University of Calgary management students are using a fun exercise in the ups and downs of the stock market to raise money for the Ups and Downs-Calgary Down Syndrome Association.

For the next 10 weeks, the second annual Stock Market Charity Challenge will monitor stock portfolios worth $100,000 in funny money. Approximately 500 people – U of C students and others – each paid $5 in real money to play.

The proceeds will be presented to Calgary Ups and Downs, which assists people with Down Syndrome, at a gala dinner on Nov. 8 at the Westin Hotel.

“It’s a good chance for us to get involved with the community as well as with other students,” said Daniel Cheng, a third-year management student who is one of the event’s organizers.

Last year, the challenge was open only to U of C students; this year, it was extended off campus.

“It’s been a pretty good turnout,” said Cheng, while operating a booth beneath an old stock ticker in Scurfield Hall on the final day of registration.

Cheng said the event has allure because it’s easy to get involved, even for people who don’t know much about the stock market.

Participants have chosen one to five stocks on the Toronto Stock Exchange and/or Canadian Venture Exchange.

Eight third-year and eight fourth-year students will track the shares using software that is linked to a Yahoo.com stock-monitoring Web site.

Weekly standings will be posted on the management students’ Web site known as the Scurfield Squire (www.scurfieldsquire.com).

On April 16, the person whose portfolio has achieved the biggest gain will receive $500 in cash. The second-place finisher earns $300, while third place is worth $150.

“The biggest thing for us is to raise money,” said Derek Wheatley, a third-year student who is managing the challenge’s spreadsheet software.

Wheatley said the organizers also hope the charity challenge will attract future top management students to their Calgary Portfolio Management Trust program.

“That’s a really important thing for us,” said Wheatley. “We love the markets. That’s why we’re here. But we’re hoping to draw people. We really do need the best people each year.”

When they’re not playing with funny money, the 16 challenge organizers oversee a real $200,000 stock portfolio, which was provided about five years ago by the Calgary Society of Financial Analysts (CSFA).

The trust gives students hands-on experience in research, analysis and investment, in addition to their course work.

“Well, with the markets the way they are now, I think (the stocks in the portfolio) are (worth) a little less,” quipped Cheng.

Third-year students like Cheng and Wheatley serve as research associates in specific industry sectors, such as manufacturing and oil and gas, while they prepare to write the Canadian Securities Course.

“We do grunt work!” said Wheatley, with a smile. “We keep up to date in our sector and we make sure every fourth-year student is informed.”

Fourth-year students manage the funds while studying for the Chartered Financial Analyst Level One certificate.

“We manage it on behalf of the CSFA. We have quite a bit of leeway. They trust us a lot,” said Wheatley.

“It’s purely educational. They’re really interested in getting people for their industry. It’s a tremendous opportunity for people who are going to be working for them in the future.”

Students hope that, eventually, some of the trust proceeds will fund a scholarship program.

The CSFA also offers a summer employment program.