UW-Madison students can now learn about stock-market investments by joining a unique organization on campus.
Eric Josephs, president and founder of the Fantasy Sports and Finance Club, said he started the group in the fall because of the similarities between choosing teams in fantasy-sport drafts and selecting stocks from the market.
FSF, which is affiliated with the Wisconsin School of Business, has two stock-market leagues, one in the spring and one in the fall, and three fantasy-sport leagues. FSF held the first fantasy-baseball draft on campus Feb. 23. Josephs said members can participate in both leagues if they choose.
According to Josephs, who is majoring in finance, stock investors look at characteristics including durability, competition and duration before investing. He said the same is true of fantasy sports.
""You want to look at if [a player] is good in the first half of the season or the last half of the season and if a lot of people have insisted on them,"" he said.
According to Charles Engel, a UW-Madison professor of finance, investments and banking, fantasy-sport drafting and finance share similar motives. Similarities include the diversification of risk through picking different players and stocks. However, Engel said fantasy-sport drafting and finance differ in terms of risk management.
""I think that when people play fantasy sports they are willing to take risks if they can find somebody that is going to have a big payoff,"" Engel said. ""In stocks you are trying to manage risk because you could have a big loss.""
Joe Pigatti, a member of FSF, was the first person to join Josephs in the formation of the club. He said he enjoys both the fantasy-sport and stock-market leagues.
""[The stock-market league] is very helpful … It's about investments, how to manage your money after college,"" he said.
Members are highly involved in the events when they act as owners and buyers in the leagues.
""What really stands out about our club is that everybody is playing an active role, and I think that's huge,"" Josephs said. For more information on the Fantasy Sports and Finance Club, visit www.bus.wisc.edu/students/orgs/detail.asp?id=97.
