Rules for F I N 4600 ST O C K -T R A K Project
Stock-Trak, Inc. provides students with an inexpensive, and reasonably realistic market simulation. Using real-time quotes, students may trade various securities in a hypothetical portfolio. Stock-Trak, Inc. maintains accounts, accepts trades, and sends out weekly summary reports. This document summarizes the rules that are specific to Dr. Mayes' FIN 4600 class for the Fall 2010 semester. Students should also consult the Stock-Trak site for their rules. Each student will participate in the Stock-Trak simulation project with their own account. Trading will begin on 13 September 2010 and terminate on 26 November 2010. During this period, students are expected to maintain a diary that summarizes each trade that is made, the reasons that the trade was made (with supporting data), any important news event that affects their portfolio, etc. In addition, each student will create and maintain an Excel spreadsheet to track the value of their portfolio on a daily basis (not each individual security, the overall portfolio value). This information will be used at the end of this project, and will be turned in as part of the report. Note that you will be limited to 100 transactions during the semester. If you the value from Stock-Trak. It will be easier, though, if you try to keep up regularly rather than collecting the data at the end of the semester. Portfolios are initially assigned a value of $500,000 of which 100% is invested in cash. On 15 September all portfolios are expected to have no more than 20% cash. The balance of the portfolio must be invested in stocks, bonds, or mutual funds. Students are not permitted to trade options, futures, or any other "derivative" security (even though Stock-Trak allows these types of trades). You are required to make at least one trade (buy or sell) per week. Note that you will be penalized for trading too frequently and for trading inappropriate securities. For example, daytrading...
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