_________
MINI-LESSON VIDEOS
Assessing Risk: http://tinyurl.com/smgessentialminilessons

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SESSION 5: ASSESSING RISK: ACTIVITY
Name:________________________________ Date:___________ SMG ID:_________
Based on factors such as age, salary, financial obligations, and family situation, people’s risk
tolerances vary greatly. Using what you’ve learned so far what do you think is the risk tolerance for
the individuals below? L=low; M=moderate; H=high
Risk Tolerance
(L, M, H)
1. TJ is 26 years old. Next week he starts a new job with a
much higher salary than his previous job. He is single and
does not have any loans. He plans on investing a part of his
new paycheck.
2. June is 30 years old and a single mother with two children,

ages 10 and 12. She is saving money to help pay for their
education. She wants them to go to college. It will be six
years before she needs money to help her first child with
college.
3. Erica is 62 years old, in good health, and enjoys her job as

a teacher. Her husband also works. Their children are
grown and do not depend on them financially. Tina and her
husband plan on retiring in three years.
4. Sam is 35 years old and works as a cook at a diner. His job

does not pay much so he struggles to pay his rent and buy
groceries. He and his wife have a three-month old baby. His
grandmother passed away recently and left a $5,000
inheritance. Sam wants to invest this money.
5. Blair just celebrated her 20th birthday. She will graduate

from college next semester. Her parents have paid all her
college costs and have promised to buy a small house for
her when she graduates and starts her first job. Blair works
on the weekends and during the summer. She has saved
several hundred dollars with the goal of investing the
money.

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SESSION 5: ASSESSING RISK: REFLECTION
Name:________________________________ Date:___________ SMG ID:_________
Review your answers to the activity. Do you have similar risk tolerances? How risky do you believe
you should be right now? Why?
Did you consider the person’s age and financial goals when determining their risk tolerance? What
advice would you offer them to mitigate or lessen their risk?
Check the stock trade you entered as a part of the Conducting Research: Activity. Was it executed
successfully? How is it performing? Decide whether or not you should buy more. Based on what you
know now, is it a risky stock?
GLOSSARY
Risk is the chance of losing all or part of the value of an investment.
Risk Tolerance is a measure of how much risk you are willing to take. It is based on several
factors including age, time horizon, lifestyle, and personality.
Time Horizon is the amount of time before invested funds need to be liquidated.
Risk Management is having strategies that help mitigate risks associated with your
investments.

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SESSION 6: DIVERSIFICATION
Name:________________________________ Date:___________ SMG ID:_________
MINI-LESSON VIDEOS
Diversification & Entering Mutual Fund Trades: http://tinyurl.com/smgessentialminilessons
DIVERSIFICATION 101
Have you ever been told: Don’t put all of your eggs in one basket? Do you know what people mean
when they say that? In the context of investments, it means invest in a variety of companies through a
mix of stocks, bonds, and funds. Investors do this to protect themselves from losing a lot of money
when the economy is bad.
For example, in a tough financial time, people are less likely to buy new TVs and other electronic
devices. The lack of business would lead to a drop in the stock prices of consumer electronics retailers
like Best Buy. If you only had Best Buy stock in your portfolio, your entire portfolio would lose
money.
However, if you had stock in a company like Walgreens, that sells health and hygiene products as
well as dispenses prescription medication, you might not lose as much. This is because people will
need to maintain their health, regardless of the economy. Their steady business and stock price
would protect your investment portfolio from heavy losses.

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SESSION 6: DIVERSIFICATION: ACTIVITY
Name:________________________________ Date:___________ SMG ID:_________
Grouping stocks into sectors and industries helps investors to compare a stock’s performance against
other companies producing similar products or providing similar services. Use Yahoo! Finance to find
one stock for an industry under each sector listed below. Provide the stock name, ticker symbol,
current stock price, and products/services of that company.

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SESSION 6: DIVERSIFICATION: REFLECTION
Name:________________________________ Date:___________ SMG ID:_________
Discuss the companies you chose for your sector table with your team. Were there any similarities?
Which companies would you choose to diversify your portfolio? Which sectors are they from? Why
did you choose them? Use the table below if you need help organizing.
Sector Company Name Ticker Price Product/Service
If you are working independently, use the space below to share your thoughts.
GLOSSARY
Diversification is a risk management strategy in which you spread your investment
dollars among different securities, sectors, and industries.
Sector is a broad group of stocks often in the same industry.
Industry is a more specific group of companies producing similar products or services.
Index reports changes in a specific sector or in the economy.
Beta measures volatility (rapid or unexpected changes).
Market Capitalization (market cap) is the total dollar value of a company’s outstanding
shares of stock.
Mutual Fund is an investment that pools money from many investors and invests in a
diversified portfolio of stocks, bonds, and other securities.

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Now it’s time to think big. Use the circle below to divide up and draw how you would like your SMG
portfolio to be diversified. Label your sections with the sector name and percentage. Your
percentages must equal 100%. Example: Healthcare 25%, Financials 10%, etc.

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SESSION 6: MUTUAL FUND QUOTE (NAV)
Name:________________________________ Date:___________ SMG ID:_________
Mutual Funds 101

A mutual fund investor can make money in several ways:
• Funds earn income from interest or dividends on its investments and distribute it to
shareholders in an income distribution (the frequency of distribution depends on the fund).
• Funds produce capital gains by selling securities at a profit, and distribute those capital gains
to investors, usually at year end.
• Investors sell their shares of the mutual fund at a higher price than they paid for them.
Types of Mutual Funds
There are many types of mutual funds for investors to choose from: balanced funds, stock funds,
bond funds, sector funds, money market funds, etc. Most mutual funds are open-end funds. This
means the fund will usually sell as many shares as investors want to buy. If you sell shares of your
open-end funds, you sell them back to the same mutual fund pool you bought them from. Sometimes,
open-end funds will stop selling shares to new investors when they grow too large to be managed
effectively.
There are some mutual funds that have been created with specific social goals. For example,
companies with environmentally friendly business practices, companies that are considered “family
friendly”, and companies promoting diversity and equity.
Hot tip: Most financial news sites provide access to a list of “Top Funds” and news specific to mutual
fund investors. You can also visit the Top Holdings section of your portfolio (found within the
Account Holdings tab).

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SESSION 6: MUTUAL FUND QUOTE (NAV)
Name:________________________________ Date:___________ SMG ID:_________
Review the Glossary below and start exploring Yahoo! Finance for mutual funds. Select a mutual
fund you are interested in investing in and fill out the activity sheet to dive a little deeper.
GLOSSARY
Mutual Fund is an investment that pools money from many investors and invests in a
diversified portfolio of stocks, bonds, and other securities.
Net Assets is the total value of the mutual fund’s assets.
Net Asset Value (NAV) represents the value of one share of the mutual fund (similar to a
price quote for a stock share).
Year-To-Date (YTD) Return is the percentage increase or decrease in value for one
share since the beginning of the calendar year.
Expense Ratio is how much it costs to maintain the fund in proportion to the value of the
mutual fund. Costs can include management fees.
Holdings Turnover is the rate a mutual fund replaces its assets annually (yearly).
Morningstar is a financial services firm. Morningstar's research and recommendations
are considered highly influential in the asset-management industry. Visit
www.morningstar.com.
Fund Name Ticker NAV YTD Return Expense Holdings

Ratio Turnover

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SESSION 6: MUTUAL FUND QUOTE (NAV): ACTIVITY
Name:________________________________ Date:___________ SMG ID:_________
Briefly describe the fund you are interested in. What companies and industries is it invested in? Is it
invested in other assets in addition to stocks?
How has the fund performed over the last five years?
What are the fund’s top 3 holdings?

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What is Morningstar’s opinion of this mutual fund? Visit www.morningstar.com.
Morningstar Rating (# of Stars) Morningstar Risk Rating
Do you believe this fund is a good investment? Explain. If so, enter the mutual fund trade in your
SMG portfolio. If not, continue to research until you can select a mutual fund investment.

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SESSION 7: MARKET ANALYSIS
Name:________________________________ Date:___________ SMG ID:_________
MINI-LESSON VIDEOS
Market Analysis: http://tinyurl.com/smgessentialminilessons

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SESSION 7: MARKET ANALYSIS: ACTIVITY
Name: ________________________________ Date:___________ SMG ID:_________
Investors review a company’s current and estimated future earnings to evaluate the company's value.
Some financial news and information websites provide earnings information through a “financials”
link in their stock quotes.
Mouseover Yahoo! Finance’s Mouseover the bars on the CNBC Earnings Trends bar graph for a written
Earnings graph to view description of a company’s earnings for a specific point in time.
comparisons between actual
and estimated earnings.
Compare the previous year’s earnings information for two companies you would like to buy for your
portfolio.
“Consensus” in an earnings report refers to the combined estimated earnings of analysts covering the
company. “Surprise” refers to an instance where a company’s actual earnings is above or below
consensus.
Use Yahoo! Finance to complete the following table:
YEAR
COMPANY NAME
Q1 Q2 Q3 Q4
ESTIMATED
ACTUAL
CONSENSUS (Beat/Missed)

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YEAR
COMPANY NAME
Q1 Q2 Q3 Q4
ESTIMATED
ACTUAL
CONSENSUS (Beat/Missed)
Which company beat analysts’ estimates more often?
Which company’s actual earnings were most often higher than their estimated earnings?
What other factors will you include in deciding which company may be a better investment for you?

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SESSION 7: MARKET ANALYSIS: REFLECTION
Name:________________________________ Date:___________ SMG ID:_________
Review the companies you selected as potential investments. Which companies would most likely be
influenced by the news? Using the space below, explain how current events may increase or decrease
its value. If you are working in a group, discuss with your team.
GLOSSARY
Fundamental Analysis is assessing a company’s financial history and earnings, as well as
analyzing outside factors (demand, news/current events, etc.) to determine if it is a good
investment.
Earnings is the profits that remain after subtracting a company’s expenses from its revenue
(money collected for product/service).
Quarterly Earnings Report is published once a quarter (4x a year) for investors.

40
SESSION 8: ASSET ALLOCATION – ABOUT BONDS
Name:________________________________ Date:___________ SMG ID:_________
MINI-LESSON VIDEOS
Asset Allocation: Bonds & Beyond & Entering Bond Trades: http://tinyurl.com/smgessentialminilessons
Bonds 101:
A bond is an IOU for a loan you’ve made to an institution like the government or a corporation.
Similar to when you take out a car loan or a mortgage, when the government or a corporation borrows
money from you they do so for a certain period of time at a certain rate of interest.
Bonds are not like stocks. When you purchase a bond you do not own part of the company that issued
the bond. When you buy a bond you are lending money to the issuer, who can be a corporation, the
government or a government agency. In return for the loan the issuer promises to pay you (the bond
investor) a specific rate of interest known as the “coupon rate”. You are paid the interest on a
predetermined schedule (usually quarterly) for the life of the bond. The life of a bond refers to the
period of time the issuer has to repay the investor. The issuer also promises to repay the face value
when the bond matures (i.e., comes due). The face value is also known as “the principal” or the “par
value.” Most bonds are issued with a $1,000 face value.
“Investment grade bonds” are the highest rated by Moody’s, Standard & Poor’s, and Fitch. (the main
investment rating services in the United States). A bond that is rated investment grade is considered
to have the least chance of missing interest payments or failing to pay back the principal (face or par)
value.
Bonds are also known as fixed-income investments because the investor knows the rate of interest
and the interest payment schedule in advance of purchase. Bonds are often included in a diverse
investment portfolio. There are a variety of bonds available. Described below are the bonds most
familiar to individual investors:
Corporate bonds
Bonds are major sources of corporate borrowing. Debentures, the most common type of corporate
bond, are backed by the general credit of the corporation, while asset backed bonds are backed by
specific corporate assets, such as property or equipment.

41
Municipal bonds
Millions of bonds have been issued by state and local governments. General obligation bonds are
backed by the full faith and credit of the issuer, and revenue bonds by the income generated by the
particular project being financed.
Agency bonds
Some government sponsored but privately owned corporations (like Fannie Mae and Freddie Mac),
and certain federal government agencies (like Ginnie Mae and Tennessee Valley Authority) issue
bonds to raise funds either to make loan money available or to pay off new projects.
U.S. Treasury bonds

U.S. Treasury Bonds are backed by the full faith and credit of the United States government. When
the government spends more than it collects in taxes and other revenues, it issues Treasury notes,
bills, and bonds to borrow the money to pay the difference. Treasury Bonds have the longest term or
period of time before the loan must be repaid (10 years or more). Treasury Bills have the shortest
(less than two years).

42
SESSION 8: ASSET ALLOCATION: ACTIVITY
Name:________________________________ Date:___________ SMG ID:_________
Use the table to recommend a bond to each of the following investors (You may recommend more
than one type):
Type Maturity Risk Interest
Corporate 1 - 100 years Low - high Highest, linked to risk
Municipal 1 - 50 years Low Low, but linked to risk
Agency 1 - 20 years Low - very safe Medium
Treasury Notes 2, 5, & 10 years Very safe Low
Treasury Bills 4, 13, & 26 weeks Very safe Low
1. Jeremy plans to retire in the next two years. He would like to supplement his
retirement income with a very safe investment. Which types of bonds should he
consider?
2. Andrea is a young investor who would like to invest in a bond that would earn
her as much money as possible. Which bonds should she consider?
3. Nat wants the benefits of investing but is very afraid of losing money. She is also
uncomfortable about not being able to access her money for longer periods of
time. Which bonds may be right for her?
4. Think about your current life circumstances. Which bonds would be the best
investment for you? Why?

43
SESSION 8: ASSET ALLOCATION: REFLECTION
Name:________________________________ Date:___________ SMG ID:_________
Review the benefits of asset allocation. Research and select one bond for each bond type: corporate,
municipal, or government. Decide which bond would best help you reach your investment goal.
Once you have decided, buy the bond for your SMG portfolio.
Complete the table below to help organize your thoughts.
Bond Type Symbol
Description (Issuer Name) Next Payment Date
Price Current Yield
Bond Type Symbol
Price Current Yield
Bond Type Symbol
Price Current Yield

44
Briefly explain how the bond you selected will help you reach your investment goal.
GLOSSARY
Asset Allocation is an investment strategy that balances risk and reward by spreading your
investment across asset classes based on your financial goals, risk tolerance, and time
horizon.
Asset Class is a group of investments that share similar characteristics, are subject to the
same regulations, and often behave the same in the market.
Bond is a loan made by an issuer (borrower) to a lender (investor).
Face Value (Par Value) is the issued (loan) amount.
Coupon (interest payments) is the amount the issuer pays on par value.
Coupon Rate (interest rate) determines the amount of the coupon payment.
Maturity Date is the day the bond issuer must pay the bond’s face/par value back to the lender.

45
SESSION 9: PORTFOLIO EVALUATION:
Name:________________________________ Date:___________ SMG ID:_________
MINI-LESSON VIDEOS
Portfolio Evaluation: http://tinyurl.com/smgessentialminilessons
Hot Tip: Most companies have their annual reports easily accessible on their investor relations sites.
To quickly find a company’s investor relations website conduct an internet search for the terms
“[Name of company] investor relations.”

46
SESSION 9: PORTFOLIO EVALUATION: ACTIVITY
Name:________________________________ Date:___________ SMG ID:_________
Review the latest annual reports for two companies in your SMG portfolio. Record their net income
and revenue information. Also consider the companies’ annual report highlights, future goals, current
stock price, 52-Week high and low, ESG initiatives, and other information.
After reviewing the information, decide if you will buy more shares of the companies, sell your shares,
or just hold on to them. Be sure to include the other company information you considered when you
write the rationale for your decision.
NET
NAME INCOME REVENUE BUY/SELL/HOLD RATIONALE

47
SESSION 9: PORTFOLIO EVALUATION: RELFECTION
Name:________________________________ Date:___________ SMG ID:_________
Based on what was recommended in the video, are there changes you might make to your current
holdings? Which companies would you or your team buy, sell, or hold? Would you add new
companies?
What were the details that impacted your decision? Complete the table below to help organize your
thoughts.
Company Name Symbol Buy/Sell/Hold Rationale
GLOSSARY
Annual Report provides information on what a company does, its financial performance,
as well as its plan for the future.
Revenue is the money collected for a product or service.
Net Income is the total earnings (profit) after all expenses and taxes are paid.

48
SESSION 10: WRAP UP & REFLECTION
Name:________________________________ Date:___________ SMG ID:_________
MINI-LESSON VIDEOS
End of Session Reflection: http://tinyurl.com/smgessentialminilessons

49
SESSION 10: WRAP UP & REFLECTION: ACTIVITY
Name:________________________________ Date:___________ SMG ID:_________
Review your portfolio’s performance. Use the table to organize your portfolio’s information.
Above/Below
Current Value ($) Start Value
Total Equity
S&P 500
Total Realized Gains
Dividend Payments
Net Equity Gain
Review the Gains/Losses section of your Account Holdings. Which company performed as well or
better than you expected? Which company performed below your expectations? Why do you think
this was?

50
COMPANY NAME TICKER % GAIN/LOSS RATIONALE
BEST
PERFORMING
WORST
PERFORMING

51
What steps would you take to increase your portfolio’s overall performance? Explain.
Would your SMG portfolio help you reach the real world short- and long-term goals you wrote down
in the first activity? Explain.

52
SESSION 10: WRAP UP & REFLECTION
Name:________________________________ Date:___________ SMG ID:_________
Create a presentation describing what you feel are the three most important lessons you have learned
from playing The Stock Market Game. Use the questions below as a guide for your presentation.
Please Note: You do not have to answer each question. Feel free to discuss your SMG experience in a
way that is honest. Be sure to give each team member a chance to share their thoughts and say a few
words about their experience.
What do you feel was the most important

thing you learned from participating in the
Stock Market Game?
GameGame™? Ga
How will you apply what you have learned

from The Stock Market Game to achieve your
short-term and/or long-term financial goals?
Share one new fact you learned about stocks,

bonds, and mutual funds from The Stock
Market Game.
What advice would you give a student

participating in The Stock Market Game for
the first time?

53
SESSION 10: WRAP UP & REFLECTION: ADDITIONAL ASSESSMENTS
Write
• on the rationale behind all transactions
• an essay explaining an investment strategy that did or didn’t work
• about what a student would have done differently
• a position paper on a decision a company made that affected their stock price
• on a topic like the 1929 stock market crash
• on the InvestWrite competition topic
Track
• the movement of a stock price over the trading session using a graph
• your portfolio’s performance using a graph
Analyze
• a personal investment plan based on personal goals
• various stocks by comparing strategies of stock selection
• the differences between speculation and investment
• the influence of current events on stock prices and trading decisions
• a current event and the economic environment that could affect investment decisions
• articles on stocks bought and sold
• ads for publicly traded companies that produce products that students buy
• and select a variety of stocks from different industries to form your own mutual fund
• and select stocks from your own state or stocks of regional interest
Report
• on a specific company in a written report or PowerPoint presentation that includes
information on:
o a product or service
o financial data
o current events related to changes in stock price
o major competitors and recent challenges
• on an interview with a stockbroker, business owner, investor, or Invest It Forward volunteer
• on a book on financial investments by writing a book report
• with a collage of important daily news stories found in the financial sections of newspapers or
websites
• on business or financial-related videos by keeping a log of key stock market newsmakers.
Create
• a portfolio for a client in the same way that a broker or financial planner would
• a mural or bulletin board on investing
• a crossword puzzle or bingo board using investing terms
• a skit about stock markets o role-play a stock trade with a broker or a broker trying to convince
a potential buyer that a particular stock would be profitable
• a video or podcast on investment news and analysis
• a cartoon, comic book, or board game related to stock markets
54
Congratulations! You’re one step closer to achieving your financial goals! But the journey has only
just begun. Equipped with your newfound investment knowledge, you now have the tools to make
smarter financial decisions and impact not only your life, but that of your family, your community
and ultimately the world.
Thank you for participating in the Stock Market Game. You are our biggest and best investment and
the motivation for what we do at the SIFMA Foundation. Take a look for yourself in this video.

55

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SMG ESSENTIALS WORKBOOK

SMG Student Name: __________________________________

SMG Username: _____________________________________

Session 1: Intro to Investing

• Research, data analysis, and interpretation

SIFMA FOUNDATION SMG ESSENTIALS WORKBOOK

Sample Username: USA_20_ZZ123

SIFMA FOUNDATION SMG ESSENTIALS WORKBOOK

SIFMA FOUNDATION SMG ESSENTIALS WORKBOOK

SMG Kick Off & Intro to Investing: http://tinyurl.com/smgessentialminilessons

Short -Term Goal #1

SIFMA FOUNDATION SMG ESSENTIALS WORKBOOK

SIFMA FOUNDATION SMG ESSENTIALS WORKBOOK

Time Horizon: How would you reach

SIFMA FOUNDATION SMG ESSENTIALS WORKBOOK

Team Role Description

Director It is the Director’s responsibility to coordinate the

Researcher The Researcher is responsible for gathering

Portfolio The Portfolio Coordinator monitors the

Data Entry The Data Entry Coordinator is responsible for

Lead Reporter The Lead Reporter compiles the team’s

SIFMA FOUNDATION SMG ESSENTIALS WORKBOOK

Intro to Companies & Intro to Stocks: http://tinyurl.com/smgessentialminilessons

SIFMA FOUNDATION SMG ESSENTIALS WORKBOOK

SIFMA FOUNDATION SMG ESSENTIALS WORKBOOK

Jim’s Birthday Present

relax, and watch his favorite show on (video streaming service).

in advertising. He thinks (car name),

(tech company) and (company

through social media. His favorites include (social media

company) and (social media company). However, most of his

attention lately has gone to ads from (restaurant name) because

he's hoping to celebrate his birthday there with his family.

SIFMA FOUNDATION SMG ESSENTIALS WORKBOOK

social causes a part of their business. He’d like to address

(company name) supports it too, so he’ll have to do his research.

It also doesn’t hurt that (store or company name) is right next

(supermarket name) to pick up some of his favorite snacks!

While rushing to grab the (snack name), Jim accidentally trips

wondered if (food/snack company name) knows that they need

SIFMA FOUNDATION SMG ESSENTIALS WORKBOOK

at (online retailer name).

envelope. "It's from Aunt Cathy."

money to buy it?" Jim exclaimed.

SIFMA FOUNDATION SMG ESSENTIALS WORKBOOK

Company: A business formed to manufacture or supply products or services for profit.

Product: An item sold by a company.

Public Company: A company whose shares can be purchased.

SIFMA FOUNDATION SMG ESSENTIALS WORKBOOK

Building Your Portfolio & SMG Trading Portfolio: http://tinyurl.com/smgessentialminilessons

SIFMA FOUNDATION SMG ESSENTIALS WORKBOOK

Low Risk Medium Risk High Risk

SIFMA FOUNDATION SMG ESSENTIALS WORKBOOK

Description Company Name Explanation

SIFMA FOUNDATION SMG ESSENTIALS WORKBOOK

SIFMA FOUNDATION SMG ESSENTIALS WORKBOOK

Conducting Research & Entering Stock Trades: http://tinyurl.com/smgessentialminilessons

Reading a Stock Quote:

SIFMA FOUNDATION SMG ESSENTIALS WORKBOOK