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Have you ever wondered about how the stock market works? Are you interested in investing and/or learning more about how your retirement account works? SportTrade.net is a great way to learn about the stock market by playing our fantasy sport stock market game. One of our primary objectives of creating SportTrade, was to emulate as close as possible to how a real stock market works. The stock market itself can be fun and exciting, yet scary and stressful if one does not truly understand how it works. We will do our best to provide you some details to learn about stock market trading right here. And while you're here, sign up to play to have fun learning and competing for real prizes. Below are some helpful details to learn about stock market investing. We will give you standard details and definitions based on the true investing and stock market industry then align it to how SportTrade fits in. We hope you enjoy.
Questions (Q)  |  Answers (A)  |  SportTrade (ST)
Q
What is a stock market?
A
A market (also called stock exchange) in which shares of publicly held companies are issued and traded either through exchanges or over-the-counter markets. The stock market is one of the most vital components of a free-market economy, as it provides companies with access to capital in exchange for giving investors a slice of ownership in the company.
ST
A market (also called stock exchange) in which shares of publicly held companies are issued and traded either through exchanges or over-the-counter markets. The stock market is one of the most vital components of a free-market economy, as it provides companies with access to capital in exchange for giving investors a slice of ownership in the company.
Q
How many different stock markets are there?
A
There are over 100 stock markets throughout the world. The most well know stock markets in the United States are the New York Stock Exchange (NYSE) and the NASDAQ. For simplicity sake, we will focus on these two stock markets when referring to any stock market details below.
ST
When you sign up to play on SportTrade, you can sign up for multiple markets. We call specific sports and leagues, markets. This allows you the trader, to buy/sell shares in multiple sports and multiple leagues at the same time based on which sports are currently in season. Below are the current markets on SportTrade:
CFB - College Football Market
NFL - Pro Football Market
CBK - College Basketball Market
NBA - Pro Basketball Market
MLB - Pro Baseball Market
Q
What is a share of stock?
A
A single unit of ownership in a company. This equates to a relative percentage (%) in ownership of the company. Companies sell shares of stock to raise money to invest and/or expand their business. Many times this is in lieu of taking out a bank loan.
ST
A share of team stock at SportTrade represents a percentage of fantasy stock ownership of the given team.
Q
Why do people buy shares of stock?
A
The quick answer, is to make money. When a person buys or owns shares of stock for a particular company, you become part owner of the company. If the company does well (turns a profit, continues to increase sales, expands business, etc.) there are a few ways you will make money.
  1. The company pays dividends. Dividends are incremental payments that are made for each share owned by shareholders. The better the company performs over a certain time period, the higher the dividend payments are.
  2. The stock price increases. Dividends are great but the most lucrative way to make money on the stock market is to buy a stock that is undervalued or from a company that will perform better in the future as compared to the present price. Generally, the better the company does, the more the price of the stock goes up in the market.
ST
The difference with SportTrade is that you are buying shares of teams and not companies. But the same principles hold true. The better a team performs, the more the team's stock price value will increase.
 
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