Asset Market
click to view
- You start with both money and shares in a company
- Choose a price: click BUY to submit a Bid or SELL to submit an Ask
- You sell a share if:
- you click "SELL AT THE HIGHEST BID" OR
- you have the lowest Ask and someone either clicks "BUY AT THE LOWEST ASK" or Bids more than your Ask.
- You buy a share if:
- you click "BUY AT THE LOWEST ASK" OR
- you have the highest Bid and someone either clicks "SELL AT THE HIGHEST BID" or Asks less than your Bid.
- You can only sell shares you own or buy shares with money you have
- Your transactions will appear on the screen as black dots. The transactions of others will appear as white dots.
- At the end of each round:
- Dividend value determined; each POSSIBLE DIVIDEND is equally likely
- You earn dividend on each share you own
- You earn interest on the cash you have
- Interest rate as indicated
- End of final round: receive REDEMPTION VALUE in cash for each share you own
- Total payoff = end of game cash
- Redemption Value=$2; Interest rate=10%
- Begin final round: $77.40 and 4 share
- Final round: sell 1 share for $2.60; Dividend=$0.40/share
Payoff |
= |
Cash(1+int rate) |
+ |
dividend*shares |
+ |
redemption*shares |
$95.20 |
= |
($77.40+$2.60)(1.1) |
+ |
$0.40*(4-1) |
+ |
$2.00*(4-1) |