The California Council on Economic Education has hosted the Capital Markets Contest since 2003. High school students, who have participated in the Stock Market Simulation, enter the next phase of the competition, which consists of an essay and an oral presentation based on the current status of the U.S. stock market. The Capital Markets Contest is a local competition for high school economics students. Its purpose is to promote interest in economic education, honor high achieving students and showcase outstanding high school economics programs. The Capital Markets Contest combines the excitement of an athletic competition and the pride of academic excellence. In this contest, 10 teams of 4 students use the knowledge they have attained regarding economic indicators and their influence on the financial markets to write a team essay and present their findings to a panel of judges. The top 3 teams are rewarded with cash prizes, trophies, along with a trip to NYC for the top team. The program is composed of 3 sections.
Trading
Students begin 10 weeks of trading by investing $100,000 of hypothetical money in the stocks, bonds, and mutual funds of their choice. The teachers attend a familiarization workshop focusing on the main economic Principles illustrated by the financial markets. Students take a pre-and post-test based on macroeconomics and financial markets. At the end of the ten-week period, the teacher selects one team to participate in the Capital Markets Contest Finals.
Student Essays
In the next part of the competition, each team prepares a written response to a question concerning the performance of the markets and the economy during the trading period. Teams are encouraged to use economic indicators and other information to answer the question. The essays are submitted to a grading panel prior to the finals competition where the essay score is used as part of their total score for the competition.
Oral Presentation
The oral presentation consists of a seven-minute PowerPoint analysis of the essay question with three minutes for questions from the judges. During lunch, the oral presentations are scored and the winning teams are chosen. Trophies are presented to the top 3 teams by the Capital Markets Contest sponsors. The third place winner receives $100 per team member and teacher. The second place winner receives $300 per team member and teacher. The first place winner receives $500 per team member and teacher, as well as a trip to New York City.
Capital Markets Contest Question
- During the 10 weeks that you traded, how did economic events, announcements of economic indicators, and government policy affect the markets? Why did each affect them the way they did?
- How bad is our current economic situation? Put it in perspective. How does it compare to the great depression?
- How did we get in this mess? What caused the problems we are currently experiencing?
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Analyze five different approaches to the problem and make a specific recommendation to the Obama Administration. If your recommendation contains a combination of taxes and government spending, recommend an appropriate percentage of both. Use an analytical economic approach, not a politically biased one.
a. reduce taxes
b. increase government spending
c. monetary policy
d. leave it alone
e. other
All teams will answer question 1 in their essay. The essay must be between 1200 and 1500 words. Teams may include graphs in their essay in an addendum. (There must be no more than 10 graphs.)
For the oral presentation, all teams will answer question 2. In addition, teams will choose between questions 3 and 4 but must let CCEE know one week before the finals. Teams may use no more than 20 slides in their presentation. Prepare five copies of your PowerPoint presentation in handout form for the officials.
