Simulated Trading Environment as a Learning Tool in Corporate Finance

Zoltan Murgulov

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Simulated Trading Environment as a Learning Tool in Corporate Finance

Zoltan Murgulov

Monash University, Australia

Volume 9: 2012 Special Issue, pp. 89-104: ABSTRACT

This research explores the application of an innovative learning approach by using trading simulation tutorials to reinforce the conventional learning styles in a corporate finance subject at postgraduate level. Majority of surveyed students perceive that their learning experience has been significantly enhanced through simulated trading tutorials. The post-trading survey shows students also indicate feeling more confident to self-monitor their learning. Furthermore, the majority of students feel able to recognise ethical issues in relation to trading in securities. This research highlights some potentially negative effects if trading simulations were to be used in isolation without providing students with a solid background in ethics. This issue is even more relevant in the post Global Financial Crisis environment. If carefully designed and implemented, trading simulations have a potential to mitigate some potentially negative effects of the use of technology and be an effective and inclusive teaching tool.