Objectives

Have a bit of fun!

Stimulate discussion of possible purchases for the club.

Duration

The game will run for 6 months.

Starting Capital

Each player will receive £100,000 of virtual starting capital.

Goal

To turn your £100,000 into a larger sum by investing in shares of companies quoted on the London Stock Exchange.

How

By investing £20,000 in the shares of five different companies.

Eligible Shares

The ordinary shares of any company listed on the London Stock Exchange or AIM.

Shares that are suspended may not be traded.

Buy / Sell Requests

At each monthly club meeting, each player will have the right to make as many purchase orders as are necessary to 'fill' their portfolios with 5 different companies.

Once a player's portfolio is full, that player will have the right to carry out one sale and one purchase transaction at each subsequent monthly meeting.

The sale and purchase orders must be entered simultaneously. Funds from the sale will be automatically reinvested in the purchase.

A sale cannot be made until shares in five different companies have been acquired.

Buy/Sell Requests must be submitted at or prior to the club meeting in order to be actioned.

Players are encouraged to give a reason for their decisions – remember that one of the objectives is to help the club find shares!

Cash

Any cash remaining in a portfolio will be treated as getting a 0% return.

Executions

Buy and Sell transactions will take place using the closing prices as of the day of the club meeting.

In exceptional circumstances, the competition organiser may allow one or more players to submit buy/sell requests after the club meeting. In such cases the price at which the trade(s) will be actioned will be:

- for buys, the higher of the two prices at the date at which the request is submitted and that at the date of the club meeting;

- for sales, the lower of the two prices at the date at which the request is submitted and that at the date of the club meeting.

Spread / Commission

For the purposes of the game, the bid offer spread and commission on trades will be considered to be zero.

Dividends

Dividends on holdings will be added to the portfolio value if claimed by the player.

Valuation

Portfolios will be valued prior to each club meeting using the closing prices as of the Friday before the meeting.

If a share is suspended, then it will be valued at the last price prior to the suspension.

Prize Money

A “monthly” prize of £5 will be awarded to the player whose portfolio shows the largest percentage gain since the previous meeting.

A grand prize of £50 will be awarded to the player whose portfolio has attained the largest value at the end of the game.

In the event of ties, the prize will be divided equally between those players that are tied.

A player will not be entitled to a prize unless his portfolio contains at least one investment other than cash.

The Pot Llama (which is what it’s all about!!!!)

The winner of the grand prize will be awarded the pot llama and earns the right to keep it for 6 months.

History

Dave G	20/09/01	Initial issue
Richard W	21/04/02	Updates for suspended shares, delayed buy/sell requests, ties