Students are introduced to functional percentage calculations useage
tock Market GameRules Review
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.
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.
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
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.
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.
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).