Author Topic: Aces High Stock Market Game... (Read 9609 times)

Waffle · « **Reply #465 on:** July 01, 2006, 01:34:04 AM »

I say do another 2 week game - but give us all 100,000,000 (one hundred million dollars) and se who can lose the most....lol

Curval · « **Reply #466 on:** July 01, 2006, 08:31:36 AM »

Quote

Originally posted by Waffle BAS
I say do another 2 week game - but give us all 100,000,000 (one hundred million dollars) and se who can lose the most....lol

lol

Actually, I say make it $10,000 each and set the rules as close to real as they can get. Then make it a 6 month game.

BlueJ1 · « **Reply #467 on:** July 03, 2006, 07:19:16 PM »

Curval · « **Reply #468 on:** July 03, 2006, 07:24:56 PM »

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Originally posted by BlueJ1

hehe

I'm right behind ya man.

BlueJ1 · « **Reply #469 on:** July 03, 2006, 07:26:16 PM »

From last to 1st. Now to do it again.

lasersailor184 · « **Reply #470 on:** July 03, 2006, 07:29:15 PM »

Forgive me, but what is "Short Selling." I never really understood what it was.

Curval · « **Reply #471 on:** July 03, 2006, 07:34:21 PM »

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Originally posted by lasersailor184
Forgive me, but what is "Short Selling." I never really understood what it was.

It is a way to bet on a stock going down rather than up.

Basically you are selling stock that you don't own. Later you "cover" the short order by buying the stock you previously sold.

Example:

I sell short on stock "X" trading at a price of $5.

When (if) the stock goes down you "buy to cover" at the lower price...say $4.50.

By doing so you made 50 cents on each share.

lasersailor184 · « **Reply #472 on:** July 03, 2006, 10:06:44 PM »

How can you sell something you don't have? Who's buying it if you are selling it?

Curval · « **Reply #473 on:** July 04, 2006, 06:19:59 AM »

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Originally posted by lasersailor184
How can you sell something you don't have? Who's buying it if you are selling it?

In this game it is sort of fudged, but in the market a broker "lends" you the stock and they sell it for you in the market. You owe them the same amount of shares after the short sell transaction. If the price goes down you then buy (to cover) the stock at the lower price and settle up with the broker.

DieAz · « **Reply #474 on:** July 04, 2006, 08:54:40 AM »

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Originally posted by Curval
In this game it is sort of fudged, but in the market a broker "lends" you the stock and they sell it for you in the market. You owe them the same amount of shares after the short sell transaction. If the price goes down you then buy (to cover) the stock at the lower price and settle up with the broker.

this got me to thinking, what would happen if you sold a stock short and it splits 2 for 1, the price per share is now 50% of what it was. would you still buy to cover the same amount of shares or ?????

(Edit) basically the question is what happens if a stock splits on the share sold short?

BlueJ1 · « **Reply #475 on:** July 04, 2006, 11:31:59 AM »

Is the market closed today?

lasersailor184 · « **Reply #476 on:** July 04, 2006, 11:47:24 AM »

National holiday BlueJ, so you're just going to have to keep kicking everyone's tulips tomorrow.

Plus yesterday ended early. At 2 or so.

BlueJ1 · « **Reply #477 on:** July 04, 2006, 11:58:51 AM »

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Originally posted by lasersailor184
National holiday BlueJ, so you're just going to have to keep kicking everyone's tulips tomorrow.

Plus yesterday ended early. At 2 or so.

Was just making sure. Because the game still had the countdown.

Curval · « **Reply #478 on:** July 04, 2006, 12:26:19 PM »

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Originally posted by DieAz
this got me to thinking, what would happen if you sold a stock short and it splits 2 for 1, the price per share is now 50% of what it was. would you still buy to cover the same amount of shares or ?????

(Edit) basically the question is what happens if a stock splits on the share sold short?

I don't know the answer to that man...but no doubt there is no way to manipulate the market on something like that. However it works I doubt you can gain some advantage.

DieAz · « **Reply #479 on:** July 04, 2006, 05:29:14 PM »

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Originally posted by Curval
I don't know the answer to that man...but no doubt there is no way to manipulate the market on something like that. However it works I doubt you can gain some advantage.

I finally got around to googling it, the answer is found here The Fool FAQ shorting stocks

basically says if you short 100 shares and it splits 2:1, you now have to buy to cover 200 shares.