CONTACT: GEORGE MCCRORY
300 Plaza Centre One
Iowa City IA 52242
(319) 384-0012; fax (319) 384-0024
Release: Jan. 24, 2002
Nasdaq Foundation Awards $50,000 Grant To Iowa Electronic Markets
Iowa Electronic Markets (IEM) has received a $50,000 grant from the Nasdaq
Educational Foundation to conduct a conference where faculty and students
can use the IEM to learn about financial markets.
The conference, scheduled from April 12-14 at the
Henry B. Tippie College of Business at the University of Iowa, will be hosted
by the IEM and the UI department of finance. Funding will be available to
30 faculty and 15 students at U.S. colleges serving minorities and other at-risk
This is the first year that the finance department
and the IEM have cooperated on a conference. Professor Jarjisu Sa-Aadu, finance
department chair, said, "The UI finance department is very enthusiastic and
delighted to participate in this conference. We are eager to share our expertise
and exchange ideas with conference participants concerning issues that affect
the most dynamic markets in the world, the U.S. financial markets."
Faculty attendees with IEM experience will show less-experienced
attendees how they can integrate the IEM into classroom instruction. Financial
market industry professionals from Nasdaq, along with finance faculty experts
led by UI Associate Professor Thomas George, will also speak about current
issues in financial markets. In addition to receiving hands-on experience
with the IEM trading platform, students will learn about careers in finance.
Operated by six UI business faculty, the IEM is a
small-scale, real money electronic futures market that operates under the
auspices of the Commodity Futures Trading Commission. It is located at http://www.biz.uiowa.edu/iem
on the Internet. While it is best known for its political markets designed
to predict election outcomes, the IEM also trades in other contracts whose
eventual payoffs are tied to real-world economic and political events. By
participating in the IEM, students prepare to trade in larger volume capital
assignments and IEM trading activities, students develop critical skills in
technology, financial markets, and economics, said Robert Forsythe, senior
associate dean of the Tippie College of Business and IEM co-director. Forsythe
said that research has shown that active,
hands-on learning is particularly beneficial for non-traditional
students and those from underrepresented populations. "The IEM has all of
the elements for productive, active learning. Students can apply concepts
from classes to market decisions, interact with and learn from the market,
and use the market as a gateway for their own explorations in economics, finance
and related fields," he added.
Since 1997, the IEM has had support from the U.S.
Department of Education, National Science Foundation and Nasdaq Stock Market
Educational Foundation to develop economic literacy programs at two- and four-year
teaching institutions where there are significant populations of "students
at-risk." These include institutions with minority students, first generation
college students, rural community college students and non-traditional students.
IEM staff and faculty have worked with faculty from 43 institutions and have
traveled to many of them to conduct training sessions and share information.
According to Forsythe, a centralized conference offers
several advantages by attracting faculty from a broad range of colleges and
universities and enlisting faculty participants who can interact with and
learn from one another. The participants can also focus on the learning objectives
without encountering the distractions that exist at their normal workplaces,
and the conference can offer a broad range of topics from which participants
The Nasdaq Stock Market Educational Foundation, Inc.,
was established in 1994 to advance knowledge of business, economics, and finance.
The Foundation is particularly interested in projects or programs that foster
economic literacy, promote understanding of the capital formation process,
and/or provide an education on how securities markets operate and function.
For more information about the IEM and its educational
programs, call (319) 335-0794.