What Is Virtual Market Software?
Virtual market software is software that mimics a stock exchange and is also called stock market simulation software. They can be used for fun, for teaching about how the stock market works or to test academic theories regarding stock market activities and results.
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History
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One of the oldest virtual markets is University of Iowa's Iowa Electronic Market, which operates as a real stock market and is used to see reactions to real-world events. This type of virtual market is called a prediction market for its use in making predictions about where the markets will go.
Types
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Virtual market software includes games like stock market simulation games in which players start with a certain amount of money and then try to make more by investing it. Many investment houses and agencies also provide online market simulators to give their clients a better understanding of how the market works. Educational simulation software is used by business students and economists.
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Considerations
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Although virtual markets can be good learning tools and even good market predictors, they do have weaknesses in that they are based on likelihood and not actual investor activities.
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