Business students at the University have the opportunity to invest $50,000 in the stock market using real money and market conditions. The University is one of 19 schools participating this year in D.A. Davidson & Co.’s Student Investment Program, a competition that gives students practical experience in investment. The company is a full-service investment firm.
“Individuals choose stocks that we think will do well,” said senior Joseph Alcock, an accounting major who is a member of the group. “From there, we do research to see how well these picks will perform, and then we do a group vote. We pick up large companies like Walgreens and Wal-Mart so the market will replicate under similar real-life market conditions.”
The Student Investment Program currently has 14 members and expects 10 more to compete this year, Alcock said. Students join the group by submitting a resume.
Because this program creates real conditions, students must worry about the high stakes of using money during the course of the school year. Students pay execution costs on trades and earn interest on cash and dividends on securities, Alcock said.
The group gets to keep half its earnings if the total of the investment return is above five percent, or $2500; the rest is kept in D.A. Davidson & Co.’s portfolio. However, a university’s losses are incurred by D.A. Davidson & Co. Earnings are used for the club’s educational trips and other expenses, Alcock said.

In 2003, University students had an 11.77-percent return, which equaled $1,742. Though the group had losses during 2001 and 2002, the program overall has brought returns for the group, which earned $10,120.79 from D.A. Davidson & Co. in the last five years.
Cindy Burg, senior vice president and financial consultant for D.A. Davidson & Co., said the program provides a good learning opportunity.
“Everything from their portfolio to a student’s presentation to the rest of the team to show their convictions for choosing a certain stock helps them understand how stock brokers perform in the real-life market,” Burg said.
This year, D.A. Davidson & Co. will give close to $1 million total to participating colleges. According to a company press release, the universities that participate in this program are located in the Northwest.
The program began in 1985, and the University joined 14 years later. In its first year, the investors had an 18.81-percent return, earning the school $3,452.
Alcock said the program has been beneficial and helped him learn investment tools.
“This program helps with preparation and professionalism for investing,” he said.
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