Smg basic rules
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Smg basic rules



Beginners rules

Beginners rules



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  • Students are introduced to functional percentage calculations useage

Smg basic rules Presentation Transcript

  • 1. tock Market GameRules Review
  • 2. Portfolio• Each portfolio starts with $100,000 in cash.• Teams may borrow additional funds based on their equity, and will pay 7% APR on those additional funds.• Interest is calculated daily and posted once a week in the portfolio.• Portfolio values are updated each morning to reflect the previous day’s activity.
  • 3. Stocks, Bonds, Mutual Funds• You may only purchase stocks and mutual funds that are listed on the NASDAQ and NYSE.• Teams can’t trade over-the-counter or pink slip stocks as they are difficult to price correctly within the SMG.• Stocks under $5 are not eligible for purchase• All buy orders require a minimum 100 share transaction.
  • 4. End Of Day Transactions• The market opens at 9:30am EST and closes at 4:00pm EST.• All transactions are calculated using the last recorded price of the day.• Trades can be rejected if they exceed the 33% rule or if there is not enough buying power in the portfolio
  • 5. Percentages• There is a 2% brokers fee on each transaction.• When you buy a stock, 2% is added to the closing price of the stock.• When you sell a stock, 2% is deducted from the cash you get back from the closing price.• You may not exceed 33% of your buying power for a purchase of any one stock. Orders will get rejected if this percentage is exceeded.
  • 6. Trades: Long Positions• When you open a stock position with the intention the stock will go up, you are opening a long position by buying shares.• To close a long position, you would sell the shares.• Profits (or losses) are realized when a long position is closed.
  • 7. Trades: Short Positions• When you open a stock position with the intention the stock will go down, you are opening a short position by short selling shares.• When you close a short position you do so by short covering the shares.• Profits (or losses) are realized when a short position is closed (short cover).