What is Stock Market Simulation?

Stock Market Simulation

Stock Market Simulation is a handy Java tool that helps you tackle some tough questions about investing. Have you ever wondered what happens to your money if you invest in a stock that can jump up or drop down in value? Let's say you put $100,000 into a stock that might either soar by 60% or dip by 40% each year, and then you tell your heirs not to sell it for 100 years. What could the stock be worth after all that time?

Understanding Expected Value

The expected value of this investment would be around $1,378,000,000. That's right! If there are lots of stocks like this one, the total market value could skyrocket. The formula looks something like this: 100,000 * ((1.6 + 0.6) / 2)^100 = 100,000 * 1.1^100.

The Median and Mode Explained

Now, let's break down the mode and median. Both of these figures come out to about $13,000. This means while you're looking at an average return of about 10% each year, the most common outcome (which we call the mode) shows that many investors might just end up with $13,000.

Investment Outcomes: What to Expect?

This is pretty interesting because more than half of people will likely finish with $13,000 or less after all those years! It's kind of wild how numbers work in investing.

If you're curious and want to explore more about Stock Market Simulation and how it can help you understand investments better, check out this link.

How Download Works

Go to the Softpas website, press the 'Downloads' button, and pick the app you want to download and install—easy and fast!