Download or read book Using an In-Class Simulation to Teach Financial Markets written by Sean Hennessey and published by . This book was released on 1998 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Financial markets is an integral component of many finance-oriented courses. This paper describes an in-class simulation that allows students to trade securities in the financial market on a quarterly basis over an assumed five year period. Real economic and company specific data is provided to students prior to the opening of the in-class market. The results of the first trial of the simulation is suggestive of student participants following the behaviour of others, supporting the hypothesis that investors are subject to the quot;herd instinctquot;. The analysis of the realistic information provided appeared, with many participants, to be of secondary importance. The simulation provides a realistic introduction to the operation and practicalities of financial markets and in combination with a lengthy, in-class, quot;debriefingquot; at the conclusion of the simulation, can result in a real and lasting understanding of the valuation process.