Using a Modified Dividend Discount Model for Stock Market Games

This paper presents a dividend discount model (DDM) modified for high-growth stocks as an investment decision tool for participants of stock market games. The participants input data from Value Line Investment Survey reports to the modified DDM for making their investment decisions. Comparing pre- and post-tests of economic and financial literacy on participants conducted during a stock market game period, the authors of this paper find anecdotal evidence that the performance improvement of the experimental group is statistically significant at 0.1 level, confirming the usefulness of the game for improving economic and financial literacy