ABU DHABI UNIVERSITY STOCK MARKET COMPETITION

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1 ABU DHABI UNIVERSITY STOCK MARKET COMPETITION

2 How Would You Invest AED 100,000? Want To Learn To Invest Confidently? Want To Get Empowered? So, what are you waiting for? Sign up for ADU s Stock Market Competition. 1. Purpose Undergraduate business students, from various universities in the UAE, are invited to participate in the Stock Market Competition, organized by the College of Business Administration (COBA), with the cooperation of Abu Dhabi Stock Exchange (ADX). The goal of the competition is to evaluate each team s performance on the basis of total investment return, investment strategy, investment logic based on research on companies listed on ADX, and the team presentation. Student teams will be competing against each other. The Stock Market Competition is an online contest that will allow students to test their knowledge and skills (mathematical, financial, critical thinking, problem solving, research and communication) against other students from different universities. 2. Eligible Participants 2a. The Stock Market Competition is open to all students in different undergraduate business programs in UAE. Prior to the competition, students need to familiarize themselves with the use of the trading system. A manual describing the functionality of the program will be distributed to each team. 2b. There is a limit of one (1) registration per group in the competition. Thus, there should be only one Trading Account per group. Any group that registers or attempts to register more than one (1) entry in the system will be automatically disqualified. Finally, each student needs to be a part of only one group it is impermissible to be a member of several teams simultaneously. 3. Registration 3a. Entry to the competition is free. 3b. Groups wishing to participate in the contest must submit the online registration form to ADX by April 15-21, (Please see the Stock Market Competition Manual) Use the following password to access the Stock game - Aduc10 4. Trading on the Stock Market Program 4a. The first day of trading is April 22, 2014 and the last day of trading is May 22, b. Groups are solely responsible for all acts and omissions that occur under their username. Any detection of unauthorized use of a Trading Account will be immediately notified to ADX.

3 5. Competition Guidelines 5a. Teams, consisting of 2-5 students, will begin the contest with AED 100,000 in virtual cash. 5b. Only stocks that are part of the ADX nominated list (the 'Listed Companies') may be traded. The stocks are the only class of securities that may be traded. Other classes of securities such as company options cannot be traded. 5c. An order to buy or sell stocks may be placed at any time of the day during the Competition period. Orders will only be matched during the trading hours of the ADX market (10.00 AM PM). 'At Market' and 'At Limit' orders in the program are not matched until they have been matched on the ADX market (i.e. if a participant places an At Market order to buy or sell a number of shares, it will not be executed until there is a match on the ADX market). Orders placed 'At Market' when the ADX market is closed will be processed at the opening trade price on the next trading day. 5d. The short selling is not allowed. 5e. Each team is invited to submit a report outlining their investment strategy, background research on the companies, portfolio management, and investment performance. The reports will be reviewed by a panel of judges. Report Submission Deadline: May 29, f. The top five teams, with the highest returns, will be invited to present their report to a panel of judges, defend their investment decisions and explain their overall strategy. Presentation Deadline: June 12, Format Guidelines for the Report The report submitted by each group should follow these specifications: 6a. Title Page: The first page of the Report should include the following: Stock Market Competition Name of the University Names of the Team Members Date 6b. Table of Content: The table of contents should follow the title page.

4 6c. Body of the Report: The body of the report should include the following: 1. EXECUTIVE SUMMARY: A one-page description of the project. 2. ANALYSIS OF PORTFOLIO PERFORMANCE: A table presenting the purchase price, the current price, a brief summary about each selected company and charts of portfolio performance may be included. 3. RATIONALE: 3.1. Explanation of research conducted prior to the selection of stocks Strategy used to diversify investment portfolio. 4. CONCLUSIONS AND FINDINGS: 4.1. Explanation of strategy effectiveness Proposed changes in strategy for future investments. 5. BIBLIOGRAPHY. 6. APPENDIX (optional): The report should be typed in Calibri font 11, double spaced, with page numbering. The first page of the body is numbered 1 and all following pages are numbered in sequence. Page numbers continue through the bibliography (required) and the appendix (optional). The report is limited to 12 pages (excluding the Appendix). 7. Presentation Guidelines 7a. Each team will have 15 minutes to present their report to a panel of judges. 7b. Each team will spend not more than 10 minutes in setting up the visual aids. Each team member should take part in the presentation. 7c. Judges will spend the remaining 5 minutes on questions and answers. 8. Written Report and Oral Presentation Evaluation Form The following form will be used in evaluating the written report and oral presentation of all groups.

5 Written Report and Oral Presentation Evaluation Form Participants: Traits Realistic knowledge of investment trends and financial markets Diversification of the stock portfolio across Economic sectors Correct use of the investment terminology Research conducted prior to the selection of stocks Effectiveness of the strategy Changes in the strategy for the future investments 7 Spelling and grammar in the written report 8 Organization of the oral presentation 9 Equal participation of all team members in the oral presentation 10 Ability to answer the judges questions Total Score: /40 9. Prizes At ADU s 10th Anniversary celebration, held at the Abu Dhabi campus, the top 3 winning teams will receive monetary awards for their participation in the competition.