Khan Academy Stock Market Simulation

We’re doing a first-ever RISK stock market simulation at KLS and Khan Academy. The point of the RISK is just to have something
that the market can predict. And the big takeaways from this should be
whether or not markets are good at predicting complex phenomena. The whole point of this is to understand how
markets work, how markets are tied to actual reality, how prices and probabilities are
related – prices of securities and probabilities of various events happening. [announcer in background] “CHINA HAS FALLEN.” People are running around. Some people are trying to figure out what’s
gonna happen with the game. Some people could care less what’s happening
with the game, they’re just trading, they just have a general view of what’s a high
or a low stock price. We have families that are breaking up into
teams, just trying to get the best prices at the various stations. It’s already getting pretty animated. I think in the everyday world, when you think
about the stock market, people don’t realize that those are real people dealing. But here you see the people and you see the
excitement, or when people get down on the stock you can see it very viscerally. Now you can see people are starting to get
comfortable, they’re starting to understand how the trade works, they’re starting to understand
the dynamics of the RISK game, so you’re getting a lot more professional trading behavior
going on. Well, I think a lot of students here,
it’s the first time they’ll have experience with a market, this idea of buying and selling
things. Even a lot of the parents have never actually
bought and sold securities like this before and have seen how the price of a security
can connect with some form of reality. Right at the end, team Yellow broke out and
took care of business. And now our first place team, congratulations
to all three of our winning team members. One thing about simulations is you learn something
while you’re in it and then you go home and you think about it and you learn a lot
more. Yeah, it was a lot of fun!

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