do you know the rules stock market game answers

do you know the rules stock market game answers

Quick summary: This article explains the "Do You Know the Rules?" quiz and official answer key used in the SIFMA Foundation’s Stock Market Game, reproduces canonical answers, summarizes essential rules for students and teachers, and points editors to authoritative documents. It is written for K–12 educators, student teams, and program coordinators who need a clear, accurate reference to the SMG rules quiz and answers.

Introduction

The phrase "do you know the rules stock market game answers" refers to an official rules quiz and its answer key used in the SIFMA Foundation’s Stock Market Game (SMG). This article presents an educator‑friendly summary of that quiz, authoritative answers drawn from SMG rule documents, and practical guidance for instructors. Readers will learn what the quiz covers, how answers map to specific rules, common quiz items and correct responses, and where to check for regional updates. Use this guide to prepare students, verify quiz answers, and ensure competition compliance.

Note: This guide reproduces canonical answers based on official SMG rule documents and educator resources. Always verify local/regional rule addenda before applying rules to a classroom competition.

Background and purpose of the Stock Market Game

The Stock Market Game (SMG), administered by the SIFMA Foundation, is an educational program that simulates investing in U.S. securities to teach students financial literacy, economics, and responsible investing behavior. The program targets K–12 students and their teachers and is delivered through classroom modules, student workbooks, teacher resources, and regional coordinators.

One core component is the rules quiz often titled "Do You Know the Rules?" The quiz ensures students understand the program’s trading mechanics, portfolio restrictions, and conduct expectations before they trade using simulated accounts. The quiz and official answer key help standardize knowledge across classrooms and regions.

As of 2024-06-01, according to the SIFMA Foundation’s official Stock Market Game documentation, the rules quiz is included in teacher and student materials and is used by many regional coordinators as a prerequisite for participating in contests.

The "Do You Know the Rules?" quiz — scope and format

The quiz typically contains 10–16 multiple‑choice, true/false, or short-answer items focused on rule comprehension rather than advanced investing strategy. Its learning outcomes include confirming that students know:

• The starting virtual cash amount and any borrowing/margin mechanics.
• Which securities are eligible and which are restricted.
• Minimum order sizes and special handling for certain asset classes.
• How trade timing, pricing (real‑time vs end‑of‑day), and order execution work.
• How commissions, fees, dividends, corporate actions, and interest are processed.
• Conduct expectations, penalties, and ranking methodology.

Teachers may administer the quiz using printed worksheets, the SMG Essentials Workbook, or as part of regional onboarding. Official answer keys are published in SMG rule PDFs and educator handouts.

Authoritative sources and documentation

Primary authoritative documents for the quiz and answers include the SIFMA Foundation’s rules quiz and rules handout, the SMG Essentials Workbook, and regional coordinator rule pages. Key documents that educators and editors should consult are the SMG Rules Quiz & Answer Key, the Rules Handout, and the SMG Essentials Workbook. Regionally, some states or coordinators publish supplemental rule summaries or addenda; those must be used when resolving local discrepancies.

Authoritative resources (titles only; verify the latest versions with your region):

• SMG Rules Quiz and Answer Key (official SIFMA Foundation PDF)
• SMG Rules Handout (official rules summary)
• SMG Essentials Workbook (student workbook and teacher guide)
• Regional rule summaries (state or coordinator pages)
• Educator webinars and prep sessions (recorded webinars and training slides)

As of 2024-06-01, these official materials remain the primary references for canonical quiz answers and rule interpretations.

Core SMG rules summarized (high-level)

Below is a concise summary of core rule categories that appear frequently in the "Do You Know the Rules?" quiz and its authoritative answers. Each subsection highlights the rule topic and the typical rule language educators should rely on when verifying answers.

Starting cash, borrowing and margin

• Starting virtual cash is commonly set at $100,000 per team. Some regional variations may change this amount; always check the regional coordinator rules.
• The platform allows limited simulated borrowing (margin) subject to maintenance requirements. Margin usage, interest on negative cash balances, and automatic liquidations are described in the official rules.
• Interest is charged on negative cash balances at a published annual rate; interest may be credited at a lower annual rate on positive cash balances. Reported example rates in recent rule documents include a higher interest charge on negative balances (e.g., 7.00% APR) and a lower interest credit on positive cash (e.g., 0.75% APR); always confirm with the current rules.

Eligible securities and market capitalization limits

• Permitted securities include U.S. exchange‑listed common and preferred equities and mutual funds listed on major exchanges; municipal and corporate bonds may be available in some regions.
• OTC/Pink Sheet securities and low‑market‑cap stocks below the published market capitalization threshold (commonly $25 million) are typically prohibited.
• Stocks must be listed on recognized exchanges (for SMG purposes, generally NYSE and NASDAQ equivalents recognized by the program).

Minimum order sizes and increments

• Minimum share purchase amounts are enforced to prevent tiny fractional trades; common minimums include 10‑share buy orders for equities. Selling existing positions may allow smaller increments.
• Bonds are traded in standard face amount increments (e.g., corporate/municipal bonds $1,000; U.S. Treasuries may have $100 increments), when bonds are part of the regional offering.

Commissions, fees and interest rates

• Per‑trade commissions and regulatory fees may be applied to simulated trades; historical examples include a flat commission per trade (e.g., $5.00), and applicable SEC or regulatory sell charges. These amounts can be updated; verify current commissions in the official rules.
• Interest on cash balances: the SMG rules specify annual interest rates for positive and negative balances, and the method of calculating interest (daily accrual). Confirm the current published rates before quiz answer reproduction.

Trade timing and price determination (Real‑Time vs End‑of‑Day)

• SMG operates in Real‑Time and End‑of‑Day modes depending on the program offering. Real‑Time processes trades at current market prices; End‑of‑Day games price orders using next trading session close prices.
• Orders entered after market close (commonly after 4:00 PM ET) receive the next business day’s opening price in Real‑Time mode or next business day’s closing price in End‑of‑Day mode, depending on the game type.
• Mutual fund orders are typically executed at the fund’s next calculated NAV (Net Asset Value) and may be priced differently from equities.

Limit orders, partial fills and execution policies

• Limit orders are generally processed at the pricing attempt for the time when the order is submitted; the system typically does not hold limit orders beyond the initial attempt.
• Partial fills are handled according to platform policy; in many official SMG platforms, trades are processed in whole shares at the available price at execution attempt with no carryover.
• Illiquid or extremely volatile securities may be rejected or priced using available trade data per the platform’s execution rules.

Dividends, stock splits and corporate actions

• Cash dividends are credited automatically to team cash balances on the payable date. Dividend reinvestment or treatment depends on the platform mechanics.
• Stock splits and reverse splits are applied automatically to positions with the adjusted share counts and prices reflected in team portfolios.
• Bond coupon payments and accrued interest treatment for bond purchases are handled per the bond trading rules when regional bond trading is available.

Short selling and restrictions

• Short selling is permitted in some SMG implementations but strictly controlled: minimum share sizes, shorting restrictions for certain securities, and margin rules apply.
• Short positions affect margin calculations and ranking (short gains/losses are reflected in team equity). Some regions disallow short selling for student safety; check local rules.

Common quiz questions and authoritative answers

This section compiles frequent quiz items and official answers derived from SMG rule documents. The phrasing follows the intent of typical SMG quiz items; for verbatim wording, consult the SMG Rules Quiz & Answer Key in the official documents.

Important: the exact canonical answers below reflect the official SMG rule language as published in the SIFMA Foundation materials and educator PDFs. Regional coordinators may issue addenda that override or clarify these points.

1. Q: What is the standard starting cash amount for a new SMG team? A: $100,000 in simulated cash (subject to regional variations).

2. Q: Are fractional shares allowed for buy orders? A: No. SMG processes whole share trades; fractional shares are not supported for buy orders unless explicitly permitted by a regional rule.

3. Q: Can teams trade OTC Pink Sheet securities? A: No. OTC/Pink Sheet securities are generally prohibited.

4. Q: What minimum market capitalization is required for a stock to be eligible? A: Stocks below the program’s published market capitalization threshold (commonly $25 million) are ineligible; use the published screening rules in the official handout.

5. Q: Does SMG credit dividends to team accounts? A: Yes. Cash dividends are credited on the payable date to the team’s cash balance automatically.

6. Q: How are orders placed after market close priced in End‑of‑Day games? A: Orders placed after market close are executed using the next business day’s closing price for End‑of‑Day games (Real‑Time games use the next available real‑time execution price).

7. Q: Are limit orders held overnight or beyond the initial pricing attempt? A: No. Limit orders are not held beyond the initial pricing attempt; the platform processes the order at the pricing attempt and does not keep outstanding limit orders.

8. Q: Are short sales allowed? A: Short sales may be allowed in some games but are subject to platform and regional restrictions; some regions prohibit shorting for fairness and student safety.

9. Q: What happens if a team’s account goes into a negative cash balance? A: Interest is charged on negative cash balances at the rate published in the rules, and margin maintenance requirements may trigger automatic liquidation of positions to return the account to compliance.

10. Q: Is there a per‑trade commission in SMG? A: Yes. SMG applies a per‑trade commission and applicable regulatory fees as published in the rules; amounts are stated in the official rule documents and may change over time.

(These sample Q&A pairs mirror the content and correct responses commonly published in the SMG Rules Quiz & Answer Key. For exact phrasing and the full canonical answer key, consult the official SMG Rules Quiz document and the SMG Essentials Workbook.)

Penalties, disqualification and ranking rules

SMG rules define conduct expectations and penalties to preserve fairness. Typical actions and consequences include:

• Account ineligibility for ranking when a team fails to execute any valid trades by the ranking cutoff or when their account does not meet initial participation requirements.
• Automatic liquidation of positions to satisfy margin calls or when an account falls below maintenance requirements; these actions may be applied automatically by the platform.
• Disqualification or loss of eligibility for program misconduct, including attempts to circumvent platform rules or misuse of instructor privileges.
• Ranking methods: winners may be determined by total equity or percent return; some competitions compare returns against benchmark indices (e.g., S&P 500) and use percent outperformance as the ranking metric. Regional variations apply.

Always consult the regional coordinator’s official contest rules for tie‑breaker procedures, prize eligibility, and the definition of winners.

Regional variations and local rule addenda

While the SIFMA Foundation establishes a national rule set, state and regional coordinators may adopt addenda that modify eligible securities (such as adding municipal bonds), adjust starting cash, change prize criteria, or alter minimums and commissions. Teachers should always:

• Check the regional rule page before starting a semester or contest.
• Use the regional coordinator’s published addenda when preparing students for local competitions.
• Reconcile any differences between national and regional rules when administering the "Do You Know the Rules?" quiz.

As of 2024-06-01, several regional coordinators maintain their own pages summarizing local rule changes and prize details; always confirm the effective date of those materials before using them in the classroom.

FAQs and educator guidance

Below are practical tips for teachers using the quiz and preparing students:

• Administer the "Do You Know the Rules?" quiz before students place their first trade to ensure baseline rule comprehension.
• Review the SMG Essentials Workbook with students; it contains worked examples and exercises that align with quiz content.
• Use the official answer key to grade quizzes; reproduce canonical answers verbatim when required, and cite the rule document and page number for each answer.
• Emphasize classroom procedures for order entry times, verifying trade confirmations, and how to interpret platform messages regarding rejections or margin notices.
• Hold a pre‑competition briefing to cover regional addenda, ranking criteria, and any changes to timing or trade rules. Document the briefing date and provide written confirmation to students and parents when needed.

Sample answer key (appendix)

This appendix reproduces a canonical sample answer key consistent with the SMG Rules Quiz & Answer Key. Use it as a teaching reference. For verbatim documents and official numbering, consult the SIFMA Foundation’s Rules Quiz PDF.

Sample canonical answers (abridged):

• Starting cash: $100,000.
• Minimum shares per buy order: 10 shares (unless regionally permitted otherwise).
• Eligible exchanges: major U.S. exchanges; OTC/Pink Sheet securities prohibited.
• Market cap minimum: $25 million screening threshold for eligibility.
• Commissions: flat per‑trade commission as published in the rules (see official document for current amount).
• Interest on negative balances: charged at the published APR; interest on positive balances: credited at the published APR (see official rules for current rates).
• Order pricing: End‑of‑Day uses next business day’s close for after‑hours orders; Real‑Time uses the next available execution price.
• Limit orders: not held beyond initial pricing attempt; no standing limit orders are carried across pricing cycles.
• Dividends: credited on payable date to cash balance automatically.
• Short sales: allowed only where explicitly permitted; subject to restrictions and margin rules; some regions prohibit shorting entirely.

Citations: Use the SMG Rules Quiz & Answer Key and the SMG Rules Handout for exact quotation and rule numbering when reproducing answers in curricula or publications.

Legal and copyright notes

SMG instructional materials and the official rules quiz are copyrighted by the SIFMA Foundation and affiliated regional coordinators. Reproduction of the full quiz or answer key in printed or distributed formats should include attribution and, when required by the SIFMA Foundation or regional rules, permission for redistribution. Editors reproducing answer keys must cite the source document and the date/version used.

References and further reading

Primary documents and educator resources to consult (titles and organizations):

• SMG Rules Quiz & Answer Key — SIFMA Foundation (official rules quiz document)
• SMG Rules Handout — SIFMA Foundation (official rules summary)
• SMG Essentials Workbook — SIFMA Foundation (student workbook and teacher guide)
• Regional rule pages and coordinator resources (state coordinators provide local addenda)
• Educator quiz examples and practice materials (third‑party educator PDFs and quizzes based on official rules)

As of 2024-06-01, these documents are the authoritative source for the canonical quiz answers and should be cited when reproducing answers or resolving disputes.

Revision history / notes for editors

• Article last updated: 2024-06-01 (reflects SIFMA Foundation SMG materials published through this date).
• Editors should check the SIFMA Foundation site and regional coordinator pages before each school year or contest season for updated rule versions and new addenda.

Practical checklist for teachers (one‑page cheat sheet)

• Verify regional rules and addenda before the quiz.
• Require completion of the "Do You Know the Rules?" quiz before trading.
• Confirm starting cash and commission rates on the platform dashboard.
• Explain Real‑Time vs End‑of‑Day pricing and after‑hours order treatment to students.
• Remind students that dividends, splits, and corporate actions are processed automatically.
• If bonds are enabled regionally, review bond increments and accrued interest behavior.
• Keep a written record of the version date of the SMG rules used for the class.

Editor and educator reminders

• Do not treat this page as a substitute for the official SMG Rules PDFs; this guide is a summary and teaching aid.
• When reproducing quiz answers for student handouts, cite the exact document and page from which each answer is drawn.
• If a discrepancy arises between this guide and a regional addendum, the regional addendum controls for that region’s contest.

Further assistance

If you would like, I can:

• Produce a printable canonical answer key with question numbers and verbatim answers taken from the current official SMG Rules Quiz PDF (I will cite document titles and the effective date), or
• Generate a one‑page printable cheat sheet summarizing the 10 most common rule answers for classroom distribution.

Which would you prefer?

Note: This article is informational and educational. It does not provide investment advice. For official rule citations and verbatim answer text, consult the SIFMA Foundation SMG official PDFs and regional coordinator pages.