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SIMULATIONS

SportShoes - Scnario A

SportShoes

SportShoes

A+ A-

SportShoes simulation   SC_SPS1A_US_V1

Simulation scenario

The SportShoes simulation allows you to experience a day of trading in financial markets. You will be able to buy and sell shares of SportShoes.

During the simulation, you will receive news alert about SportShoes, a company whose shares are traded on the SimTrade platform. Some of these news may be given to all participants (public) or only to you (private).

During the simulation, you will also receive more information about the functioning of your account. At midday, you will receive a news alert about the possible sharing of your trading data (history of the orders that you sent to the market / history of your orders that were executed) with other participants.

News alerts will appear every four hours in the news ticker tape situated at the top of the Trading page as shown below.

News alert in the ticker tape

Your goal is to maximize your trading gain at the end of the simulation.

At the start of the simulation, you own an account consisting of 10,000 in cash and 100 SportShoes shares. Given yesterdays closing price of 100, the total value of your position is more than 20,000.

The duration of the simulation is initially set to 5 minutes which corresponds to a 24-hour trading day. Using the timeline, you can increase or decrease the simulation speed at any time.

You must complete the simulation for it to be valid for your grade.

Grading

Your grade for this simulation (100 points) takes into account the following elements:

  • Your trading performance (50 points): your relative performance, that is, the difference between your gain/loss on your position with your intervention during the simulation and the gain/loss without your intervention (as though you have not sent any order). A relative performance between 0 € and 5 000 € is expected. ☛ Computation of the points of performance

  • Your trading activity (20 points): the launch of the simulation (5 points), your determination to go to the end of the simulation (5 points) and the sending of at least one order to the market (10 points).

  • Your participation in the survey at the end of the simulation (30 points): the answers to this survey will be used for a research project on behavioral finance.

SportShoes

SportShoes is a large firm in the clothing and footwear industry (C&F). SportShoes operates multiple high-quality footwear stores in main cities in Europe, Canada and Latin America. Each of these stores cater sport footwear to all ages, from teenagers to senior people. SportShoes was initially a small family firm, founded in Switzerland in the early 1950s. The corporate headquarters of SportShoes are in Geneva.

Evolution of the stock price

After several decades of rapid growth, SportShoes had a successful initial public offering (IPO) in 2017. Since its introduction in the stock market, the stock price of SportShoes (code: SPS) has steadily increased from its introductory price of 40. SPS shares are quoted in Paris, Zurich, London and New York stock exchanges. SportShoes is one of the top firms in the clothing and footwear industry (C&F) in Europe.

SPS shares are currently priced at approximately 100.

What will happen today...

Today is an important day for SportShoes, as the firm will hold its annual General Meeting. The CEO of SportShoes will announce the profit for the last year. The expectation from the market consensus is an annual profit of 640 million for SportShoes. Will the profit announced by SportShoes be below or above market expectation?

Today we also may know the result for the tender offer launched by the Football Champions League to equip the players for new shoes for the next seasons. Will SportShoes win or lose the tender?