April 28, 2021Print | PDF
Twelve teams of Wilfrid Laurier University students competed at the fifth annual Prism Resources Trading Competition, a one-day simulated market challenge held virtually on March 10. In two timed cases, one focused on liquidity risk, the other on mergers and acquisitions, students strove to make as much money as possible, while accounting for ever-changing market forces.
Students were divided into teams of two or three and met in private breakout rooms on Zoom to discuss and strategize but used the Rotman Interactive Trader, a program that simulates a market in which students are traders, to buy and sell stocks alazarind accept and reject offers.
The team with the overall highest score – Steven Bui, Godwin Lau and Jet So, all third-year Bachelor of Business Administration (BBA) students – won $200 per person, with $100 going to each person in second place: BBA students Jen Antony (fourth-year), Nikola Micic (second-year) and Kevin Abeyratne (second-year) and fourth-year Economics and Financial Management student Harmeet Dhaliwal.
“Trading competitions typically run over several days,” says Louay Chauki, vice-president of training at Prism Resources. “Because students only get a few minutes per heat, they have to react quickly and accurately. That kind of experience is really valuable for students interested in a career in finance.”
In the first case, students were asked to evaluate the liquidity risks associated with offers to purchase shareholders’ stocks in two companies. Teams received bids throughout the case, which was divided into five 10-minute heats, each representing a calendar year, and made decisions about whether to accept or reject each offer in order to minimize risk and maximize profitability.
In the second case, students tracked a dozen struggling companies, some of which were the target of takeover offers, which students chose to either accept or reject. Students also had to react to events, such as news that a company was beginning a strategic review of its operations, friendly and hostile takeover offers, competing offers and anti-trust reviews. The case was divided into four 20-minute heats, each representing one calendar year.
At the end of the competition, the profits and losses from each team were averaged and the winners announced.
Besides running several competitions each year geared toward students studying finance, accounting and marketing, among other fields, Prism Resources, a student-run business run out of the Lazaridis School of Business and Economics, offers equipment rentals, software training and study spaces to students.
Prism Resources plans to host more events in the coming year, including one in collaboration with BDO Canada in the fall.