American Investor - simulation of investments in stocks and options

American Investor, the former official simulation of the American Stock Exchange, was designed to teach market participants, i.e. investors but also students the basics of fundamental and technical analysis of stocks and the use of options in their investment strategy. It allowed participants to refine their analytical and investment skills in a no-risk environment. To test the knowledge and investment skills of students in transitional countries, graduate students of finance in Croatia and Slovenia tested their investment strategies on the American stock exchange with this simulation during their investment courses in the time period 1995-2005. It was found out that as time proceeded the results of the students were better because parallel with the evolution of the financial markets in their home countries special finance and investment courses were taught at their faculties what enabled them to be better prepared for investments in the secondary stock markets and options markets.