Beginners rules

1. tock Market Game
Rules 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).