Contact: Maridith Geuder
A group of Mississippi State University students is earning more than just academic credit in its study of investment management.
Soon with $100,000 to put where their market decisions lead them, they'll find success or failure measured both in real dollars and class grades.
The six students, members of the College of Business and Industry's Financial Management Association, are among three groups in the state and 19 in the South taking part in the Tennessee Valley Authority Investment Challenge. The University of Mississippi and Mississippi University for Women also are participating.
TVA is making about $2 million available to public universities in its service area. The program is funded with a portion of money set aside to retire six TVA nuclear plants.
The investment program is designed to help train the next generation of financial leaders. Each university must develop its own program under TVA guidelines for managing the portfolio.
"To understand fully the principles that we teach in the classroom, they'll have money to invest," said project adviser Wayne Kelly. "There's no substitute for this kind of hands-on learning."
The MSU fund management panel includes senior Hank Daman of Washington, D.C.; sophomore Kelly C. Kusnierz of Brookfield, Ill.; junior Warren P. Ladner of Gulfport; junior Charlie Moody of Louisville; senior Greg J. Norwood of Hernando; and freshman Tommy Schuman of New Albany.
"Any student in the Financial Management Association can make a proposal to the panel," said Kelly, an associate professor of finance. "The panel then will decide on an appropriate response, depending on whether the proposal fits the investment guidelines."
Guidelines for managing the funds will ensure that students follow sound investment practices, such as diversification of investments. The three top performing universities will receive cash awards.