Stock-Trak

FALL 2009 INVESTMENT CHALLENGE

Initial balance of fund: $100,000 (up to $200,000 on margin)

Trading period begin date: September 14 (Monday), 2008

Trading period end date: November 20 (Friday), 2008

Restrictions: 100 transactions

STOCK-TRAK is a simulated stock picking game used by the Investment Challenge. You can buy, sell, buy on margin, and sell short all NYSE, AMEX, and NASDAQ common stocks that are trading at $3.00 or more. To make a trade, you must go to www.stocktrak.com, click on "Trading," and you will see icons for a stock-trading pit. If you wish to trade stocks, click on the stock trading pit icon and submit your stock trades on the stock order screen. Before making any trades, you must be prepared with your account number, password, and the ticker symbols of the securities. The cut off time for all trades is 1 p.m. Pacific time. Any trade made after that time will be processed the next business day. STOCK-TRAK also has an All-star Research Page that features links to the top 50 investment sites on the web, including earnings forecast, financial statements, headline news, technical analysis, earnings surprises, upgrades/ downgrades, charts, and much more. Trading rules can be downloaded from http:// www.stocktrak.com/tradingrules.php.

You are required to do the following things:

1. The cost is $23.95 per account. You may play Stock-Trak on your own or you can form a group of up to three people (the cost will be equally shared).

2. Your account number will be given to you by your professor. All account numbers begin with the letter G and are 5 digits long. Also, you must choose a four-digit PIN number. You may register on-line or via mail: www.stocktrak.com/student_college_register.php

3. When registering, use the Primary user's name for your name (e.g., "Joe Smith") and the secondary user's name for your professor's name (e.g., "Dr. XXX").

4. Since you will be restricted to only 100 transactions, you must plan your strategy ahead of time. "Buy and sell" count as two transactions.

5. You are allowed to place limit and stop orders on stocks. Day trading is not allowed and each position limit is 50% of the portfolio value.

6. To be eligible for any cash award, you can only trade stocks and you must have completed more than 20 transactions at the end of the contest and pass the course.

7. Your instructor may ask you to turn in a written report describing your trading activities as well as an evaluation of your portfolio's performance. Your performance will be graded based on your (1) description of the investment philosophy, (2) execution of your investment