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| 1. |
Trading Dates and Initial Cash Balance |
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The beginning and ending dates of the trading period, as well as the initial cash balance, are specified by each professor. Please note the Stock-Trak offices will be closed on school and market holidays. |
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| 2. |
Trading Times & Trading Methods |
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Stock-Trak offers several methods for you to place your trades. Before making any trades, you must be prepared with your account number, password, and the ticker symbols of the securities. The cut off time for all trades is 4 p.m. Eastern time. Any trade made after that time will be processed the next business day. Stock-Trak is not responsible for trades that are not received or are incomplete.
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Stock-Trak Website is a comprehensive, functional, and educational site. Visit our home page to make trades on your account, review your account activity, research stocks, obtain price quotes and charts, and to review your class rankingThis is the best way to trade because it is fast, accurate, and convenient. Stock, option and future trades made on the web will be processed at 20 minute delayed prices.
To make a trade on our web page, go to www.stocktrak.com, click on "Make a Trade," and you will see icons for a stock trading pit, a mutual fund trading pit, an option trading pit, etc. If you wish to trade stocks, click on the stock trading pit icon and submit your stock trades on the stock order screen. If you then wish to trade mutual funds, you must then go to the mutual fund trading pit. You cannot trade mutual funds from the stock order screen. |
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Students can also fax their trades in 24 hours a day. All faxed trades must be on a single sheet of paper (no cover pages please), and include your account number, password, name, buy/sell, number of shares, ticker symbols, the date and time sent, and a phone number. All fax trades are executed at closing prices. Please call the next day to confirm. |
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If you have any questions about your account, you may call Stock-Trak customer service during our office hours from Monday to Friday 9:30 am to 6 pm. |
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| 3. |
Tradable Securities |
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The following securities can be traded on our webiste:
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Stocks
You can buy, sell, buy on margin, and sell short all NYSE, AMEX, and NASDAQ stocks (common and preferred) listed in the major financial publications that are trading at $5.00 or more. You can also trade certain foreign stocks trading on exchanges such as London, Paris, Frankfurt, Tokyo, Hong Kong, Taiwan, Sydney, South Korea, and others. These foreign stocks will be quoted in their respective currencies and converted into U.S. Dollars based on the currency exchange rates.
Adjustments will not be made for any cash dividend less than £0.25 or any stock dividend less than 2%. Most small-cap stocks cannot be traded; new issues are available within several days of the initial public offering. |
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| 4. |
Trading Terminology |
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Many people and books use different terminology to describe the same type of transaction. To avoid any communication problems which may occur during the trading process, please refer to the following list of terms that STOCK-TRAK uses to place orders for various types of transactions.
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Stocks
There are four basic ways in which stocks can be traded. They can be bought, sold, sold short, and covered. When "buying" a stock, you are taking a long position with the hope that the price per share will increase. "Selling" a stock refers to the closing of that long position. |
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| 5. |
Quoted Prices and Volume Restrictions |
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Stock, option and futures trades made on the web page will be made at 20 minute delayed prices. All other trades will be made at the "last trade" price of the security for each day. The maximum number of shares each student may trade for any security is limited to one-half of the actual volume of that security on that day. Occasionally prices vary from one quote source to another. Adjustments will not be made because of price discrepancies, unless the price was outside the range quoted in the WSJ.
To force some degree of diversification, students may not put more that 10% of their initial cash balance into any single stock, option, or future. |
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| 6. |
Ticker Symbols |
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When making trades, you must know the ticker symbol of the securities to be traded. Stock ticker symbols can be found in The Wall Street Journal, in Investor's Business Daily, and on our web page. (Most city papers show only the abbreviation of the company name, not the ticker symbol.)
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| 7. |
Commission |
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A brokerage commission is applied to all transactions. The commission for most trades made on the web page is a flat £25. For trades that are not made on the web, the commission for stock trades is calculated as £50 plus £5 per 100 shares; for other trades, the commission is £50 plus £5 per contract. Commissions will be charged to both opening and closing transactions. |
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| 8. |
Margin Requirements |
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The margin requirement for stock purchases is 50%. This means that for stock purchases you can borrow up to 50% of the total cost. Starting with £100,000, Stock-Trak may loan you another £100,000, making your total buying power £200,000 if you are trading marginable securities.
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| 9. |
Interest Earned |
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Interest will be earned on all available cash balances and credited at the close of each day. Interest will be calculated using a money market rate, currently 3%. |
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| 10. |
Interest Charged |
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Interest will be charged on all loan balances and will be debited at the close of each day. The rate will be three percentage points above the money market rate. |
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| 11. |
Calculation of Equity |
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A portfolio's equity or value is calculated as follows:
Cash - Debit bal. + Credit bal. + MV of long positions - MV of short positions
Where Debit = loan balance, Credit = short sales proceeds, and MV = current market value. |
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| 12. |
Disputes & Errors |
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Given the nature of stock price quoting services, prices may vary among sources at any given time. If current prices are not available for any reason, transactions may be posted at the latest pricing date available. When you make a trade on the web page, you will receive a cofirmation. You must keep copies of your confirmations. If you believe an error has been made on your account, please call during our office hours.
Don't call without the confirmation number of the trade in question. The management of Stock-Trak has the ultimate authority to settle disputes. |
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| 13. |
Portfolio Statements |
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Student account statements will be sent to the professor every one or two weeks according to the request of the professor. Account activity can also be reviewed at www.stocktrak.com. Professor summary reports, which show class rankings, will be distributed each week to the professor. It is important to keep copies of the statements received since they cannot be reprinted. |
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| 14. |
Number of Transactions |
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The number of transactions is determined by your professor. Most accounts are limited to 200 transactions. Each buy counts as a transaction and each sell counts as another transaction. For example, if you buy a stock and sell another stock, you will be charged with 2 transactions. |
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| 15. |
Miscellaneous |
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On the last day of the trading period, portfolio liquidation is not required; portfolios will be valued at closing prices for that day. |
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Trading may be temporarily halted during severe weather conditions or other unforeseen events. |
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Trading may be halted on a particular security if significant news comes out after the market has closed. |
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These rules are subject to modifications without notice. |
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You should understand that Stock-Trak's Portfolio Simulations are intended to be as representative of actual portfolio management as possible; however, some requirements and transactions have been simplified. |
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With the use of your specified account number, you acknowledge reading, understanding, and accepting the terms of the Stock-Trak Portfolio Simulation as described herein. You also agree that Stock-Trak, its management, and its employees will not be held liable for damages of any kind that result from the use of the account. |
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