Stock Market Wizard Investment Contest
(rules subject to changes upon feedback)
The aim of the contest is to prove that ingame semi-passive investing can generate profits, and how big they can be. Other objectives are fun, and activation of the ingame stock market liquidity.
The investment account size is 200 mil, so that anyone can participate. The participant funds the investment account (ingame corp) with 200 mil himself in the beginning.
The contest will end at the end of 1660 (20 years max). At the close of the year, the account is evaluated at bid prices of the assets.
Participation fee is 10 mil. It is possible to participate with at max 3 accounts at a time. An account can be abandoned by sweeping its contents to the owner. New accounts can be created until end of 1650, no later.
Only products eligible to be bought are securities. Therefore, no items with level >0 will be eligible. The list of eligible securities does not include all K0 items though, the companies will need to have a CEO and mission statement, with a report of "things that must be considered before investing". This is to prevent insider info being the deciding determinant of success. Also the security must be widely owned (can be checked by OWNS item_id).
The competition is long-term because it is not intended to be foremost a daytrading contest, but rather a semi-passive pick-the-winner contest. Buying and selling of shares is restricted by the following rules:
- All trades must be done on the marketplace;
- Even via the market, a person must not buy from or sell into an order that he has placed (no matter via which character or a proxy) until 24 hours have passed from the placing of the order;
- One person (through all his investment accounts) must not control more than 10% of the marketcap of a security;
- Transfers to the account and from it, in the middle of the competition, are forbidden (excluding the lawful sweep, terminating the account).
The results are according to the value of the account in the end, in M. Assets are at their bid prices. Blatant price manipulation in the last year will be detected (price jumping/crashing from the last few years' average with no reason), and the price adjusted according to GM decision. Disqualification happens if violation was purposeful.
- 35% of the total is divided equally among the best half of the participants.
- 25% of the total is divided to the best 25% of the participants
- 10% of the total is divided to the best 10% of the participants
- 15% goes to the winner
- 8% goes to the 2nd place
- 4% goes to the 3rd place
- 2% goes to the 4th place
- 1% goes to the 5th place
The "% of participants" is always rounded up and money to the nearest m. All is cumulative.
For instance, if 6 accounts sign up, the prize pot is 260 mil (200 + 6*10).
1st gets 35%/3 + 25%/2 + 10% + 15% = 140.8 mil
2nd gets 35%/3 + 25%/2 + 8% = 83.6 mil
3rd gets 35%/3 + 4% = 40.7 mil
4th gets 2% = 5.2 mil
5th gets 1% = 2.6 mil
6th gets 0%
When the number of players is larger, the numbers get more even.
The prizes can also be given according to a continuous formula, achieving the same distribution but without gaps and undue difficulty in calculation:
#shares = 1 / (1 + place) - 1 / (2 * number_of_finishing_participants)
Prize = #shares / shares_total * prize_pot
With 50 participants, all finishing, this will give 113 to winner and at least money back to 34% of participants
With 25 participants, all finishing, this will give 91 to winner and at least money back to 48% of participants
With 10 participants, all finishing, this will give 87 to winner and at least money back to 90% of participants