SMGSMG

Stock Market GameStock Market Game

RULESRULES

www.stockmarketgame.orgwww.stockmarketgame.org

SMGSMG

Each team begins Each team begins the simulation with the simulation with $100,000 in cash $100,000 in cash and may borrow and may borrow additional funds.additional funds.

How much you may How much you may borrow is dependent borrow is dependent upon the equity in upon the equity in your account. your account.

SMG RULESSMG RULES

Interest is charged Interest is charged weekly on negative weekly on negative cash balances at an cash balances at an annual rate of annual rate of 7.00%, and credited 7.00%, and credited weekly on positive weekly on positive cash balances at an cash balances at an annual rate of annual rate of 5.00%. 5.00%.

SMG RULESSMG RULES

Interest is calculated Interest is calculated daily, then summed for daily, then summed for the week (Sunday the week (Sunday through Saturday) and through Saturday) and posted on the following posted on the following Tuesday. The daily rate Tuesday. The daily rate is based upon a 365 is based upon a 365 day year. Daily Interest day year. Daily Interest = Cash * Appropriate = Cash * Appropriate Interest Rate(as a Interest Rate(as a decimal) / 365.decimal) / 365.

SMG RULESSMG RULES

You may trade only You may trade only stocks and mutual stocks and mutual funds listed on the funds listed on the American Stock American Stock Exchange, Nasdaq Exchange, Nasdaq Stock Market and Stock Market and the New York Stock the New York Stock Exchange that have Exchange that have traded within the last traded within the last 7 days.7 days.

SMG RULESSMG RULES

All End of Day Game All End of Day Game transactions are priced transactions are priced at market daily closing at market daily closing prices. These prices prices. These prices can be found in the next can be found in the next day's newspaper or by day's newspaper or by using the price quote using the price quote facilities of facilities of SMGSMG. Real . Real Time Game Time Game transactions are priced transactions are priced at the market price at at the market price at the time of entry. the time of entry.

SMG RULESSMG RULES

All buy orders must All buy orders must be a minimum of be a minimum of 100 shares. Sell 100 shares. Sell orders for less than orders for less than 100 shares will be 100 shares will be permitted.permitted.

SMG RULES: Important!SMG RULES: Important!

SMGSMG does not does not permit buying stocks permit buying stocks or mutual funds that or mutual funds that trade below $5 per trade below $5 per share. Such orders share. Such orders will be rejectedwill be rejected

SMG: IMPORTANT!!SMG: IMPORTANT!!

Sell transactions for Sell transactions for existing long existing long positions where positions where transactions are transactions are executed at closing executed at closing or real time prices or real time prices will be accepted, will be accepted, even if the price is even if the price is less than $5.00 per less than $5.00 per share. share.

SMG: IMPORTANT INFO!SMG: IMPORTANT INFO!

A 2% broker's fee is A 2% broker's fee is charged for all charged for all transactions. For transactions. For example, if you buy 100 example, if you buy 100 shares of a stock at $10 shares of a stock at $10 per share, you must pay per share, you must pay the 2% of $1000 or $20. the 2% of $1000 or $20. On Sell or Shortsell On Sell or Shortsell transactions an SEC fee transactions an SEC fee of $41.80 per million of $41.80 per million gross rounded to the gross rounded to the nearest penny is also nearest penny is also charged.charged.

SMG: IMPORTANT!SMG: IMPORTANT!

The Game is run The Game is run Monday through Monday through Friday. Teams may Friday. Teams may trade on any day the trade on any day the participating stock participating stock markets are open. markets are open. Orders may be Orders may be entered 7 days a entered 7 days a week 24 hours a week 24 hours a day.day.

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Trades entered after Trades entered after close of market close of market (4:00 PM ET) will be (4:00 PM ET) will be priced at next day's priced at next day's closing price for the closing price for the End of Day Game End of Day Game and at opening price and at opening price for the Real Time for the Real Time Game. Game.

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Teams do not have to Teams do not have to liquidate their portfolios liquidate their portfolios at the end of The at the end of The Game. Winners will be Game. Winners will be determined on the basis determined on the basis of either equity or the % of either equity or the % return above/below S&P return above/below S&P 500 Growth. (Some 500 Growth. (Some states may use states may use additional criteria to additional criteria to determine winners).determine winners).

SMG: You can borrow! Up to SMG: You can borrow! Up to 100 grand more!100 grand more!

How much you may How much you may borrow is dependent borrow is dependent upon the equity in upon the equity in your account. your account.

Interest is charged Interest is charged weekly on negative weekly on negative cash balances at an cash balances at an annual rate of annual rate of 7.00%7.00%

SMG: You can earn interest on SMG: You can earn interest on cash in your accountcash in your account

credited weekly on credited weekly on positive cash positive cash balances at an balances at an annual rate of annual rate of 5.00%.5.00%.

Note: Penny StocksNote: Penny Stocks

Low priced stocks, Low priced stocks, known as penny known as penny stocks, are very stocks, are very risky and volatile risky and volatile investments. investments.

Accordingly, brokers Accordingly, brokers will not permit their will not permit their customers to trade customers to trade such securities on such securities on margin, just as SMG margin, just as SMG does not. does not.

Penny StocksPenny Stocks

Also, penny stocks Also, penny stocks tend to have very tend to have very shallow markets and shallow markets and their prices move their prices move sharply with large sharply with large orders, unlike SMG orders, unlike SMG where transactions where transactions are executed at are executed at closing or real time closing or real time prices regardless of prices regardless of order size).order size).

Timing and the SMGTiming and the SMG

The Game is run The Game is run Monday through Monday through Friday. Teams may Friday. Teams may trade on any day the trade on any day the participating stock participating stock markets are open. markets are open.

Orders may be Orders may be entered 7 days a entered 7 days a week 24 hours a week 24 hours a day.day.

Timing and the SMGTiming and the SMG

Trades entered after Trades entered after close of market close of market (4:00 PM ET) will be (4:00 PM ET) will be priced at next day's priced at next day's closing price for the closing price for the End of Day Game End of Day Game and at opening price and at opening price for the Real Time for the Real Time Game. Game.