AP volume= 352 average price: 20 maximum: 45 minimum: 1 CC volume= 486 average price: 75 maximum: 1000 minimum: 1 CR volume= 185 average price: 38 maximum: 100 minimum: 20 IC volume= 710 average price: 49 maximum: 120 minimum: 10

- AP: apple pie
- CC: chocolate chip cookies
- CR: cinnamon rolls
- IC: ice cream

There are 950 shares of each stock; each person starts with $15,000 worth of cash at the initial auction.

After the initial auction you will be able to trade your shares of stock with other members of the class, at whatever price is mutually agreeable. We will have stock trading in class on Wednesday, November 1. There will also be another day of in-class trading to be announced later.

The final value of the shares of stock will be determined after the vote:

Final payoff for stocks:

- 1st place: pays $100 plus percent of vote per share
- 2nd place: pays $60 plus percent of vote per share
- 3rd place: pays $40 plus percent of vote per share
- 4th place: pays $20 plus percent of vote per share

- suppose stock A is 1st with 30% of vote; it will be worth $130
- suppose stock B is 3rd with 25% of vote; it will be worth $65
- suppose you have $12,000 cash, 30 shares A, 10 shares B
- total value: 12,000+30*130+10*65=
- total value: 12,000+3,900+650 =16,550

- 1st prize: win choice of 3 SPU items
- top 5 people win $5

You can earn stock market extra credit points as follows:

- 8 points for finishing in the top quarter of the class
- 6 points for finishing in the top half (but not the top quarter)
- 8 points for trading with at least 24 other people
- 7 points for trading with 23 other people
- 6 points for trading with 22 other people
- 5 points for trading with 21 other people
- 4 points for trading with 20 other people
- 3 points for trading with 19 other people
- 2 points for trading with 18 other people
- 1 point for trading with 17 other people

Hint: in order to succeed at this simulation, it helps to be good at predicting which of the four treats the people in the class will vote for, since that is what determines the final value of the shares of stock.

Think about which stocks you would like to bid on in the initial auction. You can bid on one stock, or on all four, or two or three; however, the rule is that the total dollar value of your bid must be less than or equal to $15,000. If you bid a higher price, you are more likely to receive that stock; but the higher a price you bid, the smaller is the quantity you can bid for.

Once the in-class trading
starts, it is always to your advantage to buy
a share of stock if you can buy it at a price
that you think will be less than the final
value of that stock. It is to your advantage
to sell a share of stock if you can sell
it at a price you think is higher than
what the final value of that stock will be.

If you do overdraw your account and end up with a final balance for a stock is negative, then your portfolio value is charged $300 per share for each negative share (for example, if a portfolio contains -3 shares of a stock, $900 is subtracted from the portfolio value). If the final balance of cash is negative, then your portfolio is charged $5 for each negative dollar (for example, if a portfolio contains -20 dollars of cash, then $100 is subtracted from the portfolio value). If you finish with a negative total portfolio value your course grade will be lowered by at least one grade.

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