the stock market game rules
in this video we're going to learn the difference between the national and the
local stock market game rules where to find the rules and an overview of the national rules
the stock market game reaches educators and students in all 50 states and internationally
we have two sets of rules national rules and local rules national rules are rules that all
stock market game participants must follow no matter where you are located or what competition
you are participating in we will be going over some key national rules later in the video
local rules are rules that are for your location for example your region or state
and or your competition for example the capitol hill challenge
teachers you can find the national and local rules in the teacher support center
visit www.stockmarketgame.org and log in with your advisor id and password
then click the start here tile scroll to program rules and click national rules you can
then click local rules to read the rules that are for your specific location or competition
you can also download the national rules handout in the teacher support center
and in the description of this video
students you can find the national and local rules in your trading portfolio
you can also visit www.stockmarketgame.org and log in with your team id and password
hover over resources and click rules of the game you can then click local rules
rule number one your portfolio will start with a hundred thousand dollars in cash to invest
if you go over the one hundred thousand dollars you're going into margin meaning
you're borrowing money to invest we're not going to go over margin or short selling in this video
if your teacher or parent guardian is not introducing these concepts to you
you want to keep an eye on how much cash is left in your portfolio to avoid going into margin
rule number two the cash in your portfolio earns interest
rule number three you can only buy stocks listed on the nasdaq and the new york stock exchange
the nasdaq and the new york stock exchange are two marketplaces called exchanges to buy stocks
when searching on yahoo finance or another financial news site you can see what exchange a stock
is trading on in their stock quote rule number five you will be ranked after you successfully
enter your first trade we encourage you to enter trades early on in the competition
the longer your money is invested the longer it has the potential to grow in value
you can view your team's rankings here rule number six you do not need to sell off your investments
before the competition ends you can find the beginning and the end of your competition here
rule number seven you can only buy stocks that trade for three dollars or more
and are from companies that have a market capitalization of 25 million or more
market capitalization or market cap is how much a company is worth you can find the market cap by
multiplying the total number of outstanding shares by the price per share you can see a company's
market cap on their stock quote rule number eight you must buy at least 10 stock shares rule number
nine if your trade type is real time and you enter a stock trade during market hours monday through
friday 9:30 am to 4 pm eastern standard time your stock trade will execute immediately and appear in
transaction notes if your trade type is end of day and you enter a stock trade during market hours
your stock trade will price at the end of the market day 4 pm eastern standard time
it will immediately appear in pending orders until the trade executes you can see your trade
type here rule number 10 if you trade outside of market hours your stock trades will price and be
executed at opening of the next business day they will immediately appear in pending orders
only the transaction notes and pending orders pages update immediately after entering a trade
account summary and account holdings update overnight to reflect your transactions
rule number 13 you will be charged a five dollar fee every time you buy or sell stocks
rule number 16 stock dividends or payments and other corporate actions are automatically updated
in your portfolio however if you see something that doesn't look correct tell your teacher or
parent guardian to contact your stock market game coordinator to make sure your portfolio
is up to date questions to consider recall one rule that we reviewed and explain it
why do you think there's a rule to not trade stocks under three dollars
thank you for watching