Minnesota FFA Commodity Challenge Concordia College, Offutt School of Business - Participant Guide - StockTrak
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Minnesota FFA Commodity Challenge
Sponsored by
Concordia College, Offutt School of Business
Participant GuideGreetings Minnesota FFA, The Offutt School of Business at Concordia College is happy to offer a commodity trading challenge for Fall 2021. This online program will bring real world investment strategies and practices used in our Parke Technology Center to Minnesota FFA participants. We hope this opportunity will be a great introduction to commodity investment and an engaging way for students to continue to sharpen their decision making and critical thinking skills. Teams will begin with a pre-populated portfolio of $200,000 USD that they will become familiar with during an 11-week portfolio simulation utilizing the Concordia College Global Markets Platform. All teams start the simulation with an identical $200,000 starting portfolio that consists of 30 stocks from the North American economy. The stocks, ETFs (exchange traded funds), and commodity futures have been pre-selected for you on an equal weight basis (means the initial capital is distributed equally) as a starting point to better acquaint you with the agricultural economic inputs that go into the industrialized production, movement, and sale of food stuffs. Teams will manage their portfolio, according to the rules, to win some great cash prizes for their FFA chapter. Registration is open, trading will begin on September 20, and terminate at market close on December 3. Winners will be announced by December 15. (Note: The registration window will remain open until October 4.) Please use the following advisor guide to familiarize yourself with the Commodity Challenge. We hope your students have a great experience. Darin Stromstad ASSISTANT DIRECTOR OF SPECIAL PROJECTS AND CAREER SERVICES OFFUTT SCHOOL OF BUSINESS 218.299.3486 | stromsta@cord.edu ConcordiaCollege.edu | 901 8th St. S., Moorhead, MN 56562
The Simulation
Trading Stocks
Teams begin with a pre-populated portfolio of To make a trade, you must click on the “Trade
$200,000 USD. By engaging in an active trading Stock” tab and then enter your trade information –
simulation, we hope the participants will gain
Transaction type, Number of shares, and the
basic understanding of the role and operation of Ticker symbol. You may then click on the “Send
the financial markets. Your Trade Request” to submit your trade. Once
you send your request, you will be taken to a Stock
Prizes will be awarded to the top 3 teams,
Order Preview Page so that you can all the
based on their average portfolio return on the
information.
last day of the challenge, in the following
amounts $300, $200, and $100. This preview page will show you the number of
shares you are getting ready to buy or sell, the price
General Requirements you will pay, ticker symbol, transaction type, and
You will want to approach the trading with the the estimated amount that this trade will cost you.
objective of understanding the macroeconomic (the If everything on the preview looks correct, you may
big picture) of the industrialization of food click on the Make A Trade button on the bottom
production. However, please remember that the key and your trade will then be submitted and you will
objective of the project is for you to learn about the be taken to a Stock Confirmation Page. If there is
role and operation of the financial markets. anything you may want to change, click on the
Cancel Trade button at the bottom and the trade will
Registration be canceled.
Teams must have their FFA advisor/teacher
complete the registration form. On the Confirmation page you will receive a copy
Teams must have a minimum of 4 student
of your trade and the corresponding confirmation
members, with a maximum of 6.
number that is assigned to that trade.
Teams are comprised of students from the
same chapter or class.
When trading stocks, you must trade in shares or in
Each chapter or class can have multiple teams.
units. You may trade any number of shares that you
Students can only be registered on one team
wish if it is above 1. This means that you may trade
per tournament.
1 share or 337 shares, but you are not able to trade
Suggestion, teams could nominate 1 student to
less than 1 share.
be the active trader for the group, the
remaining members will be investment
All stocks that you wish to trade long must be
advisors.
trading above $10 USD. If you invest in a stock and
When registering teams, you will be asked
the price goes below $10.00 USD, you don’t have
how many teams you wish to register. Having
done so, the system will email you the to sell the stock, you may still hold your position.
usernames and passwords for you to distribute You just cannot purchase any more shares of the
to each team. stock. You are also limited to 300 total trades. If
you use all your trades, then you are done for the
Technical Support: remainder of the simulation. Each buy and sell
help-desk@stocktrak.com counts as a trade. For example, if you buy 100
Hours: 8:00am - 4:30pm shares of a stock and then sell 25 shares of a
(You can expect a reply by next business day.) different stock, that counts as two trades.
Securities Traded: There is also a position limit of $20,000 per
There are several different types of securities that individual security. In other words, you cannot
can be traded including stocks, commodities, and invest more than $20,000 in a single stock, ETF, or
ETFs. All trades happen in real-time. commodity.The Stock Market Type in the company’s name and click on the
The U.S. stock markets are open Monday through “search” button. A one to five-character ticker
Friday from 9:30 am to 4:00 pm ET in the USA. If symbol will be displayed. Record this symbol, as
you make a trade after the market has closed, then each team must input the ticker symbol to make a
your trade will be placed the following business trade.
day (that markets are open) at the opening price.
The stock markets close on all official holiday days Enter the stock’s ticker symbol in the “symbol”
for the 2021 trading year. When the stock markets dialog box and click on the “get quote” button.
are closed, participants may still trade, however, Information such as the last price, today’s high and
their trades will not be posted to their accounts until today’s low prices as well as a 52-week high and
the next business day and you will receive the low will be displayed. Additionally, important
opening price for that next day for all securities financial information such as the Earning per Share
(EPS) and the Price to Earnings Ratio (P/E) are
Transaction Costs listed.
There will be a $10 flat fee percentage commission
calculated on the total cost of the entire transaction The most thorough resource in the challenge web
for all trades, regardless of the number of shares or page is the Research page. Clicking on the
the price traded. This means that if you buy $20 “Research” tab on the top navigation bar.
worth of stock or $10,000, you will still only pay a These sites are categorized into the following nine
$10 fee for each trade. sections: Fundamental Research, Technical
Research, Market Watch, Other Popular Investment
Account Information Sites, Industry-Leading Stocks, Teacher
To obtain daily, detailed information about your Recommended Sites, Quote Tools, Finance 101,
account, just login to your account on the web page and Helpful Newsletters.
and click on “Account Detail” or “Account
Summary.” Each stock considered for investment should be
evaluated by the participant is an excellent resource
Your individual activity and rankings are updated for investigation. Some companies’ annual reports
each business day. You can view your account are available to be mailed to you by selecting “Free
detail and account summary by clicking on the Annual Report” from the “Fundamental Research”
appropriate tabs. heading.
Click on the Ranking tab to see how your account is Trading Rules (Important Please Review)
doing against other teams. At the end of the
simulation period, you do not need to sell all your 1. Teams will begin with a pre-populated
stock holdings. Your final team standings will be portfolio worth $200,000. This portfolio is
based on the last day’s closing prices. roughly invested 70% in stocks and ETFs, 20%
in commodity futures, and 10% in cash. Use
Stock Research this portfolio as a guideline. At the end of the
Researching a Company can easily be done on the simulation, final portfolios must include at least
Quotes and “Research” pages accessed through the 5 commodity futures.
Main Menu located in your home page. 2. Teams must make a minimum of 25 trades.
3. Teams cannot spend more than 10% of their
The Quotes page is an excellent starting point for portfolio value on any one stock.
researching a company. If you are unsure of your
stock’s ticker symbol, click on the “symbol lookup”
icon located next to the “Get quote” button.Stock Market Glossary
Ask Day Trading
The price at which someone who owns a security The practice of buying and selling a security on the
offers to sell it; also known as the asked price. (See same day.
also "Best Ask".)
Delayed Opening
Assets An intentional delay in the start of trading in a stock
Any possessions that has value in an exchange. until a large imbalance in buy and sell orders is
eliminated.
Average Daily Share Volume
The number of shares traded per day, averaged over Distribution Date
a period, usually one year. Date on which the payout of realized capital gains
on securities in the fund portfolio occurred.
Bear Market
A market where the dominating trend is one of Diversification
falling prices. The acquisition of a group of assets in which returns
on the assets are not directly related over time.
Bid Proper investment diversification is intended to
The price a prospective buyer is prepared to pay at a reduce the risk inherent securities. An investor
time for trading a unit of a given security. Please seeking diversification for a securities portfolio
note that the New York Stock Exchange and the would purchase securities of firms that are not
American Stock Exchange do not provide Bid similarly affected by the same variables. For
information on a delayed basis. (See also "Bid".) example, an investor would not want to combine
large investment positions in airlines, trucking and
Bull Market automobile manufacturing because each industry is
A market where the dominating trend is one of significantly affected by oil prices and interest rates.
rising prices.
Dividend
Buying Power Distribution of earnings to shareholders prorated by
The amount of additional securities that a customer the class of security and paid in the form of money,
may purchase using the existing equity in his stock, scrip, or, rarely, company products or
account. property. The amount is decided by the Board of
Directors and is usually paid quarterly. Mutual fund
Change dividends are paid out of income, usually on a
The difference between the last settlement price and quarterly basis from the fund's investments.
the last reported ask, bid, or trade.
Earnings Per Share (EPS)
Common Stock EPS represents the portion of a company's profit
A security holding that affords the possessor to have allocated to each outstanding share of common
ownership in the company which provides benefits stock. Net income (reported or estimated) for a
such as voting rights and dividend sharing. In the period is divided by the total number of shares
event of liquidation, the rights of common outstanding (TSO) during that period; See growth
stockholders come after all other holders, such as rate measures for EPS.
bond, debt and preferred stock.
Ex-dividend
Date of Record A security which will trade without the inclusion of
The date on which a shareholder must officially a pending dividend. Therefore, the seller will be
own shares in order to be entitled to a dividend. receiving the dividend, not the buyer. In the
6newspaper, these securities are usually designated
with an X beside their names. Market Order
A Market Order is an order to buy or sell a stock at
Ex-dividend Date the market's current best displayed price.
The date at which the Ex-Dividend period begins.
Usually two days before the record date. Market Value
The market price; the price at which buyers and
ETF sellers trade similar items in an open marketplace.
An exchange-traded fund is an investment fund The current market price of a security as indicated
traded on stock exchanges, much like stocks. An by the latest trade recorded.
ETF holds assets such as stocks, commodities, or
bonds and generally operates with an arbitrage Market Value of Long Positions
mechanism designed to keep it trading close to its Sum of all shares held long multiplied by the
net asset value, although deviations can current market price for each stock held.
occasionally occur
NASDAQ Composite Index
Index The NASDAQ Composite Index measures all
A select sampling of stocks used to reflect the basic NASDAQ domestic and non-U.S. based common
trends of the market. Indexes are derived from a stocks listed on The NASDAQ Stock Market. The
broader number of stocks than Averages. Index is market-value weighted.
Index Fund This means that each company's security affects the
A mutual fund that tries to mirror the performance Index in proportion to its market value. The market
of a specific index. value, the last sale price multiplied by total shares
outstanding, is calculated throughout the trading
Initial Public offering (IPO) day, and is related to the total value of the Index.
The first issue and sale of stock by a company to the
public.
Net Change
Limit Buy Sell, Stop Order The difference between today's last trade and the
A Limit Order is an order to buy or sell a stock at a previous day's last trade. The difference between
specified price. today's closing Net Asset Value (NAV) and the
previous day's closing Net Asset Value (NAV).
Listed Stock
A stock that is traded on a major exchange. Net Income
Income after all expenses and taxes have been
Long Position deducted and used in calculating a variety of
A long position is when you buy a stock profitability and stock performance measures.
anticipating the price to rise
New York Stock Exchange
Margin The largest and oldest securities exchange in the
The amount of money that a customer must deposit United States.
with a broker to secure a loan from that broker. In
the case of futures, the amount of money that must NYSE Composite Index - NYSE
be deposited to protect the buyer and seller from The NYSE Composite Index - (NYSE) is a market
default. value-weighted index which relates all NYSE
stocks to an aggregate market value as of Dec. 31,
Market Close Date 1965, adjusted for capitalization changes. The base
Date on which the closing Net Asset Value (NAV) value of the index is $50 and point changes are
was last calculated. expressed in dollars and cents.
7Offer Price You should invest in companies you feel confident
The price at which the shares were originally are well run.
offered to the public. Short Interest
The total number of shares of a security that have
Open Order been sold short by customers and securities firms
An order to buy or sell a security that remains in that have not been repurchased to settle short
effect until it is either canceled by the customer or positions in the market.
executed.
Short Selling
Payment Date Short selling is the selling of a security that the
The date on which a dividend or split will be paid to seller does not own, or any sale that is completed by
stockholders by the issuers' paying agents. The the delivery of a security borrowed by the seller.
payable date is the date on which one must own the Short selling is a legitimate trading strategy. Short
shares (at the close of the session) in order to sellers assume the risk that they will be able to buy
receive the split. the stock at a more favorable price than the price at
which they sold short.
Portfolio & Portfolio Value
All the different investments owned by the same Split
individual or organization. The total ending cash The division of the outstanding number of shares
minus loans, plus the market value of long into a higher number of shares. The market price
positions, minus the value of short positions, plus per share drops proportionately. This is generally
interest earned, minus interest charged. done to make a stock with a very high price more
accessible to small investors. Current owners of the
Preferred Stock stock maintain the same equity by receiving the
A stock holding which provides a specific dividend proportionate number of additional shares.
that is paid before any dividends are paid to
common stockholders. In the event of liquidation, Stock Dividend
their rights come before common stockholders, but Payment of a corporate dividend in the form of
after other holders, such as bond and debt. stock rather than cash. The stock dividend may be
additional shares in the company, or it may be
Previous Day's Close shares in a subsidiary being spun off to
The previous trading day's last reported trade. shareholders. Stock dividends are often used to
conserve cash needed to operate the business.
Price/Earnings Ratio Unlike a cash dividend, stock dividends are not
A fraction derived by dividing the market price of a taxed until sold.
company by earnings per share. This is thought to
gage the value of the stock relative to current Stock Index
market conditions. A securities price indicator such as the Nasdaq-100,
Standard & Poor's or Dow Jones series created to
Securities measure the relative value of the market.
For financial markets these are the many types of
financial instruments which are traded in financial Ticker Symbol
markets (except futures contracts). For example, A unique four- or five-letter symbol assigned to a
bonds and shares. A share is simply a part security. If a fifth letter appears, it identifies the
ownership of a company. If, for example, a issue as other than a single issue of common stock
company has issued a million shares, and you own or capital stock.
ten thousand shares in it, then you own one percent
of the company. As a part owner of a company, you Trading Halt
are investing in the management of the company. The temporary suspension of trading in a security,
usually for 30 minutes, while material news from
8the issuer is being disseminated over the news Volatility
wires. A trading halt gives all investors equal The degree of price fluctuation for a given asset,
opportunity to evaluate news and make buy, sell, or rate, or index; usually expressed as a variance or
hold decisions on that basis. standard deviation.
Trading Index Volume
A calculation which takes the number of advancing Volume is the sum of shares that have traded in the
stock and divides it by the number of declining security for which you have requested a quote for
stocks. either the current or most recent trading day on its
primary trading marketplace.
9The Simulation Starting Portfolio
Holding Company/Fund Name Ticker Weight Description
Corteva, Inc. is a major American agricultural chemical and
seed company that was the agricultural unit of DowDuPont
1 Corteva Inc CTVA 3%
prior to being spun off as an independent public company. It is
the biggest pure play agricultural organization in the world.
Cal-Maine Foods, Inc. is a fresh egg producer, established in
1969 and based in Jackson, Mississippi, in the United States. Its
2 Cal-Maine Foods Inc CALM 3% eggs are sold mostly in mid-Atlantic, midwestern,
southeastern, and southwestern states. It accounts for
approximately a quarter of US egg consumption.
ConocoPhillips is an American multinational energy corporation
3 ConocoPhillips COP 3% with its headquarters located in the Energy Corridor district of
Houston, Texas in the United States.
Helmerich & Payne, Inc. is engaged in contract drilling of oil
and gas wells for others. The Company's contract drilling
4 Helmerich & Payne Inc. HP 3% business consists of three segments: U.S. Land, Offshore and
International Land. The Company is also engaged in the
ownership, development and operation of commercial real
estate and the research and development of rotary steerable
technology.
Walmart Inc. is an American multinational retail corporation
that operates a chain of hypermarkets, discount department
5 Walmart WMT 3% stores, and grocery stores, headquartered in Bentonville,
Arkansas. The company was founded by Sam Walton in 1962
and incorporated on October 31, 1969.
Nutrien is a Canadian fertilizer company based in Saskatoon,
Saskatchewan. It is the largest producer of potash and the third
6 Nutrien NTR 3%
largest producer of nitrogen fertilizer in the world. It has 1,500
retail stores and more than 20,000 employees.
CF Industries Holdings, Inc. is a North American manufacturer
and distributor of agricultural fertilizers, based in Deerfield,
7 CF Industries CF 3% Illinois, a suburb of Chicago. It was founded in 1946 as the
Central Farmers Fertilizer Company. For its first 56 years, it was
a federation of regional agricultural supply cooperatives.
The Scotts Miracle-Gro Company is an American multinational
corporation headquartered in Marysville, Ohio, where O.M.
8 Miracle Gro SMG 3% Scott began selling lawn seed in 1868. The company
manufactures and sells consumer lawn, garden and pest
control products.
The Archer-Daniels-Midland Company is an American global
9 Archer Daniels Midland ADM 3% food processing and commodities trading corporation,
headquartered in Chicago, Illinois.
FMC Corporation is an American chemical manufacturing
company headquartered in Philadelphia, Pennsylvania, which
10 FMC Corporation FMC 3%
originated as an insecticide producer and later diversified into
other industries.
10Tyson Foods, Inc. is an American multinational corporation
based in Springdale, Arkansas, that operates in the food
industry. The company is the world's second largest processor
11 Tyson Foods TSN 3%
and marketer of chicken, beef, and pork after JBS S.A. and
annually exports the largest percentage of beef out of the
United States.
CNH Industrial NV through its brands, designs, produces and
sells trucks, commercial vehicles, buses, special vehicles,
12 CNH Industrial NV CNHI:US 3% agricultural and construction equipment, in addition to engines
and transmissions for those vehicles and engines for marine
applications. The company also provides equipment financing
services.
Pilgrim's Pride Corporation is an American, multi-national food
company, currently one of the largest chicken producers in the
13 Pilgrim's Pride Corporation PPC 3% United States and Puerto Rico and the second-largest chicken
producer in Mexico. It exited bankruptcy in December 2009
and relocated its U.S. headquarters to Greeley, Colorado, in
2011.
John Deere is the brand name of Deere & Company, an
American corporation that manufactures agricultural,
14 John Deere DE 3% construction, and forestry machinery, diesel engines,
drivetrains used in heavy equipment, and lawn care
equipment.
Rayonier Inc, headquartered in Wildlight, Florida, is a
timberland real estate investment trust with assets located in
15 Rayonier Inc. RYN 3% some of the most productive softwood timber growing regions
in the United States and New Zealand. Its core business
segments are timber and real estate.
Magellan Midstream Partners, L.P. is a publicly
Magellan Midstream traded partnership that primarily transports, stores, and
16 MMP 3%
Partners L.P. distributes refined petroleum products and crude oil based in
Tulsa, Okla.
Valero Energy Corporation is a Fortune 500 international
manufacturer and marketer of transportation fuels, other
17 Valero Energy Corporation VLO 3%
petrochemical products, and power. It is headquartered in San
Antonio, Texas, United States.
Chevron Corporation is an American multinational energy
corporation. One of the successor companies of Standard Oil, it
18 Chevron Corporation CVX 3%
is headquartered in San Ramon, California, and active in more
than 180 countries.
Barrick Gold Corporation is a mining company that produces
19 Barrick Gold GOLD 3% gold and copper with 16 operating sites in 13 countries. It is
headquartered in Toronto, Ontario, Canada.
The Invesco DB Agriculture (Fund) seeks to track changes,
20 Invesco DB Agriculture Fund DBA 3% whether positive or negative, in the level of the DBIQ
Diversified Agriculture Index.
12Aberdeen Standard Precious Metals Basket Trust is an
Aberdeen Standard Physical
exchange-traded fund incorporated in the USA. The Fund's
21 Precious Metals Basket GLTR 3%
objective is to reflect the performance of the price of gold,
Shares ETF
silver, platinum, and palladium bullion, less the expenses of the
Trust's operations. The Shares are designed for investors who
want a cost-effective and convenient way to invest in precious
metals.
The S&P Oil & Gas Exploration & Production Select Industry
Index (the "Index") represents the oil and gas exploration and
SPDR S&P Oil & Gas
22 XOP 3% production segment of the S&P Total Market Index ("S&P
Exploration & Production ETF
TMI"). The S&P TMI is designed to track the broad U.S. equity
market.
The iPath® Series B Bloomberg Livestock Sub index Total
iPath Series B Returns ETNs (the "ETNs") are designed to provide exposure to
23 Bloomberg Livestock Sub COW 3% the Bloomberg Livestock Sub index Total Returns (the "Index").
index Total Return ETN The ETNs are riskier than ordinary unsecured debt securities
and have no principal protection
An oil futures contract is an agreement to buy or sell a certain
number of barrels set amount of oil at a predetermined price,
24 Crude Oil Future 3% on a predetermined date. ... In North America, the benchmark
for oil futures is West Texas Intermediate (WTI) crude, which
trades on the New York Mercantile Exchange (NYMEX)
Wheat futures are standardized, exchange-traded contracts in
which the contract buyer agrees to take delivery, from the
25 Wheat Future 3%
seller, a specific quantity of wheat (eg. 5000 bushels) at a
predetermined price on a future delivery date.
Live cattle is a type of futures contract that can be used to
hedge and to speculate on fed cattle prices. ... Producers and
26 Live Cattle Future 3% buyers of live cattle can also enter production and marketing
contracts for delivering live cattle in cash or spot markets that
include futures prices as part of a reference price formula.
Soybeans futures are standardized, exchange-traded contracts
in which the contract buyer agrees to take delivery, from the
27 Soybean Future 3%
seller, a specific quantity of soybeans (eg. 5000 bushels) at a
predetermined price on a future delivery date.
A future is simply a deal to trade gold at terms (i.e. amounts
and prices) decided now, but with a settlement day in
28 Gold Future 3% the future. That means you don't have to pay up just yet (at
least not in full) and the seller doesn't need to deliver you
any gold just yet either. It's as easy as that.
Copper futures are standardized, exchange-traded contracts in
which the contract buyer agrees to take delivery from the
29 Copper Future 3%
seller a specific quantity of copper (e.g. 25 tons) at a
predetermined price on a future delivery date.
Milk futures are standardized, exchange-traded contracts in
which the contract buyer agrees to take delivery, from the
30 Milk Future 3%
seller, a specific quantity of milk (e.g. 89 tons) at a
predetermined price on a future delivery date
31 Cash 10% $20,000
13You can also read
