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The Stock Market Game

The Stock Market Game. Rules. Overview. Minimum of 3 players per team Capital - Each team starts with $100,0000 You may only trade stocks and mutual funds listed on the American Stock Exchange, Nasdaq, and NYSE You may only trade stocks that have been traded for the last 7 days. Interest.

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The Stock Market Game

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  1. The Stock Market Game Rules

  2. Overview • Minimum of 3 players per team • Capital - Each team starts with $100,0000 • You may only trade stocks and mutual funds listed on the American Stock Exchange, Nasdaq, and NYSE • You may only trade stocks that have been traded for the last 7 days

  3. Interest • Interest charged on negative cash balance = 7% • Interest earned on positive cash balance = 2% • Interest is calculated daily, then summed for the week (Saturday – Friday) and posted on the following Tuesday • Daily rate = Cash * Interest Rate (as a decimal)/365

  4. Stock Market Game Rules (cont.) • Orders • All buy orders must be a minimum of 100 shares. • SELL orders for less than 100 will be permitted. • You cannot purchase stock for less than $5.00 per share. • Fees: • A 2% broker's fee is charged for all transactions. • example: you buy 100 shares of stock at $10 per share (total value of $1000; the broker's fee is $20) • Hours of Operation • Game is run Monday – Friday • Stock trades are priced real time if placed during market hours; and at the first trade price the following business morning if placed during non-market hours (after 4:00 et).

  5. Portfolios • Portfolios are not developed until your team has made the first trade. • Stock and Cash Dividends and stock splits are automatically computed into portfolios. • You must maintain a total equity position that is 30% of the current value of your current holdings. If you don't you will receive a margin call (charge of 7%).

  6. Rankings • Team rankings are revised every business night (M-F), based on that day`s closing prices.

  7. Quiz – part 1 • Each team begins with _______ to invest. • True or False. The Stock Market Game pays dividends. • True or False. Trades entered on a Friday at 6:30pm will receive the closing price for Monday. • True or False. Mutual funds have ticker symbols like stocks, but they are 5 letters long and end in an X.

  8. Quiz – part 2 • True or False. All buy orders must be a minimum of 50 shares. • A broker’s fee of ___% is charged for all buy and sell orders. • SMG does not permit buying stocks that trade below $___ per share. • Cash balances (money not yet spent) will be credited at an annual rate of ___%.

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