Stock Market Game
Economics – Fall 2006
All economics students will participate in the Stock Market Game (SMG) during the fall semester. The SMG is administered locally by the Houston Chronicle and nationally by the Securities Industry Foundation for Economic Education. Students will be graded on the quality and completeness of their group portfolio and not on the overall success of their stock purchases. There are several requirements for the competition which will be explained both in class and through handouts. Students must read all materials carefully and completely.
Required Materials: three ring binder, 8-tab dividers (one each per team)
All teams are required to keep a portfolio in a new or gently used three-ring binder. This binder will contain the teams portfolio which is the basis of their grade for this project. There will be numerous assignments for the students to complete and keep in their binders. Also all materials relevant to the game should be kept in the binder. The Portfolio will count as two test grades in the fourth quarter. The binder will be taken up several times during the competition to make sure teams are staying up to date.
Portfolio Requirements:
Ø Title page, with the following information:
Ø Table of Contents, with the following sections:
1. Summary of Results
a. Chart showing week by week performance
b. Chart for each stock showing weekly performance
c. Weekly account holdings print-outs
d. Weekly account summary print-outs
e. Transaction List
2. Stock Research and Analysis
a. Description of company including relevant company officers
b. Chart/graphs showing one year and 5 year performance
c. Paragraph explaining rationale for purchasing stock – signed by all group members
d. Paragraph for the sale for the sale of the stock – signed by all group members
3. Stock Market Assignments
- To be given throughout the game
4. Report on Economist/password
5. Team Assessment
Rules of the Stock Market Game
1. Each team begins the
simulation with $100,000 in cash and may borrow additional funds. How much you
may borrow is dependent upon the equity in your account. Interest is charged
weekly on negative cash balances at an annual rate of 7.00%, and credited
weekly on positive cash balances at an annual rate of 5.00%.
2. You may trade only those
common stocks listed on the American Stock Exchange, Nasdaq
Stock Market and the New York Stock Exchange. You may not trade preferred stock
(those listed with a "pf" after their name in the stock tables).
3. All transactions are made on
the basis of daily closing prices, which can be found in the next day's
newspaper or by using the price quote facilities of SMG WORLDWIDE.
4. All buy orders must be a
minimum of 100 shares. Sell orders for less than 100 shares will be permitted.
5. SMG WORLDWIDE does not
permit buying stocks that trade below $5 per share. Such orders will be
rejected. Sell transactions for existing long positions will be accepted, even
if the price is less than $5.00 per share.
(There are a number of reasons for this rule. Low priced stocks, known
as penny stocks, are very risky and volatile investments. Accordingly, brokers
will not permit their customers to trade such securities on margin, just as SMG
WORLDWIDE does not. Also, penny stocks tend to have very shallow markets and
their prices move sharply with large orders, unlike SMG WORLDWIDE where
transactions are executed at closing prices regardless of order size).
6. Trades can only be processed
in whole and will be rejected if sufficient buying power does not exist to
execute the entire order.
7. A 2% broker's fee is charged
for all transactions. For example, if you buy 100 shares of a stock at $10 per
share, you must pay the 2% of $1000 or $20.
On Sell or Short-sell transactions an SEC fee of 1/300 of 1% rounded to
the nearest penny is also charged.
8. The Game is run Monday
through Friday. Teams may trade on any day the participating stock markets are
open. Orders may be entered 7 days a week 24 hours a day.
9. Trades entered after close
of market (4:00p.m. E.T.) will be priced at next trading day's closing price.
10. Teams do not have to
liquidate their portfolios at the end of The Game. Winners will be determined on the basis of
the equity in their portfolios at the end of the final transaction day. (Some
states may use an essay contest to determine winners).
SHORT SELL/SHORT COVER RULES
11. All short sell orders must
be for a minimum of 100 shares. Short cover orders for less than 100 shares
will be permitted.
12. SMG WORLDWIDE does not
permit short sells on stocks that trade below $5.00 per share. Such orders will
be rejected. Short cover transactions for existing short positions will be
accepted, even if the price is less than $5.00per share. (See Rule #5 for an
explanation).
13. A record of a team's
portfolio and transactions will be available daily. A team will not receive a
portfolio nor be listed in regional rankings until its initial transaction is
entered successfully. No back posting of trades will be done for trades of
securities not contained within the SMG WORLDWIDE Security Table. Once the
missing security has been added to the Security Table the security can then be
traded. The same rule applies to trades rejected if they are incorrectly
pricing below $5. Once the pricing has
been corrected the stock can then be traded.
14. No back posting of trades
will be done for trades of securities not contained within the SMG WORLDWIDE
Security Table. Once the missing security has been added to the Security Table
the security can then be traded. The same rule applies to trades rejected if
they are incorrectly pricing below $5.
Once the pricing has been corrected the stock can then be traded.
15. Stock and cash dividends and
stock splits are automatically computed into your portfolio. However, you are
required to check them for accuracy.
Promptly notify your Coordinator at their e-mail address of any problems
you encounter.
16. Participants of the end of
day pricing game may delete pending transactions prior to market close.
17. Any violation of the rules
of the SMG may result in the invalidation of a transaction. Repeated violation
of the rules may result in the disqualification of a team.
18. Additional rules have been
developed in some states and, if applicable, have been included in your
Coordinator's Information Page. It is the responsibility of your team to learn
and abide by all rules.
19. You must maintain a total
equity position that is greater than or equal to 30% of the current value of
your current holdings. If you don't you will receive a margin call.
1. SMG advisors must be
responsible adults 18 years of age or older. In no case may they be a
matriculated student in grades K-12.
2. SMG advisors will ensure
that every participant on their team(s) has read and understands the SMG Rules
and the Code of Participation.
3. Teams that do not comply
with the SMG Code of Participation will be removed from the portfolio rankings.
4. The authority to remove a
team from the rankings lies solely with the team's SMG coordinator organization.
5. Each team is responsible for
any opening or closing transactions entered into its portfolio.
6. Teams may not enter
transactions into portfolios other than their own. (Please note that when a team asserts that a
transaction was entered by a non-member of that team, the team will
nevertheless be ranked based on their portfolio's total equity, which will
include the challenged transaction.)
7. Only transactions stored on
the SMG database will be recognized for purposes of evaluating portfolio total
equity.
8. SIFEE will be responsible
for the accuracy of the market data. If a team believes a stock price or other
information is in error, it shall notify its SMG coordinator organization.
9. In the event of an error on
the part of SIFEE and/or coordinator organization(s), their liability to a
participant shall be limited to the refund of registration or other fees paid.
Your Local Rules for the Stock Market Game
1. We will use real-time pricing with
overnight posting. This means that the teams will be given the price for the
stock at the time of the transaction. It will be posted into the account
overnight. Trades cannot be cancelled.
2.
Each student team must buy and/or short sell stocks in 5 different companies by
the end of the 10th week. For Spring 2005 that date is March 25.These stocks
can be sold at any time based on their performance. There will be no $5000
minimum.
3.
Teams may invest no more than 30% of their Buying Power(as listed on the
Account Holdings page) on any one stock. This can also be stated as 30% of
their Total Equity X 2. The SMG system will reject any trades that exceed this
amount.
GENSHEIMER RULES FOR THE SMG
1. Do not use an inappropriate
password.
Your password will be monitored by both your teacher and the SMG
coordinator. Any inappropriate passwords
will result in a seven point reduction in your team’s portfolio grade. The team’s password will be changed by the
teacher.
2. Do not attempt to invest in
inappropriate companies.
Though the SMG allows students to purchase any common stock traded on
the American Stock Exchange, Nasdaq, and
3. Do not attempt to lose all
your money.
The objectives of the SMG are all related to the
proper use of the stock market as a tool to increase one’s assets. Any deliberate attempt to directly contradict
the objectives of this assignment will result in a team portfolio grade of
zero.
4. Team grades will be based upon the quality and completeness of the team portfolio. These portfolios will count as two test scores in the fourth quarter. Each team’s portfolio will be collected twice before the end of the game to be checked that it is up to date. Additional assignments and grades may be associated with the SMG project throughout the semester including the possibility of an individual grade based upon participation and positive contributions to the team effort.
Ø Portfolio’s will be due on Tuesday, December 5, 2006. No late portfolios will be accepted.
Team Members
Printed Name Signature Date
__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Wireless Facilities, Inc. is an independent provider of outsourced services for the wireless communications industry. The Company plans, designs, deploys and manages wireless telecommunications networks. This work involves radio frequency engineering, site development, project management and the installation of radio equipment networks. The Company has also expanded its network management services, which involve day-to-day optimization and maintenance of wireless networks. As part of the Company's strategy, it is technology and vendor independent, which allows it to objectively evaluate and recommend specific products or technologies. The Company provides network design and deployment services to wireless carriers such as Verizon and AT&T affiliates Telecorp PCS and Triton PCS; equipment vendors such as Ericsson and Siemens and wireless data carriers, such as Sprint and XO Communications.
Wireless Facilities, Inc. is an independent provider of
outsourced services for the wireless communications industry, planning,
designing, deploying and managing wireless telecommunications networks. For the
nine months ended
Officers FY2000 Pay
Massih Tayebi, Ph.D., 41
Chairman $223K
Masood Tayebi, Ph.D., 39
CEO, Director $224K
Thomas Munro, 44
Pres $189K
Terry Ashwill, 56
CFO, Exec. VP --
Scott Fox, 44
Pres of Network Management & Operations $225K
Source: Yahoo Finance
Portfolio Weekly Summary
|
Week |
End Date |
Portfolio Value |
Profit/Loss |
% Change |
|
1 |
9/8 |
|
|
|
|
2 |
9/15 |
|
|
|
|
3 |
9/22 |
|
|
|
|
4 |
9/29 |
|
|
|
|
5 |
10/6 |
|
|
|
|
6 |
10/13 |
|
|
|
|
7 |
10/20 |
|
|
|
|
8 |
10/27 |
|
|
|
|
9 |
11/3 |
|
|
|
|
10 |
11/10 |
|
|
|
|
11 |
11/17 |
|
|
|
|
12 |
11/24 |
|
|
|
|
13 |
12/1 |
|
|
|
|
|
|
|
|
|
|
Totals |
|
|
|
|
Stock Market Game
Calendar 2006
|
Sept. 4 Market Closed Labor Day |
5 SMG Trading Begins |
6 |
7 |
8 End of Week 1 |
|
11 Print Reports for Week 1 |
12 Class in the Computer Lab |
13 |
14 |
15 End of Week2 |
|
18 Print Reports for Week 2 |
19 |
20 |
21 |
22 End of Week 2 |
|
25 Print Reports for Week 3 |
26 |
27 |
28 |
29 End of Week 4 |
|
Oct. 2 Print Reports for Week 4 |
3 |
4 |
5 |
6 End of Week 5 |
|
9 Print Reports for Week 5 |
10 |
11 |
12 |
13 End of Week 6 |
|
16 Print Reports for Week 6 |
17 |
18 |
19 |
20 End of Week 7 |
|
23 Print Reports for Week 7 |
24 |
25 |
26 |
27 End of Week 8 |
|
30 Print Reports for Week 8 |
31 |
Nov. 1 |
2 |
3 End of Week 9 |
|
6 Print Reports for Week 9 |
7 |
8 |
9 |
10 End of Week 10 |
|
13 Print Reports for Week 10 |
14 |
15 |
16 |
17 End of Week 11 |
|
20 Print Reports for Week 11 |
21 |
22 |
23 |
24 End of Week 12 |
|
27 Print Reports for Week 12 |
28 |
29 |
30 |
Dec. 1 End of Week 13 |
|
4 Print Reports for Week 13 |
5 Portfolio Due |
6 |
7 |
8 |
|
11 |
12 |
13 |
14 Semester Exams |
15 Semester Exams |
|
18 Semester Exams |
19 Semester Exams |
20 |
21 |
22 |