Q1: What is Cricket Stock Exchange?

Ans: Cricket Stock Exchange (CricStock) is an online trading game which works on the principles of a stock-market. In fact, CricStock is a virtual stock exchange where ‘stocks’ of cricketers are ‘traded’. It functions almost like any real stock exchange (e.g. NASDAQ, NYSE, BSE) but in a much simpler way.

In a real stock exchange, shares or stocks of real companies are listed, and people trade (buy or sell) those shares. Their trading pattern is usually based on the recent performance of the companies and their expected performance in future. Trading of shares determines the stock price of the companies, which is often an indicator of a company’s actual performance mixed with market sentiments.

Similarly in CricStock, (virtual) shares of cricketers (called player-stocks) are listed, allowing users to trade those shares. The movement in ‘stock prices’ of cricketers will reflect their recent performance on field and how cricket fans expect their performance to be in future e.g. fall in stock price of a cricketer might indicate that the cricketer is not performing well of late, and fans don’t expect him to return to form as well in near future.

CricStock aims to capture sentiments of the cricket fans of the world and translate them into stock prices. CricStock is a very important tool for an average cricket crazy fan to declare his faith and confidence (or lack of them) in a particular cricketer through trading.

CricStock is also very useful for beginners in understanding basics of actual stock market and fundamentals of portfolio management. It has started with simple trading of stocks, but later on CricStock will introduce cricketing parallels of real stock market tools like mutual funds, options, derivatives, etc. Keep watching and trading!

Q2: Who can trade on CricStock?

Ans: All cricket fans of the world! All you have to do is to register yourself with www.cricstock.com with a valid e-mail ID and a valid mailing address (so that when you win any prizes, they can be delivered to your home), and you become a trader of CricStock.

Q3: Which cricketers’ shares are listed on CricStock?

Ans: CricStock lists shares – limited and in equal numbers of face value of Ç 100  (Ç stands for CricStock Rupee) each – of international cricketers of all test-playing countries.

The initial listing is done following an IPO of cricketers taking part in ICC World Cup 2007. More cricketers (player-stocks) will be added with further tournaments taking place around the cricketing world.

These cricketers might not have necessarily played test cricket, but selection into their national team (for Test matches, ODIs, or 20-20 Internationals) is a necessary criteria for being listed on CricStock.

Q4: How long are shares of a cricketer listed on CricStock?

Ans: Shares of a cricketer are listed on CricStock for whole of his continuous international career. Shares will be de-listed (taken off CricStock), if a cricketer
1. announces his retirement from all form of international cricket
2. is not selected for any international match for more than a year
3. (god forbid) dies

Q5: What would happen when shares of a cricketer are de-listed?

Ans: In event of any of the above three eventualities happening, shares of the concerned cricketer (player-stock) will be taken off CricStock on the following due dividend declaration date. The stock-holders of that player-stock will be compensated with (virtual) money worth the face value (Ç 100 per share) or the market-price of the shares, whichever is lower, at the time of the dividend declaration.

Q6: How are the stock prices determined?

Ans: Stock price of a listed cricketer is determined purely through market forces. For example, stock price of a cricketer will go up if more and more people want to buy his stock (say, when a cricketer is in a good form), and will go down if people want to sell his stock off their portfolio (e.g. when a cricketer is not performing well). Basic supply-and-demand model at work!

The initial stock price of a cricketer is calculated based on his prior performance in first class cricket (if the cricketer is making an international debut) or in international matches (if he is making a comeback).

Q7: How can I make money on CricStock?

Ans: A trader makes (virtual) money through two basic means, just as it happens in cases of real stock exchanges:

• Capital Gains/Losses – you can make (or lose!) money by selling shares of cricketers at a price higher (lower) than you had paid to buy them.
• Dividends – each week, you will receive money based on the on-filed performance of the cricketers in international matches.

In future, more (virtual) money can be made through some other schemes e.g. when you perform well in some of the cricketing games/quizzes that would be held by CricStock. Such games/quizzes will be announced well in advance so that all users can participate.

Total worth of your portfolio at a time (which includes cash available for trading and market value of all the stocks held) can be known when you login into CricStock.

Q8: What are the trading hours of CricStock?

Ans: CricStock is an electronic stock exchange and works round the clock, so you can trade at any point of time in 24 hours. But trading is stopped for one hour before dividend declaration so that dividends can go to specific shareholders i.e. there is NO trade on CricStock on Saturdays between 23:00 to 00:00 IST (+5.30 GMT)

CricStock discussion forum and other features will work all the time throughout the day, only trading activities will be blocked for the aforesaid duration.

Q9: What are the rules for trading?

Ans: CricStock would like to see fair and equitable trading on its floor. Please follow these rules and directions when you become a trader of CricStock:
• DON’T use a fake account to indulge in trading
• DON'T collude with friends or other traders to cause artificial price movements
• DON’T spread rumors on discussion forum to cause artificial price movements
• You MAY discuss performance and prospects of a cricketer on discussion forum
• You MAY bid or ask for shares on discussion forum to get an idea about market, but actual trading will be done through CricStock only.

Q10: How often should I trade?

Ans: Practice makes a man perfect, so more often you trade, the better you understand the market forces and learn the tricks of the trade. CricStock team doesn’t recommend any optimal frequency to trade or duration to hold a stock, but do try to login as frequently as possible and have a look at the price movements of different player-stocks (cricketers), and take part in the discussion forum to understand market sentiments.

You should also login frequently because CricStock team will delete accounts which have been inactive for too long.