Q:
What is an "IPO"?
A:
IPO is an acronym for Initial Public Offering. When a privately
owned company first begins to sell its Stock shares to the public ("Going Public"),
it is called an IPO. Q: Are
IPOs risky investments?
A: Yes.
IPOs are very risky investments; consequently, the potential gain or loss is very
high. The reason for this is when a company is new to the marketplace, investors
are uncertain of the true value of the company and its future prospects. In the
real world and in this game, you may become very wealthy or bankrupt trading IPOs. Q:
Do I have to Trade an IPO when I land on the IPO space?
A:
No. Trading IPOs is optional. Q:
Are Stock Certificates used in the game when Trading IPOs?
A:
No. As far as you are concerned you are "Trading a Hot IPO". The identity and
business sector of the IPO is of no consequence in the game. Q:
If I decide to Trade an IPO do I have to Buy and Sell the IPO right away?
A:
Yes. IPOs are "Too Hot" to hold on to! You must sell it immediately after you
buy it. Q: How many shares
of an IPO can I Trade?
A: The maximum
number of shares you are permitted to trade is 1,000. For instance, you may Trade
100, 200, 300, and so on. However, you must make sure you can sustain the maximum
potential loss, which is 11 times the number of shares you select; otherwise you
may find yourself Bankrupt and out of the game. Q:
What happens when I land on the IPO space?
A:
Step 1: Select number of Shares [1,000 is the Maximum]. Step 2: Roll Die to BUY
the Shares. Step 3: Roll Die again to SELL the Shares. Step 4: Subtract Lower
Price from Higher Price [Difference]. Step 5: Multiply Difference by number of
Shares you selected. If SELL price is Higher than BUY price then you make money.
Collect the amount in Step 5 from the Bank [Profit]. If SELL price is Lower than
BUY price then you lose money. Pay the amount in Step 5 to the Bank [Loss]. If
SELL price is Equal to BUY price then you Break Even. Q:
What's an example of a player landing on the IPO space and Making Money?
A:
Suppose Lamie lands on the IPO space and decides to trade. He selects the maximum
number of shares [1,000]. He rolls a 5 to BUY the shares and an 8 to SELL them.
The difference is 3 [8 - 5]. Lamie makes a Profit of $3,000 [3 x 1,000]. Q:
What's an example of a player landing on the IPO space and Losing Money?
A:
Suppose Rose lands on the IPO space and decides to trade. She selects 500 shares.
Rose rolls a 10 to BUY the shares and a 2 to SELL them. The difference is 8 [10
- 2]. Rose suffers a Loss of $4,000 [8 x 500] because the SELL price is Lower
than the BUY price. She must pay the Bank this amount. Q:
What's an example of a player landing on the IPO space and Breaking Even?
A:
Suppose Owen lands on the IPO space and decides to trade. He selects the maximum
number of shares [1,000]. He rolls a 7 to BUY the shares and a 7 to SELL them.
The difference is 0 [7 - 7]. Owen Breaks Even by neither making nor losing money
[0 x 1,000 = 0]. | 
