Wharton students play stocks game

It's an ideal investment scenario -- little risk and the potential for a deep tan. Over 70 Wharton students are vying for $25,000 and a trip to the Bahamas by participating in the fourth annual AT&T; Collegiate Investment Challenge, a national contest that gives students a chance to play the stock market. And weekly surveys of the students' portfolios show the students' earnings to be among the highest in the country. Over 20,000 participants from universities and high schools all over the country paid a $49.95 entry fee and received $500,000 to trade, as well as a set of rules, an official stock listing, a transaction ledger, a monthly newsletter and monthly portfolio statements. While students play as individuals, the average account value of Wharton graduate students was recently ranked fourth in the country, while the Wharton undergraduates ranked fifth. Currently, no one from Wharton is ranked in the top 20, but former Finance Club President and Wharton junior Lenny Tannenbaum led the country for the first two weeks of the competition and is now hovering around 120th place. He said he still has a shot at first place. Tannenbaum said that he learned about the AT&T; Challenge a few years ago and figured he would try his luck. "It's a pretty cheap way to learn about the market because if you make a mistake you lose $40 -- not thousands," he said. "People who play the game take risks they wouldn't take in real life, and that's the only way to really learn about the market." Trading for the AT&T; contest began November 1. To trade, participants use a 900 number and may only make 50 transactions during the four-month competition. The top 10 winners from the collegiate division will receive cash awards from $1,000 to $25,000, as well as a five-day trip for two to the Bahamas. A University club offers a similar contest on a smaller scale. The 12th annual Investment Games, offered by Wharton's Undergraduate Finance Club, begin Monday, February 3rd. Participants pay a five or seven dollar entry fee, depending on whether students are members of the Finance Club, and receive $100,000 in fake money to invest in any of the major stock markets. After one month and a maximum of 20 transactions, the student with the most valuable portfoilio wins $200, followed by a $100 second prize, a $50 third prize, and several $10 prizes. Finance Club President and Wharton junior Nelson Tao said the game is an opportunity for students to take risks in investing they probably would not take with their own money. Students make transactions over the phone or through electronic mail. Players may only invest $25,000 in one company, encouraging players to maintain a diverse portfolio. Students can register for the Finance Club's Investment Games through Friday in the mail folder room of Steinberg-Dietrich.

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