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Portfolio Pages This is a tutorial on reading portfolios.

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Presentation on theme: "Portfolio Pages This is a tutorial on reading portfolios."— Presentation transcript:

1 Portfolio Pages This is a tutorial on reading portfolios.

2 This is the teams homepage or menu page. From here, teams can view their Portfolio pages. There are 5 pages to a portfolio: Account Summary, Account Holdings, Transaction History, Gains & Losses, Pending Transactions, and Transaction Notes. Portfolio Pages

3 Account Holdings Page.

4 This is an Account Holdings page. The Account Holdings shows a listing of stocks and/or mutual funds currently held in your portfolio. The second box shows a short sell transaction. Short position indicates stock is Short Sold (note the negative sign, which indicates these stocks are borrowed). Mutual funds can not be shorted. This first box shows that 100 shares of TM (ticker symbol for Toyota) were bought on 11-09-2001. Long Position indicates stocks or mutual funds bought. Click here to highlight

5 Account Holdings page continued. The second box shows an Unrealized loss of $-253.80 on this transaction, based on the current stock value. This gain or loss changes daily based on the current value of the stock or mutual fund. This first box shows that 100 shares of TM were purchased at a Net cost of $52.938/share (or $5,293.80 for 100 shares). Net cost includes 2% brokers fee. The Current price is the value of stock/mutual fund at the most previous close of market. Click here to highlight

6 Account Holdings page continued. If the same stock or mutual fund is purchased more than once the purchases are combined. For example, Ford (F), may have been purchased at 600 shares on one day, and 400 shares on another - with the last purchase being on 11-07-2001. The net cost is averaged. This is cash not yet spent. A negative number would reflect a portfolio on margin. This link will take you to Enter a Trade. Use the HELP button on any portfolio page for more info, formulas, etc.

7 Gains & Losses Page

8 This second box shows that the net sale price was $27.71 per share (the stock was sold when it was at this market price) for Proceeds of $2,771.34. The Proceeds are added back into the Cash Balance. The loss on this transaction was $114.24. (Original Cost – Proceeds = Gain/Loss.) This first box shows that 100 shares of INTC (Intel) stock were sold on 11-08-2001. The Original Cost was $2,885.58 (or $28.85 per share) when purchased. (This is the net cost which includes the 2% brokers fee when purchased.) This is the Gains and Losses page. It shows all realized gains or losses on stock/mutual fund trades. Gains (or losses) only become realized when a stock or fund is sold or short covered-(pay back of short sold stocks to broker). Click here to highlight

9 Interest and Dividends is an accumulation of dividends paid to account, interest earned on cash unspent (@ 5% per annum) in Cash Balance, and interest paid (@ 7% per annum) if the account is on margin. Note: Just as on the Account Holdings page, multiple sells of a stock or mutual fund will be averaged and reported on one line. Gains and Losses page continued. Click here to highlight

10 Account Summary Page

11 The first section shows a Cash Balance (available cash to spend), Value of Longs (value of stocks/mutual funds currently held in portfolio), and Total Equity (portfolio value that teams are ranked on). Cash Balance + Value of Longs = Total Equity. Portfolios are ranked on Total Equity This is an Account Summary page. Value of shorts (short sells) is in red as this is stock borrowed. It would take this amount of money to cover the short on this day. Click here to highlight Current S&P500 Value: 1,932.72

12 Buying Power is Available Equity x 2. It is the total amount of money available for stock and/or mutual fund purchases and short sales of stock when fully extended on margin. Account Summary page continued. Interest and Dividends is a summary of interest charged @ 7% (if on margin) + interest earned on cash unspent @ 5% + dividends paid. SMG pays actual dividends earned if the stock is owned when dividend is declared. Fees & Commissions are brokers fees @2% for each buy, sell, short sell, or short cover transaction made. Click here to highlight Current S&P500 Value: 1,932.72

13 Account Summary continued. You can select to view and compare any previous days Account Summary by entering the date and selecting Update Table. For information and formulas of all numbers, select the HELP button. (A sample of Help Info for Account Summary follows on next two slides.)

14 Account Summary Field Descriptions and Formulas The Cash Balance is the amount of cash left from the initial $100,000. This includes dividends, interest, and proceeds from the sale of stock. If the number is negative, like in the example shown here for 12/15/1999, this is the amount of money borrowed on margin. The Value of Longs is the current value of all stocks held in a long position (i.e., those that were bought). Total Equity is the sum of the Cash Balance plus the Value of Longs. The Total Equity is the number that is used to determine rankings. The Value of Shorts is the current value of all stocks held in a short position (i.e., those that were sold short). This number is the amount of money that would be required to cover the short on that day and is displayed as a negative number. The Buy Margin Requirement is the amount of collateral that must be supplied to meet the 50% initial margin requirement when borrowing on margin. The Buy Margin Requirement is 50% of the value of the longs plus the value of the shorts. Formula: Buy Margin Requirement = 0.50 x (Value of Longs + Value of Shorts)

15 Account Summary Field Descriptions and Formulas Available Equity is the amount of equity available for supporting additional buy and short sell transactions. This is the most this team can provide for their part of the 50% initial margin requirement. If this figure is negative, all buy and short sell transactions will be rejected. Formula: Available Equity = Total Equity - (0.5)(Value of Longs + |Value of Shorts|) Buying Power shows the total amount of money available for stock purchases and short sales when fully extended on margin. Buying Power is twice Available Equity. If a team puts up all their available equity, they may borrow that same amount. This means 50% of the money for the transactions is their own, which meets the 50% buy margin requirement. Formula: Buying Power = Available Equity x 2 The Minimum Maintenance (also known as Minimum Maintenance Margin Requirement) is the minimum margin requirement (30% in SMGWW) that a team portfolio must maintain after borrowing on margin. If the Total Equity in your portfolio falls below 30% of the value of your long and short positions, your team will receive a margin call. This figure is only relevant for teams that have borrowed money. Formula: Minimum Maintenance = 0.30 x (Value of Longs + Value of Shorts). For this formula, use the absolute value (positive value) of the Value of Shorts.

16 Account Summary Field Descriptions and Formulas Net Interest is the amount of interest received on a cash balance minus any interest paid on a margin loan. All interest and dividend activity is shown on the Transaction History page. Commission Fees are the fees charged for each stock transaction. A 2% commission fee is charged on every stock transaction (buys, sells, short sells, and short covers). Each individual commission fee is listed on the Transaction History page. Realized Gains/Losses are any profits or losses realized from the sale or short cover of a stock. Refer to the Gains & Losses page for more information. Net Equity Gain is the amount of money your team has gained or lost since the beginning of The SMG. If the Total Equity in your portfolio is greater than the $100,000 your team started with, then the difference is a gain. If the Total Equity in your portfolio is less than the $100,000 your team started with, the difference is a loss. Percent Return reflects the realized gains or losses as a percent of the initial $100,000.

17 Pending Transactions Pages

18 This is the Pending Transactions page. Immediately after making a transaction students should check the Pending Transactions. The Trade Entered column shows the exact time the trade was entered. When the transaction is processed overnight, it will disappear from this Pending File. If a transaction stays in Pending more than one day, you may need to re-enter the trade. Orders can be cancelled up until 4:00pm. (This option is not available for Real Time Game participants.)

19 Transaction Notes Page

20 This is the Transaction Notes page. Transactions Notes is a record of all trades entered and shows the exact date and time the transaction was entered. This is like an Error Message page. If a trade is accepted, the message Description is Order Executed. If a trade does not go through, an error message is received. For an explanation of the error messages, select Help when on the Transaction Notes page. (See next slide for error message descriptions.) For explanation of error messages, select Help.

21 Error Message Descriptions The last column, titled Description, informs your team of the status of each trade. If a trade was processed as entered, the Description column will say "Order Executed." If the trade was not processed, the Description column will contain an explanation. Any errors or problems with the trade will be explained here in the Description column. Descriptions for trades that did not go through include: Account Margin Exceeded by: $. (You did not have enough money for the trade, even if you borrowed the maximum.) Account Position Not Short. (You attempted to short cover a stock that you did not have in your portfolio in a short position. Remember, you cannot short cover a stock you have not previously short sold.) Cannot Buy a Stock Below $5.00. (You attempted buy a stock that was trading for less than $5.00 per share. This is not allowed in The SMG.) Order Price is Away From Market. (You entered a limit price that was not met.) Order Rejected. (You attempted to sell a stock that you did not own. Remember, you can only sell a stock that you have previously bought. If you have this security currently in your portfolio, have your advisor notify your state Coordinator.) Security Not Found on Sec Mast Xref File and OSS Sec Mast. (You attempted to trade a stock that was not in the system. Usually this means the stock does not trade on one of the three exchanges used in The SMG. If you receive this message and are sure the stock is traded on one of the three exchanges, please have your advisor contact your state Coordinator.) Invalid Symbol or Price Feed System Down. (If you get this message, you may have entered the ticker symbol incorrectly or part of the system may be down. Check the ticker symbol by using Investor Research and re-enter the trade. You can also check the ticker symbol by going to Enter a Trade and using Ticker Lookup or Validate Ticker. If ticker symbol is correct, have your advisor notify your state Coordinator.)Investor ResearchEnter a Trade

22 Order Canceled. (You canceled the trade before the close of market, while it was still in Pending Transactions.) This is a Possible Error. (You will get this message if a system error occurred during processing. If you get this message, check Account Holdings the day after you entered the trade to see if it has been processed. If not, re-enter the trade.) Not enough position for transaction. (You are trying to enter a transaction to sell or short cover more of a security than you currently hold in your portfolio.) Trade exceeds maximum percentage for equity. (Your state Coordinator has set a maximum % of total equity you can have in any security and the trade entered exceeds this maximum.) Entered quantity is greater than short position. (You have attempted to short cover more shares than you have short sold in your portfolio.) Symbol is not defined in portfolio system. (You have attempted to place a trade with a ticker symbol that is not in the portfolio database. If this is a valid ticker symbol, have your advisor notify your state Coordinator to get it entered so you can then trade it.) OMS control file error-INVREQ. (System is down and could not process your order. Try again later.) Portfolio system unavailable, please try again later. (System is unavailable for trading. Try again later.) Failed: Could not talk to portfolio system. (System was unavailable for trading. Try again later.) Possible duplicate order. (You have just entered a duplicate order that would put your portfolio in an over sold long or over bought short position. The trade has been rejected.) Symbol price is zero. (You have either entered an incorrect ticker symbol or the system price data feed is not pricing the security. If the ticker symbol is correct, have your advisor notify your state Coordinator.)

23 Transaction History Page

24 This is the Transaction History Report. Transaction History is a record of all transactions made to your portfolioincluding trades, interest paid or received (posted weekly), fees and commissions, stock splits, and dividends. The SMG pays dividends and stock splits too!

25 Note: This is the only page that shows actual Cost/Share (without brokers fee).

26 End of Portfolio Pages Tutorial.

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