Project Approach

Financial competition among teams and universities

– Investment teams formed with minimum of 7 students and a maximum of 8 students

– Each team capitalized with $4,000,000 equity for NYSE and Nadaq

– Trading done in equities only; team operates a portfolio for entire program period;

– Teams work cooperatively to conduct research, develop strategies and make buy/hold/sell decisions to build and manage portfolios

– A Team Leader selected to coordinate activities and liaise with Directors

– Teams focus on specific functions related to markets and processes

·         Market Research — role and function of stock analysts

·         Execution and Trading Processes — role and function of traders

·         Portfolio Management / Asset allocation

– Each Team makes periodic presentations to the Investment Review Committee (IRC)

·         Portfolio performance evaluation

·         Current strategies explained, trades justified, future strategy plans discussed

·         Final assessment by IRC

– Markets: US Stock Exchanges (equities traded must be NYSE / Nasdaq listed)

– Capital: $4,000,000

– Portfolio: Maximum stocks in each portfolio at any point 30

·         Maximum trades per day NYSE and Nasdaq: 10 trades (after 1st trading week)

·         Total trades:  200

– Record: Portfolio created and monitored on Virtual Stock Exchange (Stocktrak) website

– Reports: Hardcopy details of trades from Stocktrak kept

Maintain alternate records for “disaster recovery” (online or offline)

Deal “tickets” for each trade, summarizing analysis, strategy and expectation

– Costs: commission per deal ticket, $5.00 for Stocktrak

– Allocation: Each portfolio must contain an allocated mix of Cash and Equities

·         Minimum 90% equities

·         No single stock > than 20% of portfolio value

·         Cash (maximum balance 10% of the portfolio – except during first week of trading when maximum of 20% permitted) will not earn interest rate

– Pricing: Equity valuation will be at market price as at end of last trading day each period

¨ Teams: Maximum 8 students, minimum 7 students. Team Leader designated by team members

·         Teamwork is critical, and expected to be fostered

·         Obtaining high grade is important, but learning is more important

¨Performance Monitoring and Evaluation:

– Teams will deliver 3 presentations on strategy and performance to the IRC

·         Initial strategy Sunday, Sunday, 20 March  2016

·         Interim after Trading Period I Sunday, Sunday, 10 April  2016

·         Final after Trading Period III Wednesday, Sunday, 1 May 2016

–         IRC will provide feedback on performance and compliance with strategy as part of the learning process

–         Performance will be evaluated based on quantitative criteria, analysis, understanding, risk management, strategy, decision-making, teamwork and presentation skills

–         Evaluator’s form