A stock market run by the University of Iowa shows democratic presidential candidate Howard Dean’s “stock” is slipping. Janet Berg, a University of Iowa accounting professor, helps manage the market which lets investors buy “stock” in a candidate. Berg says investors in the markets are putting their money on the candidate they believe will win the party’s presidential nomination. Dean’s stock price was as high as 76 cents in early December. It’s fallen to 20 cents. Berg says that’s an indication traders in the market now believe there’s only an even chance Dean will get his party’s nomination in August. Berg says the two “stocks” that are rising are those of Massachusetts Senator John Kerry’s and retired General Wesley Clark. Clark’s price has risen to 21 cents; Kerry’s stock price is 14 cents. Berg says that means traders believe there’s a 21 percent chance Clark will be the party nominee and a 14 percent chace Kerry will. Berg says the market is a good indicator because people are spending money on their hunches. Berg says they’ve found the market to be a better indicator of the outcome of the general election than public opinion polls. The market started in 1988 as a teaching tool. Berg says they use it in class to try to get students interested in the way markets work. It’s also used as a research tool to learn how markets function. To find out more on-line, go to www.biz.uiowa.edu/iem.
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