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Ready. Your team begins with a simulated
$100,000 in cash. You can borrow more money, depending
on how much equity you have in your account. Each week,
the unspent cash in your account earns an annual rate
of 5% interest. If you spend more than $100,000, your
account is charged interest at an annual rate of 7%.
Set. You can only trade stocks and
funds listed on the American
Stock Exchange (AMEX), NASDAQ,
and the New
York Stock Exchange (NYSE). You cannot trade preferred
stock, (stocks with a “pf” after the ticker
symbol).
Go. When you buy or sell a stock, the
price is based on real time prices of the market AMEX,
NASDAQ or NYSE
where the stock is traded.
Where’s your Portfolio? Buy first.
To see your portfolio, you must make your first transaction.
The day after your transaction, your team portfolios
and transaction records will be posted. Your team will
also be listed in regional rankings.
Buy! Sell! When you buy stock, you have to buy at least
100 shares. You can sell as many shares as you want.
Money talks. Trades can only be processed
in whole and will be rejected if you don’t have
enough money in your portfolio to execute the entire
order.
For a small fee… A 2% broker
fee is charged on each transaction. For example, if you
buy 100 shares of a stock at $10 per share, you would
pay $1000 for the stock plus the 2% fee of $20. When
you sell or short sell stock, the SEC requires that you
pay a fee of 1/300 of 1%, rounded to the nearest penny,
in addition to the 2% broker’s fee.
Open for business. You may enter your
trades in South Carolina’s Stock Market Game 24
hours a day, seven days a week.
After the bell. Any trade entered after
the markets close at 4 p.m. will be priced at the opening
price on the next trading day.
Selling Short. All short sell orders
must be for a minimum of 100 shares. Because the South
Carolina Stock Market Game doesn’t permit trading
penny stocks (stocks for less than $5 per share) it follows
that short selling of penny stocks isn’t allowed
either. The reason is excessive risk. Anyone buying and
selling penny stocks in large numbers can cause the price
to rise and fall sharply over a short period of time,
putting other people who own them in a very risky situation.
Spread the risk around. Your team should
have at least three different stocks in your portfolio.
The more different stocks your team owns, the more diversified
your portfolio and the less risk in your portfolio should
one of your stocks drop quickly in price.
Check your work. Stock dividends, cash
dividends and stock splits are automatically computed
into your portfolio. Remember, you must still check your
portfolio transaction records for accuracy. Promptly email
South Carolina Stock Market Game Coordinator Jeannette
Barton with any problems you encounter.
If the numbers don’t add up… The
Foundation for Investor Education is responsible for
the accuracy
of market data in the Stock Market Game. If you believe
any information, including stock prices, is inaccurate, email
South Carolina Stock Market Game coordinator Jeannette
Barton.
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It’s
your portfolio. Teams may not enter transactions
into portfolios other than their own. However, if your
team challenges a transaction as entered by a non-member
of your team, the portfolio rankings will still include
the challenged transaction. That’s why it’s
important to keep your password a secret, because once
a trade is done, it’s done.
How
low can you go? Your team must maintain at
least 25% in equity. That’s the amount you use
as collateral on money you’ve borrowed to buy
stock. If you go below that amount, the Stock Market
Game automatically
sells or short covers some of your team’s stock,
enough to pay off your team’s debt to get you
to 25% equity.
The proceeds of any sale or short cover will be used to pay off some of the money
your team borrowed to reduce your amount on margin, or debt. Here’s how
it works: if your team’s holdings don’t increase enough to
meet
the minimum maintenance requirement of 25% equity, or if your team doesn’t
sell any stock within three consecutive weeks, the margin requirement of 25%
equity will automatically be paid by liquidating (selling) enough long and short
positions, beginning with the lowest priced stocks, until the minimum maintenance
requirement is met.
At the Bell… All pending transactions
can be deleted prior to market close.
NEW SC 3x3x3 RULE. Teams must make their first transaction by the end of the third week of the game, purchase at least 3 different stocks, and hold three different stocks for a minimum of three weeks.
No Penny Stocks. Penny stocks are
stocks that trade below $5 per share. Penny stocks
can be bought
and sold in large numbers for much less money than
you would pay for a higher priced stock. Anyone buying
and
selling penny stocks in large numbers can cause the
price to rise and fall sharply over a short period
of time,
which puts other people who own them in a very risky
situation.
Because of this, the South Carolina Stock Market Game
does not permit trading in penny stocks. All trades
in penny stocks will be automatically rejected. However,
if you buy a stock that later drops below $5 per share, you can still sell
it.
It’s up to you. Your team is
responsible for any opening or closing transactions
entered into your portfolio.
To make it official… A transaction
must be recorded on the Stock Market Game database
in order to be factored
into portfolio rankings.
Warning. Any violation of
South Carolina Stock Market Game rules may invalidate a transaction.
Repeated violation of the rules may result in the disquali-fication
of a team.
Teams that do not comply with the South Carolina Stock Market Game rules are subject
to removal from the portfolio rankings.
Authority to remove teams
from portfolio rankings lies solely with the South Carolina Stock
Market Game coordinator.
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