THE STOCK EXCHANGEParticipant Briefing SheetThis exercise simulates a simplified stock market in which participants can buy, sell, or trade stocks. The objective of the simulation is to use effective communication and critical thinking skills in order to earn as much money as possible while becoming familiar with the dynamics of the stock market.Goal: increase the total value of your assets to $90.Materials: each participant is given $20 in money, 5 stocks (one from each color/company), and a profile card A-D which contains additional information.Money = Poker Chips (White = $1, Red = $5, Blue = $25)Stocks = Colored index cards (or printed stock cards) of five colors Length: 8 roundsYou are a new investor in the stock market and possess current assets of $45 (or $20 in money and $25 in stock value). The goal is to increase the value of your assets to $90 by closing. In every round, the values of each of the five stocks (Big Blue, Risky Red, Old Yellow, Wacky White and New Green) may go up, down or stay the same. Participants may buy, sell or trade stocks each round as much as they want with each other. Only one profile per round may buy, sell or trade with the facilitator. Each participant is also given profile card A, B, C or D. Each of these four different profile cards contains different information that gives clues about the trends that will occur in stock values over the eight rounds. Participants may share, exchange or hold this information. The profile cards also determine who can buy or sell with the facilitator in a given round. Each profile will be able to trade with the facilitator two rounds:Profile A - Rounds 1 & 5Profile B - Rounds 2 & 6Profile C - Rounds 3 & 7Profile D - Rounds 4 & 8The stock prices that are announced each round are the prices at which the facilitator will buy or sell stocks. Prices on transactions between participants are set by the participants themselves. Since only one profile will be able to buy or sell with the facilitator, other participants may have to make deals with those who can transact freely with the facilitator. This may lead to changes in stock prices on the “floor.” Keep in mind that money will not increase in value so only stock investments will bring significant returns.FORMATION OF TRUSTS*Special note: During rounds four and six, students may form a trust through vertical integration if they possess a total of six investment stocks in the following combinations:two representing communication two representing transportation two representing resources OR two representing production*Steps to form a trust:- At least two people and up to three investors may form a trust by presenting the required stocks to Mr. Hall during round four or six. *The trust will then cash in the investment stocks and therefore give up their value as part of consolidation costs. *The trust will then have the goal of acquiring at least $120 in assets by the end of round eight.