STUDENTS GET REAL-WORLD EXPERIENCE IN FINANCE
CHICO » There may not be a stock exchange floor with a bunch of people screaming, but Chico State finance students are getting a glimpse into the real world of stocks and investments in the new FinTech lab at Glenn Hall.
The lab, which opened in late March, is full of Bloomberg computers which students can log on to view stock and investment information. Twenty-five thousand dollars was donated from various donors to get the students rolling. Alumni and companies donated money to have the students make buy and sell decisions in the stock market, according to Jaycob Arbogast, director of the Center for Excellence in Finance.
Perched on top of a wall in the lab is the Rise Display, which is a scrolling ticker display. It shows the Dow Jones Industrial Average and scrolls all day with live price updates.
The Student Managed Investment Fund is the group that runs the investment portfolio. There are about 30 members of the group. Any student can join the group at the start of a semester. Not every university has a student managed investment fund, but some of the Ivy League schools do and some other California State Universities, according to Arbogast.
“We are just starting up and are still recruiting students to join the student investment fund. Early interest is strong. Several California State Universities have a (Student Managed Investment Fund). We give students a pile of real money to manage and invest. They get real world experience managing a portfolio,” said Terence Lau, dean of the Chico State College of Business.
The students do lots of research. They look at pharmaceutical and energy companies, for example, and make recommendations about what to invest in.
“The students do really well. They are methodical and careful with money,” Lau said. “They drill down into what companies make attractive for buying and selling. It was a combination of funds to get to where they are. A couple of California State Universities have a Bloomberg terminal, including California State University Long Beach and California State University Fullerton.”
“It’s unusual for a CSU to have this. It’s more common for private schools. It’s pretty expensive and costs money to run the software, so you don’t usually see it at a CSU,” Lau said.
The lab had been in the works for the past five years, according to Lau. “We knew it’s something we needed for our finance program. We were planning to launch it in 2020 but everything was delayed because of COVID-19,” Lau said. “However, everything worked out really well this spring.”
The students are very hands-on with the computers.
“We have a big focus on exponential learning,” Lau said. “You learn the business by doing business. We teach students about portfolio management and the market and the value of companies. Students take it extremely seriously.”
“The north state is often overlooked. There’s a big focus on agriculture here. There are financial firms in the north state and we bring systems together, even in rural California. Most students stay in Northern California. They go on to work in financial firms. Some go to the Bay Area and they get credentials and certifications to become finance professionals,” Lau said.
Arbogast also teaches a Finance 351 class.
“The students do really well. They are methodical and careful with money. They drill down into what companies make attractive for buying and selling. It was a combination of funds to get to where they are . ... It’s unusual for a CSU to have this.”
— Terence Lau, dean of the Chico State College of Business
“It’s beneficial to students. The students had a launch party, The software was installed, with Bloomberg monitors and fancier keyboards. It’s navigating smoother and faster,” said Arbogast.
Josef Rau, a business student graduating in May, knew he wanted to enter the finance world. It took Rau a couple of weeks to learn the new system. Rau visits the lab every day after class. He is also a member of the Chico State Investors Club. Finance was always his first choice when he started college.
The lab is open from 7 a.m. to around 10 p.m. when the building closes. All students are welcome to visit the lab, even if they are not business or finance students. The Investors Club students gather in the lab together to talk about investments. They get together every Tuesday and collaborate.
Both of Rau’s parents worked in finance, so he has a background in it.
“We justify decisions and make decisions based on what we’re learning,” Rau said. “We use the information for our portfolios.”
MoneyGuide Pro is a separate program that’s not affiliated with Bloomberg Terminal. The MoneyGuide software is for financial planning students to learn about providing financial planning services. The Financial Wellness Clinic students use that software for practicing creating financial plans, according to Arbogast.