Demo: How Stock Prices Move

Prices within this simulation change based on the supply and demand of the shares (as students buy and sell shares). This is no different than the real stock market. However, the students (investors) in this simulation represent the entire investing population, and this is certainly not the case in the real world. To make this situation more realistic, the instructor of the simulation will act as "the rest of the world's investors". Here is how it works.

1. By evaluating a student's business plan, the instructor will determine some price estimations for each company.*
2. Students will buy and sell shares causing fluctuations to this estimated price. (Buying causes the price to rise; selling causes a drop in price.)
3. Depending on the instructor's preference (as indicated when he/she sets up the simulation), student buy/sell decisions will have a significant/minor effect as prices change.

Now that you understand the premise of the simulation and how prices will move, it is time to learn how the companies in simCEO will be created.