Abstract:

This paper tries to close the gap related to a lack of knowledge of how we can effectively promote financial literacy among students by outlining one potential way it can be achieved. The article explains how a student investment team was created by several students of EDEM Business School in Valencia (Spain). “EIT” (EDEM INVESTMENT TEAM) is a student association where their members decided to participate in a national capital markets league organised by a private company. This contest was the perfect excuse and motivation to organise regular meetings to discuss the creation and the subsequent composition of a securities portfolio. The interaction and enthusiasm of the members of the association generates an informal environment where they can learn from applying different investment theses and company valuation methods, as well as displaying and confronting real market behaviours and dynamics.

However, when analysing the creation process of this student association it is necessary to consider at once its spontaneity yet at the same time its nested nature as it is embedded in an encompassing entrepreneurial ecosystem. This ecosystem, called “Marina de Empresas”, is composed by a Business School (EDEM), a start-up incubator (called “Lanzadera”) and an investment vehicle (called “ANGELS”). So, the student association flourished in a fertile soil where students benefit from many tangible and intangible assets. They are exposed to two curriculums, a formal one designed and taught in the university and an informal and optional one where they freely choose contents from the different activities and lectures provided in the entrepreneurial ecosystem. As part of these optional activities one of the most influential is the “Club de Bolsa” a quarterly review of current affairs from a capital markets perspective that has been running for 4 years.

The paper provides a descriptive history of the investment club’s evolution including insights from multiple key actors who were involved in the process. For example, EIT students located in EDEM had the opportunity to receive tailor made classes from top executives in the world of finance, such as, the derivative desk manager of a national Spanish bank or a private bank manager. Therefore, it provides a potential mechanism by which educators and policy makers can stimulate greater levels of financial competence in students.

Keywords:

Investment club, capital markets, financial analysis, teaching methodologies.