Proposalfin0801 Basics Of Investing In The Stock Market

Proposalfin0801 Basics Of Investingin The Stock Marketsubmitted Tojo

This proposal requests the creation of a 1-credit, 7-week elective course at Temple University's Fox School of Business, titled “FIN0801: Basics of Investing in the Stock Market.” The course aims to teach students fundamental investment concepts, strategies, and practical application through the use of the StockTrak virtual simulation. The course content will cover core topics such as stock market fundamentals, diversification, risk management, and the application of investment principles in a simulated environment. The course is designed to equip students with the necessary skills to understand and navigate the stock market, encouraging early financial literacy and investment competencies.

The necessity of this course is supported by research indicating that early investment education significantly enhances long-term financial outcomes. Millennials who learn to invest early can achieve substantially better returns due to compounding effects over time. Early investment knowledge can also mitigate negative impacts from economic downturns, such as the Great Recession, which adversely affected recent graduates’ earnings. Despite the clear benefits, the Fox School currently lacks a dedicated course focused solely on stock investing; existing courses like FIN0822 include limited investment content and are of higher credit value, making them less accessible for students seeking focused investment education.

The course will include three primary components:

  1. Basics of Stock Investing: Covering fundamental concepts such as stock indices, exchanges, and market trends like bull and bear markets.
  2. Investment Strategies: Teaching diversification, risk assessment, and the identification of suitable stocks based on individual risk tolerances.
  3. StockTrak Simulation: Allowing students to practice investing with a virtual fund of $250,000, applying learned strategies to maximize simulated investment returns.

The course will employ a comprehensive assessment structure including a midterm exam, final exam, evaluation of StockTrak portfolio performance, a reflective paper, and participation grades. The assessments are designed to measure theoretical understanding, practical application, and strategic reflection of investment decisions.

Implementation will follow a detailed schedule involving proposal submission, review, revision, and approval processes from January 2019 through September 2019, with the course planned to commence in the Spring semester of 2020. The estimated annual cost of implementing the course ranges from $0 (if a faculty member with existing workload teaches without additional compensation) to $2,700 (if a new adjunct instructor is hired).

Adding this course is expected to offer multiple benefits, including increasing student interest in finance majors, promoting long-term financial literacy among students, and fostering stronger alumni engagement through improved educational offerings. Furthermore, equipping students with investment skills can help enhance Temple University's reputation and ranking by potentially increasing alumni donations and student success outcomes.

Overall, this course aims to fill a significant educational gap, providing students with essential investment knowledge early in their academic careers to foster better financial decisions and economic resilience in their future lives.

Paper For Above instruction

The integration of financial literacy into undergraduate education has become increasingly vital in recent years, particularly as the significance of investing early to harness the power of compound interest becomes clearer. Recognizing this necessity, the proposal for a dedicated course—“FIN0801: Basics of Investing in the Stock Market”—aims to bridge the existing educational gap at Temple University’s Fox School of Business. This course intends to provide students with foundational investment skills, understanding of market operations, and practical experience through simulation, thereby preparing them for the complexities of the real-world financial environment.

Introduction and Rationale

Investing education at the undergraduate level has historically been limited within university curricula, with most finance courses concentrating on broader financial management or corporate finance topics. However, the growing importance of individual financial planning and investment literacy necessitates a targeted approach to equip students with practical stock market knowledge. Empirical evidence suggests that early investment significantly enhances long-term retirement security and wealth accumulation. For example, studies demonstrate that Millennials who invest minuscule amounts early in life can accumulate substantially more wealth over time compared to those who delay investing (FBB Capital Partners, 2018). Additionally, the repercussions of economic hardships, such as the Great Recession, underscore the importance of financial resilience, which can be cultivated through early, informed investing practices.

Course Objectives and Content

The proposed course is structured around three core modules designed to impart both theoretical understanding and applied skills:

  1. Basics of Stock Investing: This introductory module will cover fundamental topics such as the purpose of stock markets, how stock exchanges operate, index benchmarks, and market cycles like bullish and bearish trends. Understanding these core concepts is crucial for students to grasp the dynamics of investing and market movements (O’Shea, 2017).
  2. Investment Strategies: The second module will focus on diversification, risk assessment, and portfolio management. By exploring different asset classes and investment approaches, students will learn to align their investment choices with personal risk tolerances. This component aims to develop a nuanced understanding of balancing risk and return, which is central to successful investing (Reiss, 2017).
  3. Practical Application via StockTrak Simulation: The capstone component involves engaging students in a virtual investment simulation using StockTrak, where they will manage a portfolio of $250,000. This simulation provides experiential learning, allowing students to apply concepts learned in class to real-world scenarios without financial risk. They will be tasked with devising and adjusting investment strategies to optimize returns, thus bridging the gap between theory and practice (Scott, 2016).

Supporting Evidence and Significance

Research estimates considerable benefits of early investing. The University of Fidelity Viewpoints (2018) reports that investments made in youth can multiply over time, especially when markets recover from downturns. Historical data demonstrates that markets tend to rebalance after economic crises, often providing lucrative long-term growth opportunities; for instance, investors who maintained their holdings through the Great Depression experienced cumulative gains of over 367% within five years (Fidelity Viewpoints, 2018). This reinforces the importance of understanding market trend behavior and the value of disciplined investing.

Furthermore, economic analyses reveal that early financial literacy decreases economic vulnerability, enhances retirement preparedness, and improves overall wealth accumulation for young adults (FBB Capital Partners, 2018). Given the importance of such knowledge, universities play a critical role in promoting financial preparedness, and the proposed course aims to fulfill this educational gap.

Implementation and Methodology

The course will be offered as a short, intensive 7-week module, accommodating student schedules and providing maximum flexibility. Grading will be based on exams (midterm and final), simulation performance, a reflective paper, and participation. The course schedule will involve initial proposal review, revisions, and approval processes, with steps outlined from January 2019 through September 2019. Instruction will be delivered by qualified faculty, preferably an instructor with stock market expertise such as Thorsten Moenig, whose relevant teaching experience reduces implementation costs (Guerra, 2018).

Projected costs vary, with the most economical option being faculty teaching without additional pay, estimated at zero additional cost. Hiring an adjunct or reallocating faculty responsibilities could incur costs between $1,350 and $2,700 per semester. This flexible approach allows Temple University to implement the course with minimal financial burden while maximizing educational impact.

Expected Outcomes and Benefits

The primary benefit of this course lies in empowering students with essential investment knowledge, essential for their personal finance management and long-term financial stability. Practical skills acquired through simulation and coursework will enable students to make informed decisions, potentially leading to better retirement planning and wealth accumulation. Additionally, the course’s engaging format and relevance could attract students to the finance major, fostering greater interest in the field.

Moreover, the enhanced educational offerings may improve Temple’s reputation through increased alumni donations and higher rankings, owing to the demonstrated commitment to student financial literacy (Morse & Mason, 2018). By preparing students to handle financial challenges confidently, the university fosters the development of financially responsible citizens who are better equipped for economic adversities.

Conclusion

The creation of a dedicated, focused course on stock investing addresses a critical educational need, equipping students with practical skills that have tangible long-term benefits. By integrating theoretical instruction with experiential simulation, the course can significantly enhance financial literacy, resilience, and long-term wealth prospects for students. The minimal financial investment required makes this initiative a cost-effective strategy with potential ripple effects, including increased student satisfaction, alumni engagement, and institutional reputation. As the financial landscape continues to evolve, providing students with relevant, applicable investment knowledge is an essential step toward fostering a financially literate and resilient student body.

References

  • Fidelity Viewpoints. (2018). 3 reasons to invest in stocks. Retrieved from https://www.fidelity.com/viewpoints/technology/stock-market-investment
  • FBB Capital Partners. (2018). Message to Millennials: Now Is the Time to Start Investing. Retrieved from https://fbbcpartners.com/messaging/millennials-invest
  • Guerra, T. (2018). The Average Adjunct Pay at Community Colleges. Retrieved from https://communitycollegesuccess.com
  • O’Shea, A. (2017). Investing for beginners: Here's how to get started. Retrieved from https://investopedia.com
  • Reiss, D. (2017). 5 Reasons to Invest in the Stock Market. Retrieved from https://thebalance.com/advantages-of-investing-in-stocks-3576656
  • Scott, J. (2016). Investing for the Future [PDF]. Retrieved from https://temple.edu/finances
  • Morse, R., Brooks, E., & Mason, M. (2018). How U.S. News Calculated the 2019 Best Colleges Rankings. U.S. News & World Report.
  • Temple University. (n.d.). FAQ « The General Education Program. Retrieved from https://temple.edu/gened
  • Dowd, M. (n.d.). How to Write a College Course Proposal. Retrieved from https://davidson.edu
  • Guerra, T. (2018). The Average Adjunct Pay at Community Colleges. Retrieved from https://communitycollegesuccess.com

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